Year in Review: How Nigeria’s Banking Giants Conquered CBN Recapitalisation Test
- In June 2025, Nigerian banks were jolted by an announcement by the Central Bank of Nigeria for a new minimum capital requirement
- The apex bank pegged the new recap threshold at N500bn, N200bn, and N10bn for banks with various banking licences
- As the year draws to a close, more than half of the banks have scaled the recap hurdle, while others are still actively racing against time
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
In an era of rising economic headwinds and relentless market pressures, Nigeria’s banking sector has once again found itself at a defining crossroads.
The Central Bank of Nigeria (CBN) has set an ambitious recapitalisation mandate, compelling banks to raise fresh capital by March 31, 2026.
Source: Twitter
The goal: strengthen balance sheets, improve resilience, and ensure the financial system can weather local and global shocks.
As the deadline looms, results paint a picture of triumph, struggle, and transformation.
Under the new regulatory framework, commercial banks with international authorisation must achieve a minimum capital base of ₦500 billion, national banks must hit ₦200 billion, regional banks ₦50 billion, and non-interest banks have their own tiered benchmarks.
According to a report by Legit.ng, the recapitalisation requirement seeks to push Nigerian banks into a stronger competitive position domestically and on the continent.
Banks that have cleared the recapitalisation hurdle
Recent disclosures from the CBN show significant momentum in the recapitalisation process, with 16 banks now confirmed to have met the new capital requirements ahead of the March 2026 deadline.
Among the most prominent institutions that have successfully scaled the CBN’s recapitalisation hurdle:
- Access Holdings (Access Bank) – One of the first to surpass the ₦500 billion requirement for international banks.
- Zenith Bank – Another titan of Nigerian banking, comfortably above the ₦500 billion mark.
- GTBank (Guaranty Trust Holdings Company) – Completed significant capital raises to meet its target.
- Ecobank Nigeria – Crossed the required threshold through public offers and placements.
- Stanbic IBTC Holdings – Benefitted from capital injections and is now compliant.
- Wema Bank – As a national bank, it exceeded the ₦200 billion threshold.
- Providus Bank – A dynamic newer bank that has met its requirements.
- Premium Trust Bank – A remarkable case, emerging as one of the youngest banks to cross its capital hurdle.
- Greenwich Merchant Bank, Lotus Bank, Polaris Bank, Unity Bank, Fidelity Bank, Jaiz Bank, and Union Bank (post-merger with Titan Trust) round up the list of compliant institutions.
This marks a broad cross-section of Nigeria’s diverse banking landscape, from longstanding giants to agile newer players.
Their success stems from rights issues, public offerings, private placements, and strategic mergers or acquisitions. According to a report by Business Elites Africa
Banks still progressing or struggling
Not all banks have crossed the finish line. Several mid-tier and smaller lenders are still actively raising funds to meet their capital requirements. For instance:
- First Bank’s parent, FBN Holdings, has secured significant capital but still has work to do to fully meet the ₦500 billion target.
- FCMB Group continues capital-raising efforts through a major public share offer.
- Sterling Bank is incrementally boosting its capital base but has yet to complete the recapitalisation.
- Standard Chartered Bank and Citibank’s local operations lag considerably behind the capital requirements, and their future in Nigeria remains uncertain if they cannot close their capital gaps.
Such banks face increasing pressure to either raise funds quickly, pursue mergers, or risk licence downgrades, transitions to smaller licence categories, or exit.
Broader effects of the recapitalisation exercise
The recapitalisation initiative is reshaping Nigeria’s banking sector in profound ways.
First, it has bolstered market confidence. Stronger capital bases mean banks are better positioned to absorb financial shocks, support credit growth, and sustain operations even in times of stress.
Second, the capital-raising activities have energised Nigeria’s financial markets.
Rights issues and public share sales have driven significant investment flows, reflecting both domestic and international confidence in select Nigerian banks, a ThisDay report says.
Source: Getty Images
Third, the threat or reality of consolidation, through mergers and acquisitions, suggests the banking landscape may grow leaner but sturdier.
Smaller banks that cannot independently meet capital targets may increasingly look to combine with stronger partners to survive and thrive.
Finally, as capital adequacy strengthens across compliant banks, there is potential for greater lending to critical sectors, manufacturing, agriculture, and infrastructure, fueling broader economic growth.
While risks remain, the recapitalisation exercise is steering Nigerian banking toward deeper resilience and renewed confidence.
"At the end of this, Nigeria's financial sector will come out stronger and globally competitive," Osas Igho, a financial analyst, said.
Banking recapitalisation drives merger fever
Legit.ng earlier reported that the CBN recapitalisation target is set to significantly reshape the country's banking landscape, particularly impacting smaller banks.
The deadline for meeting the new capital requirements is March 31, 2026.
According to reports, two Nigerian banks, one with a regional licence and another with a national licence, have started merger talks, which may be finalised in the coming months.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
