Nigeria’s banking sector is showing early signs of compliance with the Central Bank of Nigeria’s (CBN) ambitious recapitalisation directive, as at least five financial institutions have crossed the new minimum capital thresholds — nearly a year ahead of the March 2026 deadline.
The recapitalisation drive, introduced in March 2024, is part of the CBN’s broader strategy to strengthen financial system resilience, improve credit access, and enhance Nigeria’s readiness for a more globally competitive financial sector.
CBN’s Recapitalisation Framework
Under the updated framework, banks with international banking licenses are required to raise their minimum capital to ₦500 billion. National banks are expected to meet a ₦200 billion threshold, while regional banks must attain at least ₦50 billion in capital.
For non-interest banks, the requirements are ₦20 billion and ₦10 billion for national and regional licenses respectively. The CBN set a March 2026 deadline, urging institutions to leverage various capital-raising strategies, including rights issues, private placements, debt issuance, and mergers.
Access, Zenith, Ecobank, Lotus, and Jaiz Lead Compliance
Access Bank became the first Tier-1 bank to meet the new ₦500 billion capital threshold after its parent company, Access Holdings, secured regulatory approvals for a ₦351 billion rights issue in late 2024. The bank’s capital base subsequently rose to ₦600 billion — well above the regulatory minimum.
Zenith Bank followed, successfully raising ₦350.4 billion through a combined rights issue and public offer, bringing its total capital to ₦614.65 billion.
Among national banks, Ecobank Nigeria has also crossed the required ₦200 billion threshold. Fitch Ratings confirmed the bank’s compliance while noting that it still faces challenges in meeting the total capital adequacy ratio of 10%. To close the gap, Ecobank Transnational Incorporated, its parent company, raised an additional $125 million by tapping into its existing $400 million bond issuance.
Non-interest banks are also recording early wins. Lotus Bank confirmed it had exceeded the ₦20 billion capital base even before the CBN directive was issued. Similarly, Jaiz Bank announced in early 2025 that it had achieved the required level through a successful ₦10.04 billion private placement, which was later listed on the Nigerian Exchange Group.
Other Banks Accelerate Capital-Raising Plans
Several other banks have now entered the second phase of their capital mobilisation efforts.
Guaranty Trust Holding Company (GTCO) recently announced plans to raise an additional $100 million via the London Stock Exchange’s main market. This move follows a ₦209 billion public offer in 2024 and forms part of GTCO’s broader recapitalisation strategy for its Nigerian banking subsidiary.
GTCO also revealed plans to transition from Global Depository Receipts to a full listing of its ordinary shares on the London Stock Exchange, a move aimed at increasing global investor access.
Meanwhile, First Bank’s parent company, First Bank Holdings, disclosed in its FY 2024 earnings presentation that it intends to raise ₦350 billion in new capital, with a private placement being considered. If successful, this will push its total capital to ₦748 billion.
Wema Bank is also well on its way to compliance through a ₦150 billion capital raise via a rights issue and special placement.
However, some banks — including Union Bank, Polaris Bank, and Keystone Bank (now under the Federal Government's control) — have yet to announce concrete recapitalisation plans. Unity Bank, which is currently merging with Providus Bank, has received ₦700 billion in financial accommodation from the CBN, but the new entity will still need additional funds to qualify as a national bank.
Outlook for Smaller and Foreign-Owned Banks
Industry analysts and credit rating agencies say consolidation is inevitable for smaller, Tier-3 banks. Fitch Ratings, in particular, has flagged the likelihood of mergers and acquisitions (M&A) and license downgrades among banks unable to meet the capital thresholds independently.
Banks such as Globus Bank, Titan Trust Bank, Nova Bank, Optimus Bank, and Premium Trust Bank are seen as potential targets or initiators of M&A activities in the coming months, although no formal announcements have been made.
That said, foreign-owned banks like Standard Chartered Nigeria and Citibank are viewed as less vulnerable, due to their access to capital from global parent institutions.
Analysts Project Positive Sector Outlook
Despite the capital gaps that remain, analysts are largely optimistic about the trajectory of Nigeria’s banking sector.
Afrinvest Research noted in its H1 2025 review that combined capital shortfalls among banks like Fidelity, FCMB, Stanbic IBTC, Sterling, and UBA still stand at over ₦730 billion, but efforts are clearly underway.
“We anticipate further momentum as banks accelerate recapitalisation efforts, which should bolster investor sentiment within a more stable regulatory landscape,” Afrinvest stated.
CardinalStone also echoed this view, highlighting the regulatory push for capital discipline through recent CBN directives on forbearance exposures and dividend restrictions.
“By enforcing tougher capital rules and removing forbearance leeway, the CBN is guiding the sector toward greater asset quality and transparency. While this might delay dividends in the short term, it positions banks for sustainable long-term growth,” the firm said.
With less than nine months to the 2026 deadline, Nigeria’s banking sector is already seeing early winners in the recapitalisation race, while others intensify capital-raising campaigns. As the CBN strengthens oversight and investor confidence grows, the recapitalisation drive appears poised to reshape the financial landscape — potentially triggering a new wave of consolidation, innovation, and global engagement.