The Central Bank of Nigeria has reassured Nigerians that the five deposit money banks yet to fully meet the recapitalisation requirements will continue their operations.
The apex bank also noted that ongoing efforts are being intensified to address the legal and regulatory challenges that have slowed down their compliance process.
The CBN Governor, Olayemi Cardoso, made this known after the Monetary Policy Committee meeting, stating that the recapitalisation exercise has recorded significant progress.
He further explained that the process has strengthened confidence in the banking sector and attracted strong interest from both local and foreign investors.
According to Cardoso, the banks involved are not weak or under financial distress. He clarified that their challenges are mainly procedural, legal, and regulatory issues, which delayed their ability to meet the recapitalisation deadline.
The Governor of the Central Bank of Nigeria (CBN) disclosed that 33 banks in the country have successfully met the newly introduced capital requirements under ongoing banking sector reforms.
He described this achievement as a strong endorsement of Nigeria’s financial system and economic prospects, particularly at a time when the global economy is facing uncertainty and domestic economic adjustments are ongoing, as reported by Daily Sun.
Cardoso also highlighted that Nigerian investors dominated the recapitalisation process, contributing about 74 percent of the total investment, while foreign investors accounted for the remaining 26 percent.
The Central Bank of Nigeria explained that several of the banks affected by the recapitalisation requirements had earlier been subjected to regulatory interventions. According to the apex bank, these actions limited the timeframe available to those institutions to mobilise new capital when compared with other lenders operating under normal conditions.
The Governor of the CBN, Olayemi Cardoso, noted that it would be inappropriate to directly compare such banks with those that benefited from the full recapitalisation period without facing legal or regulatory constraints.
He emphasised that the differing circumstances placed the institutions on unequal footing.
He further stated that the apex bank is still actively engaging with the banks that have not fully complied, while also providing support to help them resolve outstanding legal and regulatory issues tied to the recapitalisation process.
