With the March 31, 2026 deadline fast approaching, Nigerian banks are making a final push to comply with the recapitalisation requirements set by the Central Bank of Nigeria, as the regulator prepares to issue a major update on the exercise this week.
Industry findings indicate that the majority of lenders have either met or are close to meeting the new capital thresholds, while a handful are resolving outstanding regulatory and structural matters. Senior officials at the apex bank disclosed that a comprehensive status report is expected by Tuesday or Wednesday, amid optimism that the exercise will be largely concluded within the stipulated timeline.
The recapitalisation programme, introduced in March 2024, mandates banks to significantly boost their capital base, with international commercial banks required to meet a minimum threshold of N500bn, alongside lower requirements for other licence categories.
Speaking after the 304th Monetary Policy Committee meeting in Abuja, CBN Governor Olayemi Cardoso expressed confidence in the sector’s progress, stating that most institutions are on track to meet the deadline.
“And quite frankly, I expect it to conclude within that stipulated time. It is expected,” he said, while noting that a few banks are still finalising strategic options, including potential mergers and consolidations.
Cardoso revealed that the banking sector has already raised substantial capital under the initiative. As of February 19, 2026, total verified and approved capital stood at N4.05tn, with N2.90tn (71.6 per cent) sourced domestically and $706.84m (N1.15tn) representing foreign inflows.
According to him, the strong mix of local and international participation reflects growing investor confidence in Nigeria’s financial system. “This balance… signals broad investor engagement and confidence in the sector,” he added.
Despite the progress, a small number of institutions are yet to fully complete the process. Delays linked to an ongoing merger between two banks have slowed final compliance, although insiders suggest the issues may be resolved within the week. Another bank is also expected to meet the requirement before the deadline.
Uncertainty, however, persists around three banks currently under regulatory intervention. The apex bank has clarified that these institutions are being treated as special cases, given their unique legal and structural challenges, and are not expected to follow the same recapitalisation timeline as others.
Addressing this category, Cardoso emphasised the CBN’s commitment to ensuring stability. “We remain actively engaged with all relevant stakeholders to ensure an orderly and credible outcome while maintaining financial stability,” he said.
He also reassured customers of the safety of their deposits, noting that affected institutions continue to operate under strict regulatory oversight. “Depositor funds… remain secure,” he affirmed.
Financial analysts say the recapitalisation drive has exceeded early expectations, particularly given initial concerns about the scale of funding required. Agusto & Co described the exercise as largely successful so far.
Its Head of Financial Institutions Ratings, Ayokunle Olubunmi, noted that most banks have already raised the necessary funds and are simply undergoing verification by the regulator.
“It’s not that they are still in the market looking for funds. The funds are with the CBN—they’re just providing documentation,” he said, adding that domestic investors played a dominant role in the capital mobilisation.
As the deadline draws closer, attention now turns to the CBN’s imminent announcement, which is expected to confirm the final status of banks and potentially reshape the structure of Nigeria’s banking sector through consolidation and strengthened capital buffers.