8 Nigerian banks have met the Central Bank of Nigeria’s (CBN) recapitalisation requirements under the current forbearance regime, reflecting a stable and resilient financial sector committed to supporting ongoing reforms.
CBN Governor Yemi Cardoso disclosed this during the Monetary Policy Committee (MPC) meeting held on Monday, July 22, 2025, where he emphasized that these banks have “surpassed the minimum required,” citing continued investor confidence and strong financial metrics across the sector.
One notable highlight was Guaranty Trust Holding Company (GTCO), which raised substantial capital through the London Stock Exchange—a move the Governor praised as indicative of growing foreign investor interest in Nigeria’s banking sector... Read complete content click link below
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Key Highlights from the MPC Briefing:
Monetary Policy Rate (MPR) was retained at 27.5%
Cash Reserve Ratio (CRR) and other liquidity parameters also remained unchanged
The liquidity ratio for banks currently stands at a healthy 50%, exceeding the regulatory minimum of 30%
Capital Adequacy Ratio (CAR) holds at 13%
Non-Performing Loans (NPLs) are well within the 5% threshold
Governor Cardoso stated that these indicators underscore a “fit-for-purpose” banking system capable of weathering economic shocks, attracting foreign capital, and maintaining financial system integrity.
Policy Stance and Outlook
Despite earlier market expectations of a rate adjustment—either a marginal hike to anchor inflation or a cut to ease growth concerns—the CBN chose to hold key policy rates. Cardoso explained that this decision was guided by a need to sustain disinflation and tighten liquidity, ensuring support for the naira while addressing inflationary pressures.
He added that while inflation has shown signs of moderation, the Bank remains cautious, balancing tight monetary policy with the broader need to ensure credit flow and economic expansion.
The forbearance regime, introduced to help banks build buffers during transitional reforms, remains temporary but aligned with global Basel II standards.
Global Confidence and Reform Support
Cardoso noted that international investors who have monitored Nigeria through past cycles now see renewed opportunities, reinforcing the appeal of the local banking system. “They’ve seen Nigeria at its peak and during downturns—and now, they believe this is the right time to re-enter the market,” he said.
With strong capital metrics, proactive regulation, and renewed foreign interest, Nigeria’s financial sector continues to be a pillar of macroeconomic stability.
What’s Next?
All eyes now turn to the next MPC meeting in September, where market participants will closely monitor FX flows, inflation trends, and GDP data for signals on future policy shifts.
Source:
CBN confirms 8 banks meet recapitalisation threshold
