Nigeria is outpacing its sub-Saharan African (SSA) peers in banking sector recapitalization, according to Fitch Ratings. The Central Bank of Nigeria (CBN) triggered this recapitalization drive by raising the minimum paid-in capital tenfold for international-license banks to $348 million and eightfold for national-license banks to $139 million, requiring fresh equity rather than retained earnings. This aggressive approach, with compliance expected by Q1 2026, surpasses regional peers, many of whom have moderate increases over a longer period. Despite steep thresholds, most major Nigerian banks have already raised the required capital, supported by strong investor appetite. The reforms aim to strengthen resilience against economic shocks, boost credit growth, and reduce concentration risks, positioning Nigeria’s banking sector as a model for robust, transformative financial development across Africa.
Nairametrics
