How Nigerian Banks Are Raising Billions To Meet CBN Recapitalisation Rules
By FIDELUS ZWANSON
Banks Race to Meet New Capital Thresholds
NIGERIA’S banking industry is nearing the final phase of compliance with the Central Bank of Nigeria’s (CBN) recapitalisation directive, as lenders intensify efforts to raise fresh capital ahead of the March 2026 deadline.
Announced in March 2024, the policy significantly increased minimum paid-up capital requirements across banking categories for the first time in two decades. International commercial banks are now required to hold ₦500 billion, national banks ₦200 billion, regional banks ₦50 billion, and merchant banks ₦50 billion, while non-interest banks face revised thresholds ranging from ₦10 billion to ₦20 billion.
The CBN said the reforms were aimed at strengthening financial system stability, improving banks’ resilience to economic shocks, and enabling them to better support economic growth, particularly amid foreign exchange volatility and rising credit risks.
Tier-One Banks Lead the Push
So far, 23 banks have met the new requirements, led largely by tier-one international lenders. Zenith Bank crossed the ₦500 billion mark following a heavily oversubscribed public offer that raised ₦350.46 billion, pushing its capital base to ₦614.65 billion.
Access Bank became the first lender to comply after raising ₦351 billion through a rights issue in late 2024, lifting its capital above ₦600 billion. Guaranty Trust Holding Company followed with a two-phase capital programme, raising over ₦575 billion through a public offer and rights issue to bring GTBank’s capital to ₦504.04 billion.
First Bank of Nigeria met the threshold through a mix of equity issuance, private placement and divestment of its merchant banking subsidiary, while United Bank for Africa crossed the line after completing the second tranche of its rights issue.
Diverse Capital-Raising Strategies
Other banks adopted alternative approaches. Fidelity Bank raised ₦259 billion through a private placement, while Sterling Bank combined rights issues, public offers and private placements to close its capital gap.
Among national banks, Ecobank Nigeria, Premium Trust Bank, Stanbic IBTC and Wema Bank have also achieved compliance through rights issues, group-level capital injections and private placements.
Non-interest and merchant banks, including Jaiz Bank, TAJBank and Greenwich Merchant Bank, have similarly met their revised capital requirements.
Market Confidence Remains Strong
Market analysts say the successful fund-raising exercises highlight investor confidence in Nigerian banks and the depth of the capital market. With most banks now compliant, the recapitalisation drive is expected to strengthen balance sheets, deepen market liquidity and reduce the likelihood of forced mergers.
