The Central Bank of Nigeria (CBN) has confirmed that 20 commercial banks have fully met its new minimum capital requirements, with 13 others nearing compliance. This development comes as part of a broader recapitalization drive aimed at strengthening the country’s banking sector.

Compliance and Funding Progress

CBN Governor Olayemi Cardoso made the disclosure during a media briefing following the Monetary Policy Committee’s 304th meeting in Abuja. He described the progress as a positive indicator of investor confidence in Nigeria’s financial system, both from domestic and international sources.

As of February 19, 2026, Nigerian banks had raised a combined N4 trillion in verified and approved capital. Of that total, N2.90 trillion, or about 72 percent, came from domestic investors, while foreign investors contributed $706.84 million, equivalent to N1.15 trillion. Cardoso noted that this strong foreign participation validated his earlier discussions with international investors, who have shown keen interest in Nigeria’s banking sector.

The remaining banks are still working through their recapitalization strategies and exploring options that may include consolidation. Cardoso explained that banks currently under regulatory intervention face different legal and structural constraints, which mean they cannot be expected to meet the same timeline as their peers who have had over two years to prepare since the CBN’s March 2024 announcement raising the minimum capital threshold for internationally licensed banks to N500 billion.

Macroeconomic Context and Challenges

On a broader macroeconomic note, Cardoso revealed that Nigeria’s gross external reserves had climbed to $50.4 billion in February, the highest figure recorded in 13 years. However, he warned that global oil price fluctuations, geopolitical tensions, and undisciplined pre-election fiscal spending could erode these gains.

The governor pledged that the CBN would maintain policy consistency and resist pressure for sudden reversals. He emphasized the need to continue efforts to diversify the country’s revenue base, reducing its dependence on oil exports.

According to the CBN, Nigeria currently has 44 licensed banks, spanning international, national, regional, non-interest, and merchant categories, alongside financial holding companies. The recapitalization drive is part of a broader effort to align the country’s banking sector with global standards and improve financial stability.

Future Steps and Implications

Cardoso highlighted that while the current progress is encouraging, there are still challenges ahead. The CBN is working closely with banks to ensure they meet the new capital requirements, particularly those under regulatory intervention. The central bank has also indicated that it will continue to monitor the impact of global economic trends on Nigeria’s economy.

With the recapitalization of 20 banks already completed, the focus now shifts to ensuring that the remaining 13 institutions meet the required standards. The CBN has emphasized the importance of maintaining a stable and resilient banking sector, which is crucial for economic growth and development.

As the CBN continues to implement its monetary policy, the success of the recapitalization drive will be a key indicator of the sector’s health and its ability to support broader economic goals. The central bank’s ability to manage external shocks and maintain policy consistency will be critical in the months ahead.