Nigeria's banking industry is demonstrating remarkable resilience and strategic foresight as it approaches the final phase of the Central Bank of Nigeria's (CBN) mandatory recapitalisation exercise. With the deadline set for March 31, 2026, a significant portion of the sector has already crossed the finish line, amassing a formidable combined capital base.
Early Compliance Signals Sector Strength
Disclosures from financial institutions reveal a compelling narrative of preparedness. Out of the country's 37 commercial, merchant, and non-interest banks, 21 have already met or exceeded the revised minimum capital requirements. This early achievement, well ahead of schedule, underscores a collective drive to fortify balance sheets against economic headwinds. The total capital secured so far stands at a staggering ₦5.142 trillion, reflecting renewed investor confidence and a robust foundation for future growth.
The recapitalisation drive, initiated by the CBN, aims to strengthen the banking system's capacity to support a larger economy and absorb potential shocks. The fact that more than half of the banks have complied months before the deadline points to the underlying health and liquidity within Nigeria's financial institutions.
International Banks Lead with Massive Capital Bases
In the category for banks with international authorisation, the race has been particularly intense, with six lenders successfully clearing the ₦500 billion minimum capital threshold. Together, these institutions account for an estimated ₦3.28 trillion in capital, dominating the landscape.
Zenith Bank currently leads the pack with approximately ₦614 billion in capital, bolstered by an oversubscribed public offer that raised ₦350.46 billion. Access Bank follows closely, having surpassed the ₦600 billion mark after a successful ₦351 billion rights issue, making it the first bank to hit the benchmark. Other major players include:
- Guaranty Trust Bank (GTBank): Capital now at roughly ₦504 billion following a two-phased equity programme.
- First Bank of Nigeria and United Bank for Africa (UBA): Both have pushed their capital bases above ₦500 billion.
- Fidelity Bank: Crossed the line with about ₦564 billion after completing a ₦259 billion private placement.
National and Regional Banks Fortify Positions
The momentum is equally strong among national and regional lenders. Eight banks in the national category have met the ₦200 billion minimum requirement, contributing an estimated ₦1.6 trillion to the sector's total capital. This group includes Ecobank Nigeria, Stanbic IBTC, PremiumTrust Bank, Citibank Nigeria, Standard Chartered Bank Nigeria, Providus Bank, Wema Bank, and Globus Bank.
Stanbic IBTC achieved compliance through an oversubscribed rights issue, while PremiumTrust Bank's early compliance, just three years after commencing operations, is seen as a significant feat. Wema Bank utilized a combination of a rights issue and private placement to exceed the benchmark.
At the regional level, Nova Bank has successfully met the ₦50 billion requirement, opting to downgrade from a national to a regional licence. Merchant banks have also kept pace, with Greenwich Merchant Bank, Rand Merchant Bank Nigeria, and FSDH Merchant Bank each meeting their ₦50 billion threshold, bringing total capital in that segment to an estimated ₦150 billion.
Consolidation and Strategic Mergers Reshape Landscape
Beyond capital raises, the recapitalisation drive is accelerating consolidation within the industry, a move expected to create stronger, more competitive entities. Union Bank has completed its merger with Titan Trust Bank, and Providus Bank is set to merge with Unity Bank. The latter merger is anticipated to create Nigeria's ninth-largest lender by assets.
Financial analysts view this wave of consolidation and capital raising positively. Experts at Meristem Research highlight that the broad progress reflects the underlying strength of Nigeria’s banking system, particularly in liquidity and risk management. They argue that stronger capital buffers will enhance banks’ ability to absorb shocks and support credit expansion, especially for large corporates and critical infrastructure projects.
With the March 2026 deadline looming, Coronation Asset Management anticipates more capital-raising activities in the coming weeks as remaining banks finalise their strategies. While investor sentiment has fluctuated, the consensus among analysts is that this recapitalisation drive will ultimately stabilise bank earnings and reposition the sector for sustainable, core lending-led growth in the coming years.
The race is not yet over, but the early movers have decisively reshaped the competitive landscape of Nigerian banking, setting a new standard for financial strength and stability.
