Recapitalisation: Mergers, Acquisitions Loom as 13 Banks Face Uncertainty Ahead of March 31 Deadline
- 13 banks strive to meet Central Bank of Nigeria’s new capital thresholds by March 2026 deadline
- Industry experts express optimism, noting many banks are well-prepared for recapitalisation challenges
- Potential mergers loom for non-compliant banks as alternative capital-raising strategies are explored
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
With the March 31, 2026, recapitalisation deadline set by the Central Bank of Nigeria drawing closer, uncertainty hangs over 13 banks still working to meet the new minimum capital thresholds.
At the close of the latest Monetary Policy Committee meeting, CBN Governor Olayemi Cardoso disclosed that 20 banks have fully satisfied the revised capital requirements.
Source: Twitter
Another 13 lenders, he said, are at advanced stages of compliance, raising hopes that widespread disruption may yet be avoided.
Still, industry observers warn that the coming weeks could determine whether Nigeria’s banking landscape remains stable or undergoes another round of consolidation.
Analysts see industry resilience
Management consultant Boniface Chizea described the progress recorded so far as impressive, especially when compared with past capital hikes that triggered panic and sweeping mergers, according to a Punch report.
According to him, many analysts had feared a dramatic shake-up similar to earlier reforms that forced banks into hurried combinations.
Instead, most institutions appear to have prepared in advance, tapping internal reserves and capital buffers to strengthen their positions.
The outcome, he noted, suggests that the systemic shock once anticipated may not materialise at the scale initially feared.
Mergers still on the table
Despite the optimism, Chizea acknowledged that lenders unable to cross the regulatory line may have little alternative but to merge. In any consolidation, he stressed, depositor protection must remain paramount.
Bank customers, he argued, should not bear the consequences of capital shortfalls through restricted access to deposits or service disruptions. Any merger arrangement must therefore prioritise financial stability and public confidence.
He also hinted that, given the scale of the capital increase, regulators could consider extending the deadline to ease pressure on weaker institutions.
Quiet conversations behind closed doors
Chief Executive of Arthur Steven Asset Management, Tunde Amolegbe, believes merger discussions may already be taking place discreetly.
While no formal announcements have surfaced, he noted that such negotiations are often conducted privately until agreements are firm.
He recalled the consolidation era under former CBN Governor Charles Soludo, when the regulator facilitated combinations among struggling banks to preserve financial stability.
That precedent, Amolegbe suggested, remains an option if certain institutions fail to meet the target before the deadline.
Beyond mergers, he identified alternative capital-raising routes. Some banks may pursue private placements, seeking injections from institutional investors and high-net-worth individuals.
Others could explore licence downgrades, aligning their operations with lower capital categories permitted under the framework.
The likelihood of forced consolidation, he added, largely depends on whether the CBN stands firm on the March deadline or grants additional time.
Many banks “already there”
Ayokunle Olubunmi, Head of Financial Institutions Ratings at Agusto & Co, offered a more reassuring outlook. According to him, several banks described as being at advanced stages have already secured the required funds.
In many cases, he explained, the money has been deposited with the regulator and is undergoing verification. That suggests the majority may ultimately secure approval before the cut-off date.
He clarified, however, that the recapitalisation update excludes three banks currently under regulatory intervention. Those institutions face separate supervisory processes and more complex challenges beyond capital adequacy.
New capital benchmarks
Under the revised framework, banks with international licences must raise minimum paid-up capital to N500 billion, while national banks are required to meet a N200 billion threshold before March 31, 2026.
Regional commercial and merchant banks must hold N50 billion. Non-interest banks are expected to maintain N20 billion for national operations and N10 billion for regional licences.
As the clock ticks, the coming weeks will reveal whether Nigeria’s banking sector closes this chapter with stability or enters another era of strategic mergers and structural change.
Source: Twitter
Unity–Providus merger surpasses CBN N200bn target
Legit.ng earlier reported that the proposed merger between Unity Bank Plc and Providus Bank Limited has crossed a major regulatory milestone, exceeding the N200 billion minimum capital requirement set by the Central Bank of Nigeria for a national banking licence.
In a statement released on Wednesday, February 18, 2026, Unity Bank confirmed that the combined capital base of the two lenders now surpasses the recapitalisation threshold.
Unity Bank also dismissed reports suggesting that the merger process had stalled.
Source: Legit.ng
