Race Against Time: Meet Nigerian Banking Giants Scrambling to Meet CBN Recapitalisation Target
- Some tier one banks are still actively engaged in capital raising programmes to beat the deadline for Nigerian banks to recapitalise
- These banking giants have a month's deadline to recapitalise or have their licences downgraded
- However, some small lenders have already scaled the recapitalisation hurdle ahead of the March 31, 2026 deadline
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Central Bank of Nigeria’s (CBN) directive for a banking sector recapitalisation, set with a deadline of March 31, 2026, has created a clear divide in the industry.
While a select group of banks has already scaled the hurdle, a significant number of Tier-1 institutions are still scrambling to raise the required N500 billion minimum capital base.
Source: Twitter
This news analysis examines the current landscape, detailing the banks that have yet to meet the requirement and linking their challenges to the success stories of their counterparts.
The struggling banking giants
The CBN's recapitalisation policy, announced in March 2024, mandates a significant increase in the paid-up capital of commercial banks to fortify the financial system against domestic and external shocks.
For banks with international licenses, which include all Tier-1 banks, the new minimum capital is N500 billion.
As of August 2025, several of these banking behemoths are still racing to raise the required funds..
While the CBN has not released a definitive public list of non-compliant banks, financial reports and market analyses paint a clear picture.
Major players like Guaranty Trust Holding Company (GTCO), Ecobank Nigeria, United Bank for Africa (UBA), First Bank of Nigeria Holdings (FBNH), and Fidelity Bank are all actively engaged in various capital-raising strategies.
The pressure on these institutions is immense. Failure to meet the deadline could result in a downgrade of their banking license, mergers with stronger entities, or even liquidation, a stark reminder of the 2004 banking sector consolidation that saw the number of banks drastically reduced.
The frontrunners
In sharp contrast to the banks still in the race, a small group of nine banks has successfully met the CBN's new capital requirements.
Their success provides a blueprint for others and signals a consolidation of power within the banking industry. These institutions have demonstrated strategic foresight and strong investor confidence.
The nine banks that have reportedly scaled the hurdle are:
- Access Bank Plc
- Zenith Bank Plc
- Wema Bank Plc
- Lotus Bank
- Jaiz Bank
- Providus Bank
- Stanbic IBTC
- Greenwich Merchant Bank
- PremiumTrust Bank
Access Bank and Zenith Bank are particularly noteworthy. As leading Tier-1 banks, they were among the first to announce that they had surpassed the N500 billion mark, leveraging their strong capital base and successful rights issues.
Success stories amid strategies
Their swift compliance has reinforced their positions as market leaders.
Interestingly, the list also includes national and non-interest banks like Wema Bank, Lotus Bank, Jaiz Bank, Providus Bank, and PremiumTrust Bank, which have met their respective capital requirements.
Their success highlights the varied strategies being employed across the sector, including rights issues, private placements, and mergers.
Implications for the financial landscape
The dichotomy between the compliant and non-compliant banks is a key indicator of the future of Nigeria's financial sector.
The CBN's recapitalisation policy is designed to create a more resilient and robust banking system.
For the banks still struggling, the path ahead is fraught with challenges, including potential loss of market share, a scramble for investors, and the possibility of forced mergers.
The success of the frontrunners, however, is a testament to the effectiveness of the policy and the potential for a stronger banking industry. As the March 2026 deadline approaches, the pressure on the remaining banks will intensify.
Source: Getty Images
The coming months are likely to see a flurry of financial activities, from rights issues to private placements, as these institutions make a final push to avoid regulatory sanctions and secure their place in Nigeria's evolving financial landscape.
The outcome of this high-stakes race will shape the future of banking in the country for years to come.
Recapitalisation: 3-year-old Nigerian bank meets CBN's target
Legit.ng earlier reported that PremiumTrust Bank, which began operations in 2022, has met the N200 billion capital requirement for commercial banks with a national licence, seven months to the deadline.
CBN announced a new recapitalisation target of N500 billion for Nigerian banks with an international licence, N200 billion for national license, N150 billion for non-interest banks, and N50 billion for regional banks.
The apex bank set the deadline for the financial institutions to recapitalise by March 31, 2026.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
