Nigerian Banks Edge Closer to Stability as Recap Deadline Nears, Winners, Strugglers Unveiled
- Nigeria's banking sector is faceing a recapitalisation deadline of March 31, 2026, set by the Central Bank
- Top performers like Access Bank and Zenith Bank exceed new capital requirements, showcasing investor confidence
- Failure to meet capital benchmarks could lead to mergers, downgrades, or exits from the market
Nigeria’s banking sector is in the final stretch of an intense recapitalisation drive that has defined its outlook for 2026.
The Central Bank of Nigeria (CBN) set new, higher minimum capital requirements in March 2024, requiring commercial banks with international licences to raise at least ₦500 billion, national banks ₦200 billion and regional banks ₦50 billion before the March 31, 2026, deadline.
Source: Getty Images
This ambitious policy aims to fortify the financial system, boost resilience to shocks and stimulate economic growth.
Banks that have cleared the hurdle
As of late 2025 and early 2026, a significant number of lenders have successfully met the CBN’s capital requirements, demonstrating investor confidence and strategic execution.
Among the standout performers are the country’s largest and most systemically important banks.
Access Bank and Zenith Bank were early to hit and even exceed the ₦500 billion benchmark, with Access Bank raising substantial funds through a rights issue and Zenith topping ₦600 billion in capital and premiums.
Guaranty Trust Holding Company’s banking subsidiary (GTBank) has also joined these ranks, lifting its capital above the ₦500 billion threshold after aggressive equity raises.
United Bank for Africa (UBA) has raised enough capital to position itself above the threshold, pending final regulatory confirmation.
Beyond the biggest names, several other banks across categories have met the requirements.
National banks such as Wema Bank, Stanbic IBTC, Globus Bank, and PremiumTrust Bank have surpassed the ₦200 billion mark.
Non-interest lenders like Jaiz Bank and Lotus Bank cleared their own minimums under the Sharia-compliant category.
Specialist and merchant banks, including Greenwich Merchant Bank and others, also crossed their thresholds through various capital-raising strategies.
The CBN has noted that in total at least 16 banks have already met the recapitalisation standard, with a broader set of 27 raising fresh capital as the deadline approaches.
Banks still racing the clock
Despite substantial progress by many, several lenders are yet to confirm compliance with the new capital benchmarks.
Some mid-tier and regional banks continue to pursue rights issues, private placements and mergers to raise the necessary funds.
According to recent sector lists, banks still striving to meet the recapitalisation target include Unity Bank, Keystone Bank, and others.
These institutions face varying degrees of shortfall and are exploring options from fresh capital issuances to mergers and acquisitions.
Several foreign-affiliated banks with national licences, such as Standard Chartered and Citibank Nigeria, also need substantial capital boosts or strategic repositioning to comply.
Should they fail to secure funds or choose to exit the market, their future licences could be at risk or trigger consolidation moves.
Possible outcomes if banks fall short
For banks that miss the deadline, the consequences could be significant.
The CBN has made clear that non-compliance may prompt merger requirements, licence downgrades, or even exits from commercial banking in Nigeria.
Smaller lenders might have to accept takeovers by stronger peers, surrender operating licences or be reclassified to non-bank financial institutions.
Mergers are already being discussed as survival strategies, with analysts warning that the process carries risks.
Integrating systems, cultures and operating models under pressure can strain both institutions and potentially affect customers if not managed well.
What does it mean for the banking sector?
Successfully recapitalised banks are emerging with stronger balance sheets, improved lending capacity and increased confidence among investors and customers.
Those that falter risk shrinking in influence, consolidation or exit, reshaping Nigeria’s banking landscape.
Source: Twitter
As the March deadline nears, the story of recapitalisation is also about resilience, strategic adaptation and the fight to stay relevant in a more demanding financial environment.
Nigeria’s banking story in 2026 will be defined not just by numbers raised but by how institutions navigate the profound changes imposed by the recapitalisation drive.
The coming weeks will reveal which lenders rise, which combine strengths and which could fade from the frontline of the nation’s financial system.
7 Nigerian banks face licence downgrades as deadline nears
Legit.ng earlier reported that Nigeria’s banking sector is entering a critical moment as the Central Bank of Nigeria (CBN) drives its sweeping recapitalisation programme toward a March 31, 2026, deadline.
Designed to create bigger, stronger and more resilient lenders, the reform is already reshaping strategies across the industry.
While many banks are scrambling to raise fresh capital to retain their current licence categories, industry sources say at least seven lenders are considering scaling down their licences, signalling a strategic recalibration rather than outright distress.
Source: Legit.ng
