The Central Bank of Nigeria (CBN) set a deadline of March 31, 2026, for the country’s banks to recapitalize. It was learned that just 14 of the 24 lenders with commercial banking licenses have accomplished this goal.
According to Daily Independent, the CBN gave the country’s banks two years to satisfy new minimum capital requirements based on their levels of authorization last year. Commercial banks with international licenses need to raise their capital to N500 billion, national banks need N200 billion, and regional banks need N50 billion.
The CBN further defined capital base for the purpose of the recapitalisation exercise to include: paid-up share capital and share premium, excluding other reserves and retained earnings, a move that compelled all banks back to the market, the first after the one undertaken by Sanusi Lamido Sanusi, the then CBN governor in the aftermath of the global financial crisis that significantly weakened Nigerian banks and caused a liquidity problem, due to a significant growth in non-performing loans or exposure to the oil and gas and capital market sectors.
To salvage the business and the economy, they had to sell these bad loans to the Asset Management Corporation of Nigeria (AMCON) at a higher price, put in more money, and start forced mergers and acquisitions.
Our correspondent talked to people in the industry over the weekend. They said that only 14 of the banks have reached their goal so far, but most of the systematically important companies are close to reaching theirs.
Last November, Dr. Emomotimi Agama, the Director General of the Securities and Exchange Commission (SEC), revealed that nine banks that went to the market got N1.682 trillion in new capital in 12 applications. Fidelity Bank, Guaranty Trust Holding Company (GTCO), Zenith Bank, First City Monument Group, Access Holdings Company, FBN Holdings, and UBA Plc are some of them.
Guaranty Trust Bank, Access Bank, and Zenith Bank are thought to have fulfilled or even exceeded their goals. UBA and First Bank are likely to do the same before March 31, 2026.
Zenith Bank is said to be in the lead with an N614.65 billion war chest. Access Bank, on the other hand, has N594.9 billion, thanks in part to last year’s N351 billion from its successful rights offering. After its parent business put in more money, Guaranty Trust Bank currently has a capital base of N504 billion.
First Bank, on the other hand, needs to put in around N70 billion, which industry experts say is easy for the country’s oldest bank, which was founded in 1894.
United Bank for Africa is currently in the capital market looking for a new N157.843 billion through rights to existing shareholders. This is the bank’s second time doing this under the current system.
Africa’s global bank is also likely to make an offer to the general public to sign up, which would end its recapitalization program.
Stanbic IBTC Bank is thought to have reached its goal of N200 billion after a successful exercise that brought in N181.4 billion, which put it above the minimum threshold for its category. Wema Bank, on the other hand, is said to need an extra N100 billion in capital, having raised N40 billion through a rights issue. The bank wants to get the money it needs through a combination of a public offer, a rights issue, and other methods.
Ecobank Transnational Incorporated, which is situated in Lome, Togo, is going to give its Nigeria branch more money so that it can act as a national bank, like Standard Chattered Bank Nigeria.
In the first half of 2025, Sterling Holding Company raised about N100 billion through a mix of private placement and rights issue. Shareholders have already approved a planned N200 billion fresh capital injection through a mix of rights issues, private placements, and public offerings.
Analysts think that the pending acquisition of Unity Bank by Providus Bank, which is doing well, will preserve Unity Bank from falling under, just like the one between Titan Trust and Union Bank of Nigeria.
The CBN is hopeful that Keystone Bank Limited will stay stable and bring in the needed N200 billion. They are also trying to attract potential partners with a stronger capital base. They are also reportedly thinking about merging with or buying another player, which is likely for banks that are having trouble meeting the new capital requirements.
Polaris Bank is a financial institution owned by the Asset Management Corporation of Nigeria (AMCON). It is not yet clear how the corporation plans to raise the nearly N150 billion it needs to stay afloat. Because of this, many people think that an M&A option is still the best way to go, especially since the CBN has promised that its recapitalization process will move forward.
All things considered, analysts and industry watchers are optimistic that the recapitalization process will allow the banks to do their jobs as financial intermediaries, especially when it comes to big transactions that were once only handled by foreign banks in the US$1 trillion economy that the federal government has in mind.
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