CBN Deadline: Meet 12 of Nigeria’s Most Capitalised Banks, GTBank, Zenith, Lead Chart
- Nigeria's banks are accelerating recapitalisation efforts ahead of the March 2026 deadline
- Investor confidence remains steady amid cautious optimism for overall sector progress
- Regulatory pressure may reshape banking landscape, favouring stronger institutions over weaker ones
Nigeria’s banking sector is gathering momentum as listed lenders intensify efforts to meet new recapitalisation requirements ahead of the March 2026 deadline.
Banking stocks rallied in 2025 as GTCO, Zenith, UBA and 10 others lifted combined market capitalisation to N16.14 trillion, driven by the CBN’s recapitalisation push ahead of March 2026.
The surge represents an 86.8 percent, N7.5 trillion jump, giving banks 16.23 percent of NGX’s N99.38 trillion equity value overall market.
Analysts say the overall outlook remains positive, even as concerns linger over a handful of banks that appear to be lagging.
Source: Twitter
Adnori, a financial analyst firm, urged investors to stay cautiously optimistic, stressing that the broader picture points to steady progress across the industry.
While not all banks are moving at the same pace, the firm believes most listed lenders are on track to meet regulatory expectations within the stipulated timeframe.
Recapitalisation push gains traction
The recapitalisation drive, triggered by tighter regulatory standards and the need to strengthen balance sheets, has pushed banks to explore multiple funding options.
Equity issuances, rights offerings, retained earnings, and strategic asset sales have emerged as preferred routes as lenders work to shore up capital buffers.
Market watchers note that several tier-one banks have already made significant headway, leveraging strong earnings performance and investor confidence to raise fresh capital.
These early movers are seen as setting the tone for the rest of the sector, helping to calm fears of widespread capital shortfalls.
Mixed pace among lenders
Despite the overall progress, Adnori flagged concerns about a few banks that may struggle to close their capital gaps as quickly as peers.
These lenders face headwinds ranging from weaker profitability and higher operating costs to limited access to affordable funding.
However, analysts caution against broad pessimism. According to Adnori, the number of potentially lagging banks remains small relative to the entire industry, and even these institutions still have time to recalibrate their strategies before the March 2026 cutoff.
Investor sentiment holds firm
Investor confidence has so far held steady, supported by improving macroeconomic signals and expectations of stronger earnings in the medium term.
Banking stocks have shown resilience, reflecting market belief that the recapitalisation exercise will ultimately strengthen the sector rather than destabilise it.
Adnori advised investors to focus on fundamentals, particularly asset quality, capital adequacy trends, and management execution.
Banks with clear recapitalisation plans and transparent communication are likely to enjoy sustained investor support, while those with unclear roadmaps may face increased scrutiny.
Regulatory pressure and opportunities
Regulators have maintained firm oversight, signalling little tolerance for missed deadlines.
According to a report by ThisDay, this pressure has added urgency to fundraising efforts but has also opened doors for consolidation, partnerships, and strategic investments within the sector.
Source: Getty Images
Analysts suggest that the recapitalisation drive could reshape Nigeria’s banking landscape, favouring stronger institutions and encouraging weaker players to merge or restructure. In the long run, this is expected to result in a more resilient and competitive financial system.
Outlook: Measured confidence
Adnori’s message to the market is clear. Caution is warranted, but panic is not. With more than a year to the deadline, most listed banks appear capable of meeting recapitalisation targets if current momentum is sustained.
As the process unfolds, investors are expected to reward discipline and clarity while penalising delays and uncertainty.
For now, the banking sector’s recapitalisation story remains one of measured confidence, steady progress, and watchful optimism as March 2026 draws closer.
How top Nigerian banks conquered CBN recapitalisation test
Legit.ng earlier reported that 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.
The goal: strengthen balance sheets, improve resilience, and ensure the financial system can weather local and global shocks.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
