CBN reports 27 banks still working to meet minimum capital requirements, as the Monetary Policy Committee holds interest rates at 27 percent.
Nigeria’s Central Bank (CBN) has revealed that 27 commercial banks are still in the process of meeting the apex bank’s new minimum capital requirements, even as the Monetary Policy Committee (MPC) opted to maintain the benchmark interest rate at 27 percent.
The announcement came during the MPC’s 303rd and final meeting of 2025, held from November 24 to 25, 2025, in Abuja. CBN Governor and MPC Chairman Olayemi Cardoso said the recapitalization program, aimed at strengthening the banking sector’s resilience, is set to take full effect by March 31, 2026.
“Sixteen banks have fully complied. Twenty-seven have, through various means, raised capital. We are monitoring developments, and from every indication, the trajectory is positive,” Cardoso said at a post-meeting briefing.
The recapitalization initiative is designed to ensure Nigerian banks are equipped to support domestic growth and navigate external risks, particularly as many lenders expand operations across Africa. Strengthened capital buffers, Cardoso explained, will help protect depositors and enhance banks’ capacity to finance businesses abroad.
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The MPC also retained key monetary policy parameters, including the Cash Reserve Ratio for deposit money banks at 45 percent, merchant banks at 16 percent, and liquidity ratio at 30 percent. The asymmetric corridor around the benchmark rate was adjusted to +50/-450 basis points.
The committee’s decision reflects ongoing progress in taming inflation, which decelerated year-on-year for the seventh consecutive month in October 2025. The MPC attributed the trend to tighter monetary policy, stable exchange rates, improved food supply, higher capital inflows, and a surplus current account balance. The relative stability in fuel prices also contributed to moderating price pressures.
Despite these gains, Cardoso cautioned that inflation remains in double digits, underlining the need for continued vigilance. Analysts noted that the corridor adjustment encourages banks to lend more actively rather than park funds with the CBN, supporting private sector growth.
Commenting on the broader economic outlook, Cardoso emphasized that Nigeria’s banking system remains resilient, with financial soundness indicators within regulatory thresholds. He highlighted that ongoing reforms, combined with stable monetary policy and growing external reserves, provide a positive foundation for future growth.
“The progress in recapitalization reflects the industry’s commitment to a stronger foundation,” Cardoso said. “With continued reforms and careful policy, the Nigerian economy is well positioned for sustainable growth in the coming years.”
