Union, Keystone, Polaris Banks Will Meet Capital Threshold, Actively Raising Funds – CBN

• Urges customers not to fret, continue regular transactions 

•Apex bank sets up payments committee to fast-track industry reforms 

•NCC, NDIC, SEC are key committee members

 

The Central Bank of Nigeria (CBN) yesterday reassured Nigerians that Union Bank, Keystone Bank, and Polaris Bank have the capacity to meet the minimum recapitalisation requirements and are actively in the process of raising the necessary funds.

On Tuesday, the CBN confirmed that 33 banks have met the revised minimum capital thresholds set under the recapitalisation programme, collectively raising N4.65 trillion over 24 months.

Only a handful of institutions, including Union, Keystone, and Polaris, remain under regulatory or judicial review as they complete the process.

Speaking on the Global Business Report on Arise News, Director of Banking Sector Supervision at CBN,  Dr. Olubukola Akinwunmi, noted that customers of these banks can continue to carry out transactions safely.

He said: “It is very important that we first indicate to all Nigerians that these banks have the capacity to raise the required capital, and they are in the process of raising the capital, the likes of Union Bank, Keystone, Polaris. However, where there are judicial or regulatory processes to be addressed before that can be concluded, it is appropriate. And of course, as an institution that supports the rule of law, we consider it necessary.

“The governor mentioned this in his last MPC (Monetary Policy Committee) press briefing, that these banks are fully operational. Nigerians are free to go in there, transact their businesses.

“They don’t need to panic or withdraw or close their accounts. The Central Bank of Nigeria continues to monitor these banks closely, and once any judicial processes are concluded, they will complete the recapitalisation process.”

Akinwunmi also highlighted the sector’s resilience through Capital Adequacy Ratios (CAR) a key prudential measure that ensures banks maintain enough capital to absorb lending risks.

“For Nigeria, we are well above international standards. The Basel standard is about 8 per cent. In Nigeria, national and regional banks are expected to maintain 10 per cent CAR, while banks with international authorisations are required to maintain 15 per cent,” he said.

He explained the importance of stress testing, which simulates potential shocks to banks’ loan portfolios: “The stress testing framework requires banks to create scenarios where deterioration in their loan books could occur.

“If any shock domestic or external affects households, consumers, or businesses, and impacts their ability to repay, the bank may be exposed to losses. The intent is to ensure banks proactively manage capital, maintain adequacy, and sustain resilience,” he explained.

These measures, he said, are designed to give depositors, businesses, and international investors’ confidence that Nigeria’s banking system remains stable, sound, resilient, and open for business.

Addressing global uncertainties and their impact on Nigerian banks, he added: “Nigerians should know that our banks have been weathering shocks in a very positive way over the last three to five years. Especially in the last two years, banks have been raising capital.

“When we had shocks to the global supply chain in 2024 and 2025, including the US-Iran war, the recapitalisation programme enabled banks to create adequate buffers that would not impair their ability to continue in business.

“Domestically, banks were able to exit forbearance because they had raised adequate capital. The risk-based capital requirements coupled with stress testing frameworks ensure that, no matter the economic headwinds in the future, banks are appropriately positioned with adequate buffers.”

Besides, the CBN has inaugurated a high-level Payment Service Providers Committee, in a move aimed at tightening regulatory coordination, accelerating industry reforms, and resolving long-standing bottlenecks in Nigeria’s fast-evolving digital payments ecosystem.

The committee, inaugurated by CBN Governor, Olayemi Cardoso, brings together key regulators and licensed payment operators under a single platform, signalling a shift towards more structured engagement between the apex bank and industry players.

Deputy Governor, Economic Policy Directorate, Muhammad Abdullahi, said the initiative was designed to reinforce policy alignment, deepen knowledge sharing, and enable collective problem-solving in a sector that has become increasingly central to Nigeria’s economic growth.

Also, he noted that CBN is set to unveil a new payment systems vision within the next month, in a move aimed at shaping the trajectory of Nigeria’s fast-evolving digital finance ecosystem over the next three years.

Speaking at the inaugural meeting in Lagos yesterday, the Deputy Governor, Economic Policy Directorate, Muhammad Sani Abdullahi said: “Over the last number of years, the digital payment landscape in Nigeria has recorded remarkable growth. In 2024 alone, the system processed over 11.2 billion electronic transactions, amounting to over N1.07 quadrillion.

“This is the first time that digital payments crossed the quadrillion naira threshold, representing significant growth.

“The momentum has continued. In 2025, we’ve seen significant growth, and of course, in the first few months of 2026 as well. This is an ecosystem that is significantly growing, that has significant implications for growth in Nigeria, for inclusive growth, for trade, and other significant positives for our country.

“It has become critical, therefore, that the Central Bank of Nigeria inaugurates this panel of this committee to reinforce policy coordination, knowledge sharing, and ensure collective problem-solving by the industry itself and by the central bank.”

The committee includes participation from regulators such as the Nigerian Communications Commission (NCC), Nigeria Deposit Insurance Corporation (NDIC), and the Securities and Exchange Commission (SEC), and will meet quarterly to deliberate on emerging issues and policy priorities within the payments space.

He explained that prior to the committee’s establishment, engagement between operators and regulators was often fragmented, relying on supervisory processes that could slow response times.

The new framework, he noted, is expected to deliver faster resolution of issues and more proactive policy development.

Speaking on new payment systems vision, he said: “In about a month from today, we’ll be launching a new payment systems vision that really outlines where we see the entire ecosystem going in the next three years.

“That vision has been co-created together with the financial technology players, the mobile money operators, payment service providers across the board.

“And so what you’re really going to see over the next couple of years is significant growth in the system, growth that is inclusive, that ensures that many more Nigerians are able to use digital financial services to alleviate poverty, to provide growth, to do their businesses.

“This will ensure that Nigeria continues to play a leading role in this space in a way that also avoids and takes care of fraud-related practices and money laundering or terrorism financing, to ensure that Nigeria continues to stay off the grey list and continues to advance in our financial stability space.”

Beyond growth, regulators are also sharpening focus on system integrity and risk management. Deputy Governor, Financial System Stability, Philip Ikeazor, said new policies on automated anti-money laundering and fraud controls would be deployed across banks and payment service providers to strengthen safeguards.

He said: “In mitigating the risks associated and the extent of fraud, I think we are all aware that the fraud numbers dropped between 2024 and 2025 by 50 per cent. We have just come up with a new policy for automated anti-money laundering and fraud solutions, so that would go a significant way in reducing incidents of fraud once the policies are implemented across all, both in banks and payment service providers.”

Also speaking at the meeting, Managing Director and Chief Executive Nigeria Inter Bank Settlement System (NIBSS), Premier Oiwoh, commended the apex bank on the initiative citing it would deepen payment systems development.

He said: “I am excited with the launch of this committee, and that is going to bring a deepening partnership between the banks and the fintechs in the ecosystem.

“I also want to commend the CBN governor, the directors, the deputy governors, for putting this together. It is something that the industry has been yearning for over the years and today has finally come to life.

“The ultimate beneficiary of what happened here today will be Nigerians, and I look forward to that. That will also position the country on the global landscape for success in terms of financial services and payments across Africa and the world in general.”

Industry stakeholders also welcomed the initiative, describing it as a timely intervention to unlock collaboration and sustain inclusion gains across the ecosystem.

Chief Executive Officer of Enhancing Financial Inclusion and Advancement (EFInA), Foyinsolami Akinjayeju, said: “We have recorded great progress in financial inclusion on the back of development and innovation from the non-bank financial services providers, mainly through payments.

“So, the potential of the payment services providers’ responsibilities and role to enhance inclusive growth is tremendous. This platform is such a great and welcome development to ensure that we can get quick resolutions to issues that are plaguing the payment system in Nigeria.

Furthermore, the Chairman, Association of Licensed Mobile Payment Operators (ALMPO), and Co-founder at Paga, Jay Alabraba added: “This was long in coming. It is something that we have been working with the CBN on, pushing for something like this to happen to bring us together for this kind of collaboration.

“Our industry has really grown over the years, over the decades, and we are very glad to have an opportunity to come together as a forum where we are not only engaging with the regulator or the regulators, but also as industry operators as well, to make sure the right thing happens for the industry as we sustain our growth.”(Thisday)