Fourteen commercial banks have successfully met the new capital requirements under the Central Bank of Nigeria’s (CBN) ongoing recapitalisation exercise.
CBN Governor Olayemi Cardoso disclosed this on Tuesday, September 23, at the Monetary Policy Committee briefing in Abuja.
According to Cardoso, the milestone reflects the resilience of the Nigerian banking sector, but he warned that rising excess liquidity in the system could pose risks to macroeconomic stability if not managed carefully.
Cardoso explained that the Monetary Policy Committee’s recent decision to cut the monetary policy rate by 50 basis points to 27 per cent is part of broader efforts to support economic recovery, noting that headline inflation eased to 20.12 per cent in August 2025 from 21.88 per cent in July.
He also highlighted the strong performance of the financial sector, with the recapitalisation exercise helping to strengthen banks’ capacity to support lending and business growth.
The governor stressed that while these developments are encouraging, the CBN remains vigilant about risks associated with excess liquidity, which has largely resulted from fiscal releases and improved revenue inflows.
He stressed the importance of a stable banking system for sustaining investor confidence, fostering transparency, and ensuring long-term financial stability.
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He said: “We are pleased that 14 banks have fully met the new capital requirement under the ongoing recapitalisation exercise. This demonstrates the resilience and soundness of our financial sector, but we are also mindful of the persistent build-up of excess liquidity in the system, largely driven by fiscal releases and improved revenue inflows. While the sector remains strong, we will continue to deploy measures to ensure that excess liquidity does not undermine macroeconomic stability, and to maintain transparency, promote effective risk management, and support long-term growth and confidence in our banking system.”
The Sun
