Governor Olayemi Cardoso highlighted that foreign reserves have reached a 13-year high of $50 billion, providing a significant boost to the economy. However, the CBN warned that unchecked pre-election spending could threaten these gains.

But the CBN warned that pre-election spending could undo progress if not checked.

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1. Reduce the MPR by 50bps to 26.50% (Previous: 27.00%)
2. Retain the asymmetric corridor around the MPR at +50bps/-450bps
3. Retain the CRR for Deposit Money Banks at 45.0%, and  Merchant Banks at 16.0%
4. Retain the 75.0% CRR on non-Treasury Single Account (TSA) public sector deposits
5. Retain liquidity rate at 30.0%

Cordros

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Speaking at the 304th Monetary Policy Committee (MPC) media briefing, Cardoso said the recapitalisation exercise is progressing in line with the regulatory timetable, with 13 additional banks at advanced stages of their capital-raising processes ahead of the March 31, 2026 deadline.

He explained that institutions still finalising their plans were assessing a variety of strategic options, including consolidation where suitable, as part of efforts to meet compliance within the remaining timeframe.
He also revealed that, as of February 19, 2026, the total verified and approved capital raised under the programme was ₦4.05 trillion. 

He provided a breakdown showing that ₦2.90 trillion (71.67%) was mobilised domestically, while US$706.84 million, estimated at ₦1.15 trillion (28.33%), reflected foreign participation.

According to the Governor, this balanced mix signals broad investor engagement and growing confidence in the sector.

Governor Cardoso also discussed the status of institutions currently under regulatory intervention, noting that specific legal and structural factors influence the order of recapitalisation measures for these banks. 

He said the CBN remains actively engaged with relevant stakeholders to ensure orderly and credible outcomes while maintaining financial stability. In this context, he reassured stakeholders that depositor funds in those institutions remain secure and that operations continue under strict regulatory oversight.

Based on the current pace of compliance and ongoing capital-raising activity, Gov. Cardoso expressed optimism that the market would see substantial alignment with the new capital requirements by the cut-off date.

Under the CBN framework, minimum capital thresholds include: ₦500 billion for commercial banks with international authorisation, ₦200 billionfor national authorisation, ₦50 billion for regionalcommercial banks, ₦50 billion for merchant banks, and ₦20 billion/₦10 billion for national/regional non-interest banks.

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The decision, endorsed at the AU’s 39th Ordinary Session of the Assembly during the February 2026 Summit, reinforces Nigeria’s strategic role in shaping the continent’s evolving monetary architecture and positions the country at the forefront of efforts to establish the proposed African Central Bank and a future single African currency.

Cardoso, at the weekend, noted that hosting the AMI and, subsequently, the African Central Bank hold immense value for Nigeria and the continent. He stressed that it would position Nigeria as the epicenter of Africa’s emerging monetary union and enhance her voice and influence in the shaping of Africa’s single currency architecture.

Hailing the decision that also makes Nigeria a permanent member of the Convergence Council, he said: “This historic decision marks a significant milestone in Africa’s financial integration journey and further emphasises Nigeria’s strategic role in shaping the continent’s evolving financial architecture.”

Its implementation marks a vital step towards enhancing macroeconomic convergence, fostering monetary cooperation, and progressing Africa’s long-term vision of financial sovereignty and economic integration.

The AU Heads of State and Government at the Summit reaffirmed the pathway by endorsing Nigeria’s standing representation on the AMI Board, a position that will remain in place throughout the transitional phase until the formal establishment of the ACB.

The CBN, along with the Ministries of Foreign Affairs, Justice, and Finance, played a central, strategic, and historic role in achieving this milestone.

Over the past years, the Bank has led the technical effort that contributed to the Draft AMI Statute, approved at the 5th Extraordinary Meeting of the Specialised Technical Committee on Finance in Abuja, and provided the AU with the initial hosting facilities and essential logistics for the immediate launch of AMI.

The CBN also participated in the Inter-ministerial collaboration with the Federal Ministry of Finance, the Ministry of Foreign Affairs, the Ministry of Justice, and the Presidency to sustain Nigeria’s advocacy at the highest political levels.

According to Mr. Cardoso, the latest success reflects the collective efforts rooted in sustained determination, structural reforms, strategic diplomacy, technical consistency, and a renewed macroeconomic direction.

“These efforts have led to improved monetary stability, external reserves management, banking supervision, and payment system modernisation. Overall, the achievements of these efforts are reaching new heights, evidenced by Nigeria’s enhanced credibility and influence across the continent,” he noted.

“We will continue collaborating with the African Union Commission, the Association of African Central Banks, Member States, and development partners to establish a solid foundation for the African Central Bank and the future African Single Currency,” he added.

The permanent seat granted to Nigeria is time-bound to the transitional period of AMI and includes a sunset clause upon establishment of the ACB. This design fully respects AU principles of rotation, equity, and regional balance, while ensuring that the host country remains embedded in governance during AMI’s formative years.

While thanking President Bola Ahmed Tinubu, and his vice, Senator Kashim Shettima for their strategic guidance, Mr. Cardoso described the development not only as a victory for Nigeria but also a triumph for Africa’s integration and monetary sovereignty.

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In December 2024, the Group completed a ₦75 billion Private Placement, raising ₦73.86 billion in net proceeds. Of this amount, ₦68.8 billion was allocated to Sterling Bank and ₦5 billion to The Alternative Bank, strengthening the capital base of both institutions. This was followed by a ₦28.79 billion Rights Issue, which was oversubscribed by ₦10.29 billion. Regulatory approvals in May 2025 enabled the allotment of ₦26.639 billion under the Rights Issue, with the oversubscription restructured into a private placement, enabling AltBank to meet the capital requirement for non-interest banks with national licences.

Sterling HoldCo further strengthened its capital position through an ₦88 billion Public Offer in October 2025, which recorded an oversubscription. The CBN has cleared the full amount of ₦96.69 billion for recognition as additional capital, while the Securities and Exchange Commission (SEC) approved the allotment of 13,812,239,000 shares. In total, the Group injected ₦153 billion into Sterling Bank and The Alternative Bank, bringing both institutions into full compliance with the revised capital requirements.

Speaking on the development, Yemi Odubiyi, Group Chief Executive Officer of Sterling Financial Holdings Company Plc, said the recapitalisation strengthens the Group’s ability to support economic activity while maintaining financial resilience. “This exercise goes beyond regulatory compliance. It positions us to expand credit responsibly, accelerate innovation, and provide sustained support to businesses and households, while maintaining the discipline required in a challenging operating environment,” he said.

Odubiyi noted that fully capitalising both Sterling Bank and The Alternative Bank reinforces the Group’s dual-bank structure and its ability to serve conventional and non-interest segments. “Our structure enables efficient deployment of capital across complementary markets and positions us to respond with agility to evolving customer needs,” he said, adding that strong investor participation across the capital programmes reflects confidence in the Group’s governance and long-term strategy.

He added that the strengthened balance sheet provides a platform for the Group’s next phase of growth. “We are entering this phase from a position of significant financial strength, with the capacity to scale non-banking businesses, deepen digital capabilities, and pursue disciplined expansion opportunities while delivering sustainable value for shareholders,” Odubiyi said.

In addition to strengthening its banking subsidiaries, Sterling HoldCo plans to inject ₦10 billion into SterlingFI Wealth Management Limited, its asset management subsidiary, in line with the revised minimum capital requirements for Capital Market Operators issued by the SEC in January 2026. The capital injection will support the commencement of full operations and contribute to the Group’s revenue diversification objectives.

The recapitalisation confirmation coincides with a period of strong financial performance across the Group. In its FY’25 interim results, Sterling HoldCo reported a 99% increase in profit before tax, while gross earnings rose 46% year-on-year, driven by growth across both interest and non-interest income streams. Total assets expanded to nearly ₦4 trillion, customer deposits grew by 18%, and shareholders’ funds increased by 39% to ₦424 billion, reflecting sustained profitability and balance-sheet expansion.

Performance was supported by improved operational efficiency, with the cost-to-income ratio declining to 63% from 72% in 2024, alongside continued investment in digital and operational capabilities across the Group’s banking and non-banking businesses. These factors have strengthened earnings resilience, enhanced service delivery, and reinforced the Group’s capacity to support higher transaction volumes while maintaining prudent risk management.

With a strengthened capital base and residual capacity for further investment, Sterling HoldCo is positioned to pursue strategic expansion opportunities, deepen its non-banking operations, and accelerate its revenue diversification agenda across its portfolio.

ABOUT STERLING FINANCIAL HOLDINGS COMPANY

Sterling Financial Holdings Company PLC (Sterling HoldCo) is a leading Nigerian financial services group committed to enriching lives through innovation and impact with a diversified portfolio that includes Sterling Bank Limited, The Alternative Bank Limited and SterlingFI Wealth Management among others. As a HoldCo, Sterling provides strategic direction, governance, and resources across its subsidiaries, enabling each to focus on its core mandate while benefiting from group-wide expertise, technology, and oversight.

With a heritage of trust built over six decades, Sterling HoldCo is committed to financial innovation, advancing inclusion, and shaping sustainable growth in Nigeria’s economy. The group champions customer-focused solutions and socially responsible initiatives while creating value for shareholders, employees, and the communities it serves, and continues to pioneer offerings across its core businesses in banking, payments, and technology-driven financial services

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The company confirmed that it has fully paid its ₦1.5 billion statutory deposit to the Central Bank of Nigeria (CBN), including an additional ₦1.165 billion recently remitted to meet the Minimum Capital Requirement (MCR) guidelines issued by the National Insurance Commission (NAICOM).

Managing Director/Chief Executive Officer, Dr. Japhet Duru, disclosed that the company recently paid an additional ₦1.165 billion to the CBN, complementing the ₦335 million earlier deposited, to complete the statutory requirement. The additional payment followed the approval of shareholders at the company’s Extraordinary General Meeting (EGM) held on February 4, 2026.

“I am delighted to inform you that we have secured all mandatory consent from our shareholders at the EGM to raise ₦15 billion for the purpose of recapitalisation. We are confident that Universal Insurance Plc will be on the roll call when NAICOM releases the compliance list on July 31, 2026,” Duru said.

NIIRA 2025, signed into law by President Bola Tinubu on July 31, 2025, introduced a new framework for minimum capital requirements for insurance and reinsurance companies as part of broader reforms aimed at strengthening Nigeria’s insurance sector. Existing operators were given 12 months from the commencement date to meet the revised thresholds or face regulatory sanctions, including possible licence cancellation, merger directives, or liquidation.

Under the Act, life insurance companies are required to maintain a minimum capital base of ₦10 billion, non-life operators ₦15 billion, and reinsurance firms ₦35 billion. The new capital thresholds, which represent a significant increase from previous requirements, are complemented by a Risk-Based Capital (RBC) framework designed to align capital adequacy with each company’s risk exposure.

The recapitalisation deadline of July 30, 2026 remains in effect, with NAICOM reiterating that the timeline will not be extended and that compliance monitoring is ongoing.

Duru also reaffirmed the company’s commitment to prompt settlement of genuine claims and delivering superior customer service as it strengthens its capital base.

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The apex bank  also approved that weekly FX purchases by each BDC be capped at USD150,000, and thatutilisation comply with existing BDC operational guidelines.

Under the new directive contained in a circular signed by the Director, Trade and Exchange Department, Dr. Musa Nakorji, all BDCs duly licensed by the CBN are permitted to access foreign exchange through any Authorised Dealer Bank of their choice, at the prevailing market rates. 

The move, according to the circular, aims to deepen market efficiency and ensure broader access to foreign exchange across the economy. 

The CBN, however, imposed strict compliance and risk-management conditions on the transactions. Authorised dealers are required to conduct full Know-Your-Customer (KYC) and due diligence checks on BDC clients before any FX sale. 

To strengthen transparency and accountability, the CBN directed that all licensed BDCs must submit timely and accurate electronic returns in line with extant regulations. 

Any unutilised foreign exchange must be sold back to the market within 24 hours, as BDCs are prohibited from holding FX positions purchased from the NFEM.

The circular further restricts settlement practices, mandating that all FX transactions be conducted through settlement accounts with licensed financial institutions. Third-party transactions are prohibited, while cash settlement is limited to a maximum of 25 per cent of each transaction amount.

Overall, the directive reflects the CBN’s broader strategy to balance market access with strong regulatory oversight, ensuring liquidity in the foreign exchange market while safeguarding financial system integrity.

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This is contained in a circular issued on January 26, 2026, by the Trade and Exchange Department to authorized Dealer Banks (ADBs) and the general public, published on its official website,

According to the apex regulator, the temporary approval became necessary due to the ongoing transition from the legacy NICIS II system and challenges faced by importers in validating or renewing NAFDAC licences on the new B’Odogwu platform after December 2025.

The circular was signed by Aliyu M. Ashiru,  Director of the Trade and Exchange Department.

The CBN directed all Authorised Dealer Banks to continue accepting NAFDAC licences that expired on December 31, 2025, strictly for the purpose of processing Forms M during the dispensation period.

Banks were also instructed to ensure full compliance with the terms of the approval, noting that the arrangement will lapse on February 28, 2026.

The CBN said the move is aimed at preventing disruptions to trade processes while NAFDAC completes the integration of its systems with the National Single Window platform.

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The call was made on Wednesday at the 2026 Nigeria Electronic Fraud Forum (NeFF) Technical Kick-Off Session held in Lagos, which brought together regulators, banks, payment service providers, identity management agencies and law enforcement bodies.

Delivering the keynote address, the Deputy Governor, Financial System Stability, CBN, Mr Philip Ikeazor, said sustained collaboration under the NeFF platform since 2011 had significantly enhanced the resilience and security of Nigeria’s payments system.

Represented by the Director, Development Finance Institutions Supervision Department, Mr Ibrahim Hassan, Ikeazor noted that fraud losses had declined despite the rapid expansion of digital transactions nationwide.

He highlighted key industry milestones, including the migration to EMV chip-and-PIN cards, deployment of two-factor authentication, enhanced transaction monitoring, centralised fraud reporting, and the integration of the Bank Verification Number (BVN) with the National Identification Number (NIN).

According to him, emerging risks such as social engineering, SIM-swap fraud, insider compromise and Authorised Push Payment (APP) scams now demand faster, more integrated and proactive industry responses.

“The industry is committed to reducing fraud response times to under 30 minutes and deploying enterprise-wide fraud management systems that leverage real-time analytics and shared intelligence,” Ikeazor said.

In a separate keynote presentation, the Managing Director/Chief Executive Officer of NIBSS, Mr Premier Oiwoh, disclosed that electronic payment fraud losses declined significantly in 2025 as a result of coordinated efforts by regulators, security agencies and industry stakeholders.

“The reduction in fraud losses was achieved despite a continued rise in transaction volumes,” Oiwoh said, attributing the improvement to interventions by the CBN, the Nigerian Financial Intelligence Unit (NFIU), security agencies, and strengthened monitoring across the payments ecosystem.

He noted, however, that internet banking and e-commerce remained the primary fraud channels, with social engineering and insider-assisted fraud emerging as dominant trends.

Oiwoh stressed that sustaining the gains would require stricter controls, stronger regulatory compliance and deeper industry-wide collaboration. He warned against non-reporting of fraud incidents, noting that weak reporting frameworks, inadequate identity verification and abuse of transaction limits continued to pose systemic risks.

He emphasised that effective Know-Your-Customer (KYC) and Know-Your-Device (KYD) processes—supported by real-time validation of NIN and BVN—were critical to fraud prevention.

According to him, enhanced reporting requirements, coordinated industry action and a central “Persons of Interest” database covering over 13,000 individuals had improved fraud detection and prevention.

Oiwoh also disclosed that NIBSS was collaborating with the CBN and other stakeholders on advanced artificial intelligence-driven monitoring tools and a new national payment infrastructure to further strengthen fraud control and expand financial inclusion.

Also speaking, the Director of the Payments System Supervision Department, CBN, and Chairman of the Nigeria Electronic Fraud Forum (NeFF), Dr Rakiya Yusuf, called for sustained coordinated action among regulators, banks, payment service providers and law enforcement agencies.

She highlighted progress made in EMV chip-and-PIN migration, two-factor authentication and improved identity management, but cautioned that evolving threats required standardised frameworks, faster response times and proactive deployment of ISO 20022 messaging standards and data analytics.

Yusuf expressed optimism that the forum’s deliberations would further strengthen the foundation for a safer, more secure and trusted digital financial ecosystem in Nigeria.

The 2026 NeFF Technical Kick-Off Session was held under the theme: “Shrinking Fraud Losses with ISO 20022 and Identity Management.”

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CBN’s lawyer, Onyeka Ezeah, and NDIC ‘s counsel, Abubakar Shehu, raised the objection before Justice Emeka Nwite shortly when the case was called for defendants to show cause.

Justice Nwite had, on Dec. 29, declined to grant a motion ex-parte filed by Aso Savings and Union Homes seeking to stop the CBN and NDIC from taking further actions over the recent revocation of their operating licences.

The judge, in a ruling on the plaintiffs’ ex-parte motion moved by their lawyer, Joseph Silas, rather held that the interest of justicen would be better met by putting the defendants on notice to show cause why the relief should not be granted.

The judge then adjourned the matter until Jan. 5 for the defendants (CBN and NDIC) to show cause.

When the matter was called on Monday, Silas informed the court that case was fixed for defendants to show cause.

NAN

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