CBN Reforms Boost Bank Resilience, Attract ₦4.61tn Capital Cardoso

CBN Reforms Boost Bank Resilience, Attract ₦4.61tn Capital Cardoso The Governor of the Central Bank of Nigeria, Olayemi Cardoso, has highlighted Nigeria’s financial sector reforms as a model of proactive regulatory leadership, noting that recent policies have strengthened banks and attracted massive investor confidence. Speaking at a high-level financial regulatory forum in Abuja, Cardoso said Nigeria’s approach demonstrates how early policy action can shield the banking sector from emerging economic risks while positioning it for growth across Africa. Cardoso recalled that in 2024, the apex bank anticipated looming economic and financial pressures and introduced the Banking Sector Recapitalisation Programme to reinforce the resilience of Nigerian banks. According to him, the policy was designed to prepare banks for structural shocks, including subsidy removal and foreign exchange reforms, while ensuring long-term stability in the financial system. He added that the initiative has since become a reference point across Africa, inspiring similar recapitalisation and regulatory reforms in other countries. Despite a challenging domestic economic environment, Cardoso revealed that Nigerian banks have collectively attracted ₦4.61 trillion in fresh capital under the recapitalisation drive.

• Nearly 27% of the capital came from foreign investors
• Banks continued to expand operations beyond Nigeria into other African markets
• Investor participation reflects renewed confidence in Nigeria’s financial system

He emphasised that this achievement came even as the economy adjusted to major reforms such as fuel subsidy removal and exchange rate unification, underscoring the strength of the banking sector Cardoso stated that Nigeria’s regulatory and supervisory reforms now serve as a benchmark for proactive policy-making on the continent. With African banking systems becoming increasingly interconnected, he stressed that Nigeria’s experience shows how forward-looking reforms can stabilise domestic markets while supporting regional expansion. Beyond Nigeria, the CBN governor called on African regulators to strengthen cooperation in tackling cross-border financial risks, warning that financial integration across the continent is advancing faster than regulatory coordination. He urged the adoption of shared regulatory frameworks and prudential standards to ensure financial stability, protect investors, and sustain economic growth across Africa.

• Enhance banking sector resilience
• Improve credit capacity and economic support
• Position Nigerian banks as key players in Africa’s financial ecosystem

Cardoso reiterated the CBN’s commitment to strict supervision, corporate governance, and financial discipline, noting that sustained reforms will be critical to maintaining stability in an evolving global financial landscape.