Governor Olayemi Cardoso of the CBN made this announcement during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) held in Abuja. It was during this meeting that the MPC decided to raise the interest rate from 22.75% to 24.75%.

Governor Cardoso underscored the MPC's scrutiny of developments in the banking sector, expressing contentment with the industry's stability. Despite this satisfaction, the committee emphasized the necessity for commercial banks to expedite their efforts in recapitalization to mitigate potential risks.

He stated, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the banks to sustain their surveillance and ensure compliance with existing regulatory and macro-prudential guidelines."

Furthermore, the MPC urged banks to accelerate their actions in recapitalizing to fortify the system against potential risks in an increasingly globalized world.

In a related statement, Governor Cardoso recalled remarks made last November, shortly after assuming office, regarding the directive for commercial banks to increase their capital base. This directive aimed to support the ambitious goal of achieving a $1 trillion economy under the administration of President Bola Tinubu.

It's worth noting that the last adjustment to the capital base requirement for banks occurred in 2005, during the tenure of Charles Soludo as CBN Governor, when the capital base was raised from ₦2 billion to ₦25 billion. This move highlights ongoing efforts to enhance the resilience of Nigeria's banking sector amid evolving economic landscapes.