Central Bank of Nigeria (CBN) has said that Deposit Money Banks (DMBs) yet to meet the ongoing recapitalisation requirements will continue operations while they work through legal and regulatory challenges that have slowed their compliance process.

CBN Governor, Olayemi Cardoso, disclosed this after the latest Monetary Policy Committee (MPC) meeting, noting that the banking sector recapitalisation exercise has so far been largely successful and reflects strong investor confidence in the Nigerian economy.

According to him, 33 banks met the new capital requirements, a development he said underscores the resilience of Nigerian investors and continued interest from foreign participants in the financial system.

He added that domestic investors accounted for about 74 per cent of total subscriptions in the exercise, while foreign investors made up the remaining 26 per cent, describing the participation mix as a strong endorsement of Nigeria’s economic prospects.

Cardoso said the process had progressed relatively smoothly overall, but acknowledged that a small number of banks were yet to complete their recapitalisation due to what he described as legal, regulatory and judicial constraints. He stressed that these institutions were not being treated as fundamentally weak, but rather as entities facing timing and procedural setbacks.

He explained that some of the affected banks had previously been subjected to regulatory interventions, which, in effect, reduced the timeframe available for them to raise fresh capital compared with other institutions that were not under similar restrictions.

It would be unfair to compare their timelines directly with those of other banks that had the full period to comply,” he said, adding that the CBN remained fully engaged with all institutions still on the recapitalisation path.

The CBN Governor maintained that the banking industry remains stable and that there is no disruption to normal operations, despite the ongoing capital exercise. According to him, the central bank continues to monitor developments closely while supporting efforts by affected banks to resolve outstanding issues.

“Business continues as usual, and we support all their efforts towards resolving regulatory and legal impediments in their way,” Cardoso said.

The recapitalisation programme is part of broader reforms aimed at strengthening the resilience of Nigeria’s banking sector, improving balance sheet capacity, and positioning lenders to better support economic growth.

Cardoso noted that once the remaining banks overcome their current challenges, they are expected to continue along the recapitalisation trajectory and meet the required thresholds.

The CBN has repeatedly stated that the exercise is designed to ensure a stronger and more competitive financial system capable of supporting Nigeria’s long-term economic ambitions, particularly in an environment of global uncertainty and domestic macroeconomic adjustments. (The Sun)

Update news