3 Banks to Merge, 23 Scale CBN’s Recapitalisation Hurdle ahead of March Deadline
- Nigeria's banking sector sees 23 banks meet new CBN recapitalisation requirements ahead of the 2026 deadline
- Access Bank and Zenith Bank lead the way in raising significant capital, enhancing their market positions
- CBN warns non-compliant banks of possible downgrades or mergers as recapitalisation aims for a stronger financial system
Nigeria’s banking industry is entering a decisive consolidation phase as 23 deposit money banks have successfully met the Central Bank of Nigeria’s (CBN) new recapitalisation requirements, while three others move toward mergers ahead of the March 31, 2026, deadline.
The development marks a major milestone in the CBN’s ongoing effort to strengthen the resilience, stability, and global competitiveness of the financial system, amid growing economic complexity and rising capital demands.
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CBN’s recapitalisation rules explained
The recapitalisation policy, launched in 2024, introduced higher minimum capital thresholds across banking categories.
Commercial banks with international licences must raise at least N500 billion, national banks N200 billion, and regional banks N50 billion.
Non-interest banks were also assigned specific benchmarks, with national non-interest banks required to raise N20 billion and regional operators N10 billion.
The policy provided a 24-month compliance window, triggering aggressive capital raising, restructuring, and merger talks across the sector.
The exercise echoes the landmark 2004 banking consolidation under former CBN Governor, Prof. Charles Soludo, which reduced the number of banks from 89 to 25 and laid the foundation for a stronger industry.
Access, Zenith, First banks lead capital raises
As of January 14, 2026, 23 banks had crossed the recapitalisation line. Access Bank emerged as an early leader, raising N351 billion through a rights issue and lifting its capital base to N602.8 billion, comfortably above the CBN’s minimum requirement.
Zenith Bank followed closely, raising over N350 billion via a mix of rights issues and public offers, pushing its capital to N614 billion.
First HoldCo also confirmed that its flagship subsidiary, First Bank of Nigeria, has reached the N500 billion threshold through a combination of rights issues, private placements, and the divestment of its merchant banking subsidiary.
National and foreign banks close the gap
Several national banks have also completed their recapitalisation drives. Sterling Bank achieved compliance through targeted capital raises by its parent company, Sterling HoldCo, including a recent public offer exceeding N88 billion.
Wema Bank raised N150 billion through a rights issue, while Citibank Nigeria and Standard Chartered Nigeria met their requirements with backing from their international parent institutions.
Regulatory approvals are currently being finalised for some of the recent public offers by bank holding companies.
Non-interest banks strengthen their footing
Nigeria’s non-interest banking segment also recorded strong compliance. The Alternative Bank (AltBank), Jaiz Bank, TAJBank, and Lotus Bank have all met their new capital thresholds.
AltBank secured its capital injection as early as May 2025, positioning itself as a major force in the non-interest banking space and underscoring the sector’s growing inclusivity.
Mergers, downgrades, and what lies ahead
With the deadline approaching, the CBN has signalled that non-compliant banks may face licence downgrades or be compelled into mergers, without posing immediate risks to depositors.
According to a report by Vanguard, CBN Governor, Olayemi Cardoso, has maintained that the recapitalisation exercise remains on track, describing it as critical to long-term system resilience.
Source: Getty Images
As further capital raises and mergers unfold, the exercise is expected to reshape Nigeria’s banking landscape, producing stronger institutions capable of financing growth and competing globally in the years ahead.
3 Nigerian banks set to merge
Legit.ng previously reported that Nigeria’s banking sector is bracing for another wave of consolidation as at least three bank mergers are expected in early 2026, driven by mounting pressure to meet the Central Bank of Nigeria’s (CBN) new minimum capital requirements.
The anticipated mergers come as the March 31, 2026 recapitalisation deadline draws closer, forcing smaller lenders to pursue strategic combinations to survive intensifying regulatory and market scrutiny.
This projection was disclosed by credit rating agency DataPro in its 2026 Banking Sector Prospects in Nigeria, which outlines both opportunities and risks shaping the industry in the year ahead.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
