CBN Recapitalisation Deadline Sparks Merger Talks for Four Nigerian Banks
- Four Nigerian banks face potential mergers ahead of March 2026 recapitalisation deadline
- Union Bank sees renewed foreign interest but is hindered by legal disputes after its Titan Trust Bank takeover earlier in the year
- Unity Bank may merge with Providus Bank, strengthening its position in the market ahead of the CBN recapitalisation
Four Nigerian banks are approaching a defining moment as the Central Bank of Nigeria’s (CBN) recapitalisation deadline of March 2026 draws closer, raising the likelihood of mergers, acquisitions and major ownership changes across the industry.
Market analysts say the pressure to meet the new capital thresholds is intensifying, particularly for lenders with weaker balance sheets, limited investor depth, or unresolved legal and structural issues.
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The outcome could significantly reshape competition, ownership structures and long-term sustainability in the banking sector.
Union Bank draws fresh foreign interest
Union Bank has returned to the spotlight amid renewed interest from foreign investors, particularly from the United Arab Emirates.
Market sources say talks around a fresh capital injection are progressing, signalling growing confidence in the bank’s underlying value.
However, the process has been slowed by a lingering legal dispute involving a former core investor, TGI Group.
Analysts note that resolving the case is critical, as it will determine whether Union Bank can complete its capital restructuring within the narrowing window before the regulatory deadline.
Keystone Bank attracts competing bidders
According to a report by the Tribune, Keystone Bank is also seeing increased investor attention, including interest from a local consortium seeking preferred-bidder status.
While domestic participation reflects rising confidence in Nigeria’s banking system, concerns persist over the ability of local investors to independently raise sufficient unencumbered capital.
Market intelligence suggests that a joint acquisition involving foreign partners remains a possibility, though analysts say this option appears less likely for now, given current negotiations and capital requirements.
Unity–Providus merger gains momentum
Unity Bank appears to be making the most tangible progress among the four lenders, following reports of an advanced merger plan with Providus Bank.
Both institutions have reportedly aligned on capital structure and regulatory requirements, placing the deal on firmer footing than earlier attempts.
Industry sources say a pending shareholder legal challenge is expected to be resolved before the March 2026 deadline, possibly as early as February.
If cleared, the merger could proceed swiftly, creating a stronger combined institution.
Polaris Bank eyes strategic options
Polaris Bank is widely expected to pursue an investor-led recapitalisation or explore a merger with another Tier-2 lender.
Market speculation points to Wema Bank as a potential partner, a move analysts say could support broader sector consolidation while strengthening operational capacity.
Recapitalisation reshapes the banking landscape
Beyond these four banks, speculation has emerged around potential mergers between financial holding companies and possible bank-led investments in refinery and energy infrastructure.
While unconfirmed, analysts say the discussions highlight a growing push for diversification and balance-sheet strengthening.
According to Proshare’s Economic & Market Intelligence Unit (EMIU), the CBN appears open to mergers and acquisitions involving banks with marginal or negative shareholder funds as a pathway to building more resilient institutions.
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With less than three months to the deadline, most Tier-1 and Tier-2 banks have met the revised capital buffers.
Tier-3 banks, however, remain in a race against time, facing the risk of forced combinations or loss of relevance in Nigeria’s post-recapitalisation banking era.
Which Nigerian banks are safe amid CBN Recapitalisation?
Legit.ng earlier reported that the race to meet the Central Bank of Nigeria’s (CBN) banking recapitalisation deadline has entered its most decisive phase.
With just weeks to March 31, 2026, the Nigerian banking sector is undergoing one of its most aggressive capital restructurings in decades.
Contrary to widespread claims that only 19 banks have complied, industry data shows a far more advanced level of readiness.
Source: Legit.ng
