The Nigerian banking sector has reached a pivotal milestone, as at least five financial institutions have successfully met the capitalisation thresholds set by the Central Bank of Nigeria (CBN) nearly nine months ahead of the March 2026 deadline.
Leading the pack is Access Bank, which crossed the N500 billion benchmark for international commercial banks through a N351 billion Rights Issue. The bank’s parent company, Access Holdings, confirmed that its paid-up capital now stands at N600 billion—N100 billion above the minimum requirement.
Zenith Bank followed closely, announcing that it had raised N350.4 billion via a combination of a public offer and rights issue. Its total share capital now stands at N614.65 billion, giving it a buffer of over N114 billion beyond the CBN’s stipulated minimum.
Ecobank Nigeria, which falls into the national bank category, has also reached its N200 billion capital target. Despite this, Fitch Ratings noted that Ecobank is still working to meet its 10% total capital adequacy ratio. In May 2025, the bank’s parent company, Ecobank Transnational Incorporated, raised an additional $125 million through an extension of its existing $400 million bond issuance.
Among non-interest banks, Lotus Bank and Jaiz Bank have also confirmed compliance. Lotus Bank stated that it had exceeded the N20 billion capital base for national non-interest banks even before the new rules were introduced. Jaiz Bank recently listed N10.04 billion from its private placement after obtaining approvals from the CBN, the Securities and Exchange Commission (SEC), and the Nigerian Exchange Group (NGX).
The recapitalisation directive, issued by the CBN in March 2024, requires commercial banks with international licences to shore up their capital to N500 billion, national banks to N200 billion, and regional banks to N50 billion. Non-interest national and regional banks must reach N20 billion and N10 billion respectively.
With several banks still below the target, industry analysts expect a wave of capital-raising activities in the second half of 2025. Institutions like GTCO (Guaranty Trust Holding Company) are already in the market. GTCO is seeking an additional $100 million from the international capital market to complement the N209 billion it raised in 2024. The group also plans to list on the London Stock Exchange’s main market as part of its strategy to improve global investor visibility.
First Bank Holdings has signaled plans to raise N350 billion through a private placement by Q2 2025. Once completed, the bank would hold N748 billion in paid-up capital.
However, several tier-2 and tier-3 banks, including Fidelity, FCMB, Sterling, Stanbic IBTC, and UBA, are still working toward filling a combined N733.7 billion gap. Wema Bank has made notable progress through its N150 billion rights issue.
Meanwhile, banks like Union Bank, Polaris Bank, and Keystone Bank, now under CBN control, have not publicly declared recapitalisation strategies. Unity Bank, currently undergoing a merger with Providus Bank, has received a N700 billion financial accommodation from the apex bank, but the new entity will still need to raise funds to retain its national banking license.
As the deadline draws near, mergers and acquisitions (M&As) are increasingly being viewed as viable options, especially for smaller tier-3 banks. Rating agency Fitch Ratings has predicted that M&As or license downgrades are likely outcomes for banks that fail to meet the recapitalisation thresholds.
Foreign-backed banks like Standard Chartered and Citibank Nigeria are expected to comply easily, given the financial backing of their global parent companies.
Analysts at Afrinvest maintain a positive outlook for the banking sector, citing anticipated earnings growth and continued balance sheet optimisation. CardinalStone has also noted that CBN’s tighter regulations—such as the requirement to exit forbearance loans—are likely to strengthen long-term bank resilience and investor confidence.
As the CBN recapitalisation drive enters its final phase, the coming months will be decisive for banks racing to meet compliance and maintain their market positions in an increasingly competitive financial landscape.
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