The Central Bank of Nigeria announced recapitalisation requirements for the country's banking sector on 28 March 2024, directing commercial banks to raise minimum paid-in capital to levels that in some categories represent a 900% increase on existing thresholds. The policy, which takes formal effect from 1 April 2024, gives banks a 24-month compliance window running to 31 March 2026, and requires each institution to submit a detailed implementation plan to the CBN by 30 April 2024.
Under the revised framework, internationally authorised commercial banks must raise their minimum capital from NGN 50 billion to NGN 500 billion, a tenfold increase. National commercial banks are required to move from NGN 25 billion to NGN 200 billion, while regional commercial banks must increase their capital base from NGN 10 billion to NGN 50 billion.
PREVIOUS RECAPITALISATION
Nigeria previously carried out a bank consolidation round in 2004–2005 under then-Governor Charles Soludo, which reduced more than eighty undercapitalised banks to a smaller group of better-capitalised institutions.
COMPLIANCE TIMELINE AND OPTIONS
The 24-month compliance deadline gives banks until the end of March 2026 to demonstrate that their paid-in capital meets the new thresholds. Eligible capital-raising instruments include public offerings on the Nigerian Exchange Group, rights issues to existing shareholders, mergers and acquisitions, and fresh equity injections from domestic or foreign investors. Banks may also comply by changing their licence authorisation, including downgrading to a category with a lower capital threshold.