The Central Bank of Nigeria has announced the successful conclusion of its two-year banking sector recapitalisation programme, with 33 banks meeting revised minimum capital requirements and collectively raising N4.65 trillion in new capital by the 31 March 2026 deadline. The CBN confirmed that domestic investors provided 72.55 percent of the total funds raised, with the remaining 27.45 percent coming from international markets.
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What the exercise involved
Launched in March 2024, the programme set higher capital thresholds based on licence type. Banks with international licences were required to raise a minimum of N500 billion, national banks ₦200 billion, and regional banks N50 billion. Participating institutions used a range of strategies including public offers, rights issues, private placements, and mergers and acquisitions to meet the requirements.
Of the 33 successful institutions, 24 are commercial banks, six are merchant banks, and three are non-interest banks. A limited number of institutions remain subject to ongoing regulatory and judicial processes but continue to operate fully.
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Why this matters for small businesses
SME lending in Nigeria currently sits at roughly one per cent of total bank credit, well below the sub-Saharan Africa average. The recapitalisation changes the conditions under which banks can lend. With larger balance sheets, financial institutions are better positioned to take on the kind of measured credit risk that small businesses represent, without overstretching their capital buffers.
The CBN has been explicit that the fresh capital should flow into productive sectors, including SMEs, manufacturing, agriculture, and infrastructure — areas that have historically been starved of affordable credit.
Analysts at Augusto and Co project more lending activity ahead, anticipating that banks will deploy funds into higher-impact areas as their loan books expand.
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The caution worth noting
Experts have warned that meeting regulatory capital thresholds does not automatically translate into credit flowing to small businesses. The Centre for the Promotion of Private Enterprise has noted that despite the recapitalisation momentum, the benefits have yet to reach the real economy in a meaningful way.
For Nigerian SMEs, the real test will not be whether banks raised the money, but whether the improved balance sheets translate into loan products that are accessible, affordable, and suited to how small businesses actually operate.
CBN Governor Olayemi Cardoso described the outcome as a milestone that positions the financial system to support economic growth and withstand both domestic and external shocks. The regulator has committed to periodic stress tests and ongoing supervisory reviews to ensure the gains are sustained.
