Commercial banks in Nigeria have collectively raised an estimated N2.5 trillion in fresh capital within the first six months of 2025 as part of the Central Bank of Nigeria’s (CBN) ongoing recapitalisation programme.
This was disclosed in the 20th edition of the Nigeria Banking Sector Report 2025 by Afrinvest West Africa Limited, themed “ACT-BOLD: Beyond a Trillion Dollar Economy.” The report, presented in Lagos, said the capital was sourced through rights issues, public offerings, and private placements.
“As of mid-2025, our estimate suggests that banks have collectively raised over N2.5 trillion,” Afrinvest stated, noting that several lenders have already strengthened their capital buffers ahead of the June 2026 compliance deadline.
The report confirmed that at least four institutions, Access Corporation, Zenith Bank, Ecobank, and Lotus Bank — have met the new capital thresholds, while others are exploring mergers and acquisitions as an alternative path to compliance.
Afrinvest also highlighted the role of monetary policy under CBN Governor Olayemi Cardoso, noting that the benchmark interest rate was raised by 875 basis points to 27.5% between February and November 2024 and maintained through the first half of 2025.
This, the report said, helped stabilise the macroeconomic environment and contributed to a 15% real growth rate for the financial institutions sector in Q1 2025 — placing it among the top 10 contributors to Nigeria’s GDP during the period.
On Nigeria’s ambition to achieve a $1 trillion economy by 2031, Afrinvest noted that the country would need to sustain a minimum annual GDP growth rate of 21.9% from its rebased nominal GDP of N372.8 trillion. Achieving this milestone, it said, may require a stronger exchange rate closer to N1,500/$1 or beyond.
However, the report cautioned that structural bottlenecks must be addressed to avoid uneven growth across sectors, warning that without reforms, banks’ contributions might only benefit a narrow range of services while leaving the wider economy sluggish.
The report’s unveiling doubled as the celebration of Afrinvest’s 30th anniversary. Group Managing Director, Dr. Ike Chioke, reflected on the firm’s resilience through decades of economic cycles — from Nigeria’s return to democracy in 1999, through the 2004–2005 banking reforms, the 2008 global financial crisis, the 2014 oil price crash, and the COVID-19 pandemic.
“Each era tested resilience but also opened new opportunities,” Chioke said. “Afrinvest has grown through these cycles, always adapting, always innovating. This 20th edition of our Banking Sector Report is both a call to action and a framework for Nigeria’s growth.”
The event drew top financial sector stakeholders, regulators, and investors, underscoring the critical role of the banking sector in supporting President Bola Tinubu’s economic transformation agenda.
