2026 Bank Recapitalisation: The Winners, The Mergers & The Red Zone

By OBI DAVIES

Nigeria’s 2026 Bank Recapitalisation Enters the Final Phase

WITH the 31st March 2026 deadline fast approaching, Nigeria’s banking sector is undergoing its most significant structural shake-up in more than a decade. The Central Bank of Nigeria’s (CBN) recapitalisation directive has moved beyond speculation into execution, reshaping balance sheets, ownership structures and long-term strategies across the industry.

Contrary to early headlines suggesting widespread non-compliance, industry data as of January 2026 shows that about 22 of Nigeria’s 34 licensed banks have effectively secured their operating licences under the new capital regime, signalling stronger-than-expected progress.

Understanding the New Capital Thresholds

The CBN’s framework sets strict minimum paid-up capital requirements:

• ₦500 billion for international banks

• ₦200 billion for national banks

• ₦50 billion for regional banks

• ₦20 billion for non-interest banks

A key condition is that retained earnings cannot be counted. Only fresh paid-up capital qualifies, forcing banks to raise real funds rather than rely on accounting buffers.

Banks That Have Crossed the Line

Nigeria’s largest lenders have led the compliance drive. Access Bank, Zenith Bank, GTBank, UBA, First Bank and Fidelity Bank have all surpassed the ₦500 billion threshold, firmly securing their international banking licences.

At the national banking level, FCMB, Wema Bank, Standard Chartered and Citibank have met the ₦200 billion requirement. FCMB is still pursuing additional capital to upgrade to an international licence.

Several mid-tier institutions — Stanbic IBTC, Sterling Bank, Providus Bank, Globus Bank and Premium Trust Bank — have also cleared their respective capital hurdles, reinforcing stability within the sector’s middle tier.

Mergers, Downgrades and Strategic Realignments

Recapitalisation has triggered consolidation. Unity Bank and Providus Bank are concluding a merger expected to produce a new top-ten lender. Titan Trust Bank has completed its integration with Union Bank, significantly strengthening its capital base.

Elsewhere, Nova Bank opted to downgrade to a regional licence, a move analysts describe as strategic rather than distress-driven, allowing the bank to focus on niche, high-value markets.

Non-Interest Banks Hold Their Ground

Islamic banks — Jaiz, Taj and Lotus — have all met the ₦20 billion requirement, reinforcing the growing relevance of non-interest banking in Nigeria’s financial ecosystem.

What It Means for Customers

For customers, the final stretch of recapitalisation points to a leaner but stronger banking system. Banks still below the threshold face last-minute mergers or private equity injections, while depositors are expected to benefit from improved transparency, stronger governance and better-capitalised institutions.