The Central Bank of Nigeria is overhauling its credit-risk framework to secure the N4.14 trillion new capital mobilised through the ongoing banking recapitalisation programme. Governor Olayemi Cardoso said in Lagos that the redesign is aimed at enforcing stronger governance, clearer transparency, and stricter accountability across the financial system.
Cardoso said several banks have already met the new capital thresholds, while others are progressing toward the March 31, 2026 deadline. He confirmed that 27 banks have raised funds through public offers and rights issues, with 16 institutions now meeting or exceeding the regulatory requirement.
A dedicated Compliance Department has been established within the apex bank to supervise financial-crime controls, market conduct, enterprise security, corporate governance, and ESG-related responsibilities. Cardoso said the strengthened compliance structure will ensure banks manage new capital prudently.
He said past recapitalisation cycles exposed the system to weak controls and misaligned lending practices, prompting analysts to warn that new capital could be exposed to risky loans without tighter oversight. He noted that the redesign of the credit-risk policy seeks to stop any recurrence.
Cardoso said the CBN Credit Risk Management System has been upgraded to a web-enabled platform, allowing banks to submit statutory returns and conduct borrower status checks directly. Integration of the CRMS with internal bank systems is ongoing to streamline monitoring processes.
A recent Deloitte review, titled “Nigeria’s macro headwinds trigger bank recapitalisation,” estimates the capital-raising requirement at N4.14 trillion. The firm said the upward review of capital bases—from N50 billion to as high as N500 billion, depending on licence category—is necessary to strengthen capital adequacy at a time of inflationary pressures, currency volatility, and elevated interest rates.
Deloitte said the higher thresholds position Nigerian banks to absorb larger risks and withstand domestic and external shocks. It added that improved liquidity buffers will enhance the sector’s loss-bearing capacity.
Cardoso said the banking system remains resilient, noting the CBN’s focus on cyber-risk exposure, credit-concentration issues, and operational vulnerabilities. He linked these measures to ongoing risk-based supervision and Nigeria’s transition to Basel III capital standards.
He said recent stress tests show that key financial-soundness indicators remain within prudential limits. He added that the CBN has reinforced operational standards across cash production, distribution, and access channels, including stricter ATM monitoring, branch-closure approvals, and oversight of payment agents.
