Nigeria’s Banking Sector Strengthens as 20 Banks Meet CBN Capital Targets Ahead of March Deadline

Nigeria’s Central Bank (CBN) says around 20 deposit money banks have now met the revised capital requirements under the ongoing banking recapitalisation programme, with the March 31 deadline approaching.

CBN Deputy Governor for Economic Policy, Dr. Muhammad Abdullahi, made the disclosure at the launch of the 2026 Macroeconomic Outlook in Lagos, noting that more banks are achieving compliance daily as the deadline nears.

The recapitalisation initiative aims to bolster banks’ financial strength so they can expand lending to small businesses and other priority sectors—supporting Nigeria’s goal of building a trillion‑dollar economy. However, Abdullahi stressed that simply increasing capital isn’t enough; banks must now focus on translating stronger balance sheets into productive and sustainable credit growth.

He also highlighted the CBN’s efforts to enhance its regulatory capacity through technology, to make sure the benefits of recapitalisation reach the real sector. Meanwhile, wider development financing needs remain large, with an estimated funding gap across key sectors.