The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has announced that 32 banks have already satisfied the revised minimum capital requirements under the ongoing banking sector recapitalisation programme.
Speaking at the Monetary Policy Forum in Abuja on Thursday, March 26, 2026, Cardoso described the achievement as “commendable” and a significant step toward building a stronger, more resilient financial system capable of supporting Nigeria’s ambition of becoming a $1 trillion economy.
“The banking sector recapitalisation programme has recorded commendable progress, with 32 banks having already met the revised capital requirements,” he said. “This achievement has significantly strengthened the resilience and capacity of the Nigerian banking system, positioning it to effectively mobilise long-term capital, support productive investment, and play its critical role in enabling the transition towards a $1.0 trillion economy.”
Cardoso noted that the exercise forms part of a wider reform agenda aimed at improving governance, risk management, and overall stability in the banking sector. Key accompanying measures include the introduction of a risk-based capital framework, a phased exit from regulatory forbearance, stricter enforcement of insider lending rules, and restrictions on credit to major non-performing obligors.
He also highlighted upgrades in supervisory capacity through enhanced early warning systems, improved off-site surveillance, and stronger cross-border oversight of Nigerian banks with international operations.
On the inflation front, Cardoso credited aggressive monetary tightening in 2024 — which saw the Monetary Policy Rate raised by 875 basis points — with driving a sharp decline in headline inflation from 34.8% in December 2024 to 15.06% in February 2026. The CBN later began gradual easing, cutting the policy rate to 26.5% in February 2026.
In the foreign exchange market, the governor pointed to the clearance of over $7 billion in verified FX backlogs and the introduction of a willing-buyer, willing-seller system as major steps that have improved transparency and narrowed the parallel market premium to below 2%. Diaspora remittances have also surged, rising from about $200 million to $600 million monthly, with the CBN targeting $1 billion per month by the end of 2026.
External reserves have strengthened considerably, reaching $50.12 billion in February 2026, up from $38.34 billion a year earlier. Net reserves rose sharply from $3.99 billion at the end of 2023 to $34.80 billion by the end of 2025.
Cardoso further noted that curbing excessive Ways and Means financing — which dropped from N26.95 trillion in May 2023 to N2.84 trillion by January 2026 — has restored central bank independence and ended fiscal dominance. These reforms have earned international recognition, including sovereign rating upgrades from Fitch and Moody’s, and Nigeria’s exit from the FATF grey list in October 2025.
Looking forward, the CBN governor said the next phase of reforms will focus on achieving single-digit inflation, sustaining exchange rate stability, and building stronger external reserves. He projected domestic economic growth at 4.49% for 2026, while cautioning against global risks such as geopolitical tensions and oil price volatility.
“The most challenging phase of macroeconomic adjustment is now behind us,” Cardoso said, adding that continued collaboration among stakeholders will be critical to sustaining the gains made so far.
The CBN had earlier reported that Nigerian banks mobilised a total of N4.61 trillion in fresh capital under the recapitalisation programme, reflecting strong investor appetite and growing foreign participation in the sector. The exercise is already yielding measurable improvements in investor confidence and enabling regional expansion by Nigerian banks.
