The Central Bank of Nigeria (CBN) said eight commercial banks have met the N500 billion recapitalisation requirement ahead of the March 2026 deadline.
The apex bank had mandated banks in the country to increase their capitalisation, setting different band thresholds to be met by March 2026.
The Governor of the CBN, Olayemi Cardoso, however, said several banks had made significant progress in strengthening their capital base to align with the new regulatory threshold.
Cardoso, who spoke after the two-day Monetary Policy Committee (MPC) meeting, stated that the ongoing recapitalisation initiative is helping to reinforce the sector’s resilience, with key Financial Soundness Indicators (FSIs) showing sustained stability.
He also disclosed that the Committee decided to retain all monetary policy parameters to consolidate the recent gains in inflation control and price stability.
The benchmark Monetary Policy Rate (MPR) remains at 27.50 per cent, with an asymmetric corridor of +500/-100 basis points. The Cash Reserve Ratio (CRR) was maintained at 50.00 per cent for deposit money banks and 16.00 per cent for merchant banks. The Liquidity Ratio was also held steady at 30.00 per cent.
This decision, the CBN Governor said, was taken to “sustain the momentum of disinflation and sufficiently contain price pressures,” noting that Nigeria has begun recording gradual improvement in inflation dynamics.
“We will continue to use every tool available—MPR, CRR, and ensuring an efficient foreign exchange market—to bring down inflation to significant levels,” he said.
Cardoso stated that managing inflation expectations remains a key focus for the Bank, and transparency in policy direction will help guide public and investor sentiment.
“We are determined to ensure that we use all the different tools at our disposal. Inflation expectations will be managed in a way that the public understands the direction of policy. We are committed to transparency,” he said.
The MPC noted improving conditions in the foreign exchange market, buoyed by increased capital inflows, a rise in non-oil exports, a rebound in crude oil production, and reduced import volumes.
CBN Governor Olayemi Cardoso disclosed that Nigeria’s external reserves had risen to $40.11 billion as of July 18, 2025, which equates to approximately 9.5 months of import cover for goods. This development, he said, reflects growing confidence in the economy and improved forex liquidity conditions.
He also acknowledged that the spread between the official and parallel market exchange rates has narrowed significantly, with several banks now permitting the use of naira debit cards abroad — a development that marks a return to normalcy and reflects improvements in market confidence.
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