ALTHOUGH the March 31st deadline for their recapitalisation was not met, the Central Bank of Nigeria (CBN) has advised depositors with Union, Keystone, and Polaris banks not to panic about their funds.
The apex bank said the banks were still undergoing judicial and regulatory procedures, while assuring depositors about the safety of their funds.
The Director of Banking Supervision at the CBN, Olubukola Akinwunmi, who disclosed this on Thursday, April 2, in Abuja on Arise Television Business Morning Programmes, assured depositors of the safety of their funds.
“It’s important we tell Nigerians that these banks have the capacity to raise the required capital, and they’re in the process of raising the required capital, the likes of Union, Keystone and Polaris banks. However, there are judicial and regulatory processes to be addressed before that can be concluded.
He added, “It’s appropriate as an institution that supports the rule of law that we consider it necessary and the governor, Olayemi Cardoso, has mentioned in the last MPC meeting that these banks have different pathways to recapitalisation.”
He said that Nigerians and depositors with the banks had nothing to panic about and could go in and withdraw their funds without any fear of losing their money.
He noted that the apex bank maintained close watch on these banks until the judicial processes are concluded, noting that “they’ll be back on recapitalisation based on the minimum capital requirements stipulated by the apex bank once the processes are sorted.”
Akinwunmi also informed that banks would undergo occasional “stress tests” to ensure their financial stability without waiting for a long-term recapitalisation.
He emphasised the importance of occasional stress tests for banks to ascertain their risk exposure to businesses and the handling of depositors’ funds.
“We don’t have to wait for another 20 years for another recapitalisation to happen. The stress test framework requires the banks to adequately manage a scenario that could happen when there’s a shock that exposes them to higher risks.
“On an ongoing basis, banks should assess their risk exposure based on a gradual deterioration of their loan books, which is a scenario-based deterioration and the bank’s capacity to raise the required capital while managing their risk exposure,” he explained further.
The focus, he said, was for banks to proactively manage their capital adequacy and, where necessary, raise fresh capital required to maintain a capital base without unexpected risk exposure.
“What that does is to ensure that… the banks can maintain a banking system that is stable, resilient and sound for business,” he added.
The ICIR reports that the apex bank has concluded the recapitalisation programme of Nigeria’s banking sector, an effort aimed at strengthening the resilience of the financial system and enhancing its capacity to support the economy.
The CBN introduced a revised recapitalisation policy in March 2024, giving banks a 24-month window, from 1 April 2024 to 31 March 2026, to strengthen their capital base. The policy requires Nigerian banks to strengthen their capital base, with thresholds of N500 billion (international), N200 billion (national), and N50 billion (regional).
Affirming the conclusion of the exercise on Wednesday, April 1, the CBN stated that 33 banks had met the new minimum capital requirement, while raising a total of N4.65 trillion in fresh capital over 24 months.
It stated that the programme recorded strong participation from both domestic and international investors, with 72.55 per cent of capital sourced locally and 27.45 per cent from international markets, which reflects sustained confidence in the Nigerian banking sector.
The central bank stated that all banks remained fully operational, ensuring continued access to banking services for customers.
It added that the programme had strengthened capital adequacy ratios (CAR), with the sector maintaining levels above international Basel benchmarks.
The bank noted that the minimum CAR thresholds remained at 10 per cent for regional and national banks and 15 per cent for banks with international authorisation.
The recapitalisation exercise, implemented alongside an orderly exit from regulatory forbearance, has improved asset quality, reinforcing balance sheet transparency and overall financial system stability.
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Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.
It’s observed that some pensioners montly stipends paid to some of the banks that has not recapitalised is hanging as the banks has not disbursed to most individuals accounts after the central bank has released to individuals banks,many pensioners suffered in silence while THE CBN should wade in to the matter to alleviate the suffering of the affected pensioners
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Why are you trying to push a narrative by Staying just the above banks? There was no time CBN explicitly stated names of these banks