Nigeria banking sector raises N4.65 trillion in fresh capital

Nigeria’s banking sector has raised N4.65 trillion in fresh capital through a recapitalisation exercise, with domestic investors contributing just over 20 per cent of the total. Central Bank of Nigeria (CBN) Governor Olayemi Cardoso reported that external reserves have risen above $55 billion, marking an 18-year high, while headline inflation fell to 14.63 per cent in September.

In the second quarter of 2026, Nigeria’s foreign exchange utilisation reached $18.34 billion, the highest level since late 2011. Financial services drove this demand, accounting for $9.64 billion, or approximately 52.6 per cent of total utilisation. This shift indicates that exchange rate stability is increasingly tied to international financial transactions and service payments rather than just merchandise imports.

Cardoso also noted that Fitch Ratings revised Nigeria’s sovereign outlook from stable to positive. The CBN is currently engaging with international credit rating agencies, including Moody’s and Standard & Poor’s, to discuss the country’s pathway toward achieving investment-grade ratings.