Financial Regulation

Mid-tier and smaller Nigerian banks are struggling to meet the Central Bank of Nigeria's recapitalisation requirements as the deadline nears, while major lenders have successfully raised capital, creating a two-tier banking system.

Nigeria's Central Bank reports 20 lenders have satisfied revised minimum capital thresholds ahead of the March 2026 deadline, while pension fund equity allocations climbed to N3.96 trillion over five years, signaling strengthened institutional participation in domestic markets.

Mandatory reserves held by five major Nigerian banks with the Central Bank of Nigeria climbed to N6.9 trillion, reflecting the impact of sustained tight monetary policy as the sector navigates recapitalization pressures and liquidity management challenges.

The Kenyan government plans to create a separate regulatory authority for non-Sacco cooperatives, with Cabinet Secretary Wycliffe Oparanya citing operational strain on the existing Sacco Societies Regulatory Authority.

Nigerian regulatory bodies are strengthening oversight mechanisms with the Financial Reporting Council enforcing mandatory audit firm registration from April 1, while the electricity regulator introduces structured complaint resolution protocols.

PenCom's upward revision of equity exposure limits for retirement savings funds could release nearly N1 trillion in immediate liquidity into the Nigerian Exchange, while parallel reforms in tax administration and regional banking policy signal broader structural shifts across West Africa's largest economy.