Banks raise N4.05tr in recapitalisation drive.
By Victor Idajili
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Central Bank of Nigeria (CBN) Governor Olayemi Cardoso yesterday affirmed that 20 banks have fully met the new minimum capital requirements.
According to him, 13 others are on course to meeting the threshold ahead of the March 31 deadline.
He also said that banks have raised N4.05 trillion through domestic and foreign instruments.
Cardoso spoke while giving the latest progress report on recapitalisation.
Cardoso spoke in Abuja after the 304th meeting of the Monetary Policy Committee (MPC). He said recapitalisation is progressing well and expressed confidence that the process would be completed within the stipulated time.
He said: “To date, 20 banks have fully met the new minimum capital requirements, and a further 13 are at the advanced stage of their capital raising processes.
“There are other institutions that are still finalising their plans and evaluating a range of strategic options. And there’s time, which of course includes consolidating where appropriate.”
He outlined that as of February 19, total verified and approved capital raised by banks stood at N4.05 trillion. Out of this amount, N2.90 trillion, representing 71.6 per cent, was mobilised within Nigeria, while $706.84 million (equivalent to N1.15 trillion or 28.33 per cent), came from foreign investors.
“In summary, 71.67 per cent is domestic mobilisation, and 28.33 per cent is foreign participation. This balance represents a mix of domestic and foreign, which signals broad investor engagement and confidence in the sector,” Cardoso said.
The CBN boss added that foreign investors had earlier shown strong interest in Nigeria’s banking sector.
“Several MPCs ago, I mentioned that when I went abroad and met with some of the investor communities, they had a very strong interest in investing in banks. I’m glad that has come out in a very positive way,” he said.
He also addressed concerns about banks currently under regulatory intervention. He explained that such institutions may not follow the same recapitalisation timeline because of legal and structural issues affecting them.
He said: “We remain actively engaged with all relevant stakeholders to ensure that they have an orderly and credible outcome while maintaining financial stability.
“Depositor funds in these institutions remain secure and operations continue under close supervisory and regulatory oversight of the Central Bank.”
At the meeting, the MPC decided to reduce the benchmark interest rate, known as the Monetary Policy Rate (MPR), from 27 per cent to 26.5 per cent. This is the second rate cut in five months.
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“The Committee’s decision was based on a balanced evaluation of risks to the outlook, which suggests that the ongoing disinflation path will continue,” Cardoso stated.
