💰Race Against Time: Only 14 Nigerian Banks Cross Recapitalisation Hurdle Ahead Of 2026 Deadline

WITH just six months left until the 31st March 2026 deadline set by the Central Bank of Nigeria (CBN) for banks to recapitalise, fresh concerns are mounting across the financial sector as only 14 out of the country’s 24 licensed commercial banks have met the new capital thresholds.

The recapitalisation directive, issued in 2024, demands a substantial increase in banks’ minimum capital based on their operational licences. Under the new framework, commercial banks with international authorisation must shore up capital to ₦500 billion, national banks are required to raise ₦200 billion, while regional lenders must maintain a minimum of ₦50 billion.

Unlike past exercises, the CBN narrowed the definition of “capital base” to include only paid-up share capital and share premium, excluding reserves and retained earnings. This change forced banks back into the capital market to raise fresh funds—marking the first major recapitalisation drive since 2009 under former CBN Governor Sanusi Lamido Sanusi, when the global financial crisis exposed structural weaknesses in Nigeria’s banking sector. At the time, toxic loan portfolios linked to oil and gas as well as the stock market crash had pushed banks into a liquidity crisis, necessitating bailouts, mergers, and the creation of the Asset Management Corporation of Nigeria (AMCON).

Current State of Play

So far, 14 banks have successfully met the target, while others—especially mid-tier players—are still scrambling to close the gap before the deadline. Analysts note that while the “Systemically Important Banks” (SIBs) appear secure, smaller banks face an uphill task.

Among the big five lenders, Zenith Bank, Access Bank, and Guaranty Trust Bank (GTCO) have surpassed the threshold, boasting capital bases of ₦614.65 billion, ₦594.9 billion, and ₦504 billion respectively. First Bank of Nigeria (FBN Holdings) requires only about ₦70 billion more, a shortfall analysts describe as “easily achievable.” Meanwhile, United Bank for Africa (UBA) is actively raising over ₦157 billion through rights issues and a subsequent public offer.

Other notable players include:

• Stanbic IBTC Bank: Successfully raised ₦181.4 billion, pushing it beyond the ₦200 billion requirement for national banks.

• Wema Bank: Raised ₦40 billion through a rights issue but still requires ₦100 billion. Plans are underway for additional capital via a mix of public offers and private placements.

• Sterling Holding Company: Raised ₦100 billion earlier in 2025 and is preparing to secure an additional ₦200 billion through various instruments, including rights issues and public offerings.

• Ecobank Nigeria and Standard Chartered Bank Nigeria are both expected to recapitalise to maintain their national banking licences.

Mergers, Acquisitions, and Rescue Efforts

The recapitalisation wave is already triggering restructuring and possible acquisitions. Unity Bank, for instance, is in the middle of a regulator-induced acquisition by Providus Bank, a move analysts say will prevent collapse and strengthen both institutions. A similar playbook was used when Titan Trust Bank acquired Union Bank.

Keystone Bank is reportedly stable but still needs to raise ₦200 billion. Industry insiders suggest merger talks are ongoing to help it meet the requirement. Polaris Bank, currently under AMCON, faces a ₦150 billion shortfall and is also expected to pursue merger or acquisition options given its ownership structure and capital needs.

Market Response and Regulatory Confidence

The Securities and Exchange Commission (SEC) revealed in late 2024 that nine banks raised ₦1.682 trillion in fresh capital through 12 market applications, underscoring investor interest in the sector despite macroeconomic headwinds.

The CBN, for its part, remains confident that the recapitalisation deadline is achievable. Officials argue that the exercise will position Nigerian banks to play a stronger role in financing big-ticket transactions—particularly in line with the Federal Government’s vision of building a US$1 trillion economy.

What Lies Ahead

While the stronger banks are poised to cement dominance, mid-sized lenders face difficult choices: raise capital at scale, seek strategic partnerships, or risk being swallowed by larger players. Analysts caution that delays could create a last-minute rush, putting stress on investor appetite and potentially driving up the cost of capital.

At the same time, industry watchers point out that the recapitalisation is not merely a regulatory requirement but also a litmus test for the resilience of Nigeria’s banking system in an economy grappling with inflation, volatile exchange rates, and fluctuating oil revenues.

As the countdown ticks toward March 31, 2026, the banking landscape is set for a shake-up. Those who cross the finish line early will enjoy expanded market confidence and operational leverage, while laggards may face the harsh reality of consolidation or collapse.