Nigerian Banks Strengthened for Economic Growth
The Central Bank of Nigeria (CBN) has affirmed that the country’s banking sector is well-positioned to foster economic growth while effectively managing both domestic and international challenges, according to Governor Olayemi Cardoso.
All Banks Fully Operational for Customers
Cardoso assured consumers that all banks across Nigeria remain fully operational, enabling customers to continue accessing a wide range of banking services without interruption.
Domestic and International Capital Contributions
In a significant development, the CBN reported that Nigerian banks successfully raised a total of N4.65 trillion in new capital over the past two years, completing a recapitalization initiative due to conclude on March 31, 2026. Notably, 72.55% of this capital was sourced domestically, while 27.45% came from international markets, showcasing sustained confidence from investors in the Nigerian banking sector.
Apex Bank Enhances Compliance Standards
The CBN has also elevated its regulatory standards related to anti-money laundering (AML) compliance. Banks and financial institutions are now expected to take full ownership of their control frameworks, with a deadline set for June 10, 2026, for submitting detailed implementation plans aligned with these new automated AML standards.
Successful Recapitalization Program
The central bank announced the completion of its banking sector recapitalization program initiated in March 2024. This program has significantly reinforced the capital adequacy ratio (CAR), surpassing the Basel international benchmarks. Currently, 33 of the 37 banks in Nigeria meet the revised minimum capital requirements, although the identities of the four banks that did not comply have not been disclosed.
Strengthened Financial System Resilience
In addition to improving the CAR standards, the CBN underscored that the recapitalization efforts paired with the methodical exit from deregulation have led to enhanced asset quality. These improvements have bolstered transparency across balance sheets and reinforced overall financial stability within the sector. To safeguard these advancements, the CBN has reinforced its risk-based capital regulatory framework, requiring regular stress tests to ensure banks maintain adequate capital buffers.
New Regulatory Measures to Combat Money Laundering
The recent circular from the CBN outlines its dedication to enhancing governance and integration within the anti-money laundering and counter-terrorist financing frameworks in Nigeria’s financial system. Emphasizing the importance of comprehensive compliance at the organizational level, the CBN signaled a shift from a simplistic compliance approach to a more rigorous assessment of effectiveness, governance, and integration in AML practices.
Mandatory Submission of Implementation Plans
All financial institutions are required to submit detailed implementation plans that address the new AML baseline standards, identifying the current state, target state, necessary actions, timelines, and governance structures. The CBN has mandated that these plans be submitted electronically by the June 10, 2026 deadline, warning that any incomplete or inconsistent submissions may lead to supervisory actions.
