In March 2024, the Central Bank of Nigeria (CBN) initiated an ambitious recapitalisation programme aimed at strengthening the country’s banking sector. The initiative, which concluded on March 31, 2026, has seen Nigerian banks raise a total of ₦4.65 trillion ($3.38bn) in new capital.
According to the CBN, the programme recorded strong participation from both domestic and international investors, w...
The shift in the recapitalization strategy highlights a systemic tension between financial stability and economic development priorities. The move from consolidation-focused mergers in 2005 to a capital-raising exercise in 2024 suggests a recognition that simply reducing the number of institutions was insufficient; the focus must now be on the quality and resilience of the capital base. The mechanism of requiring banks to raise fresh funds, rather than relying solely on retained earnings, was in...