Cardoso: Foreign Investors Pump $706m into Nigeria’s Banking Recapitalisation

Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has explained the rationale behind the $706.84 million foreign capital inflow into Nigeria’s ongoing banking sector recapitalisation programme, describing it as a strong vote of confidence in the country’s financial system reforms.

Speaking at the end of the 304th Monetary Policy Committee (MPC) meeting in Abuja, Cardoso disclosed that foreign participation accounts for approximately 28.33 per cent of the total ₦4.05 trillion so far verified and approved under the recapitalisation exercise.

According to the CBN Governor, the foreign commitments reflect growing investor confidence in the regulatory clarity, policy direction, and long-term resilience of Nigeria’s banking sector.

He noted that the recapitalisation framework, which sets higher minimum capital thresholds across various banking licence categories, has provided certainty to both domestic and international investors. Under the new structure, commercial banks with international authorisation are required to meet a ₦500 billion capital base, while national commercial banks must raise ₦200 billion. Regional commercial banks and merchant banks are expected to meet ₦50 billion thresholds, with national and regional non-interest banks required to maintain ₦20 billion and ₦10 billion respectively.

Cardoso explained that the balanced mix of domestic and foreign capital — ₦2.90 trillion raised locally and $706.84 million from offshore investors — signals broad-based participation and validates the credibility of the reform process.

“Foreign investors are responding to transparency, improved macroeconomic coordination, and confidence in the banking sector’s long-term fundamentals,” he indicated, adding that the apex bank has maintained consistent engagement with market participants throughout the recapitalisation timeline.

The Governor further stated that the recapitalisation initiative is not merely a compliance exercise but a strategic effort to strengthen banks’ capacity to support large-scale financing, absorb economic shocks, and deepen credit intermediation in Africa’s largest economy.

With 20 banks already meeting the new minimum capital requirements and 13 others at advanced stages of their capital-raising processes, the CBN expressed optimism that substantial alignment will be achieved before the March 31, 2026 deadline.

Analysts say the scale of foreign participation underscores renewed international interest in Nigeria’s financial markets, particularly as inflation moderates and policy reforms gain traction. The recapitalisation programme is expected to enhance balance sheet strength, improve risk buffers, and position Nigerian banks more competitively within regional and global markets.

As the deadline approaches, the apex bank maintains that depositor funds remain secure and that institutions under regulatory intervention continue to operate under strict supervisory oversight, ensuring financial system stability throughout the transition.