In the first half of 2025, Nigeria’s banking sector has undergone a transformative recapitalization exercise, with financial institutions collectively raising over N2.5 trillion in fresh capital through a combination of rights issues, private placements, and other financial instruments. This aggressive capital-raising effort is a direct response to the Central Bank of Nigeria’s (CBN) directive to strengthen the capital base of banks, ensuring their resilience against domestic and global economic challenges while positioning them to support the nation’s ambitious economic growth agenda.
The figures, reported in the 20th Nigeria Banking Sector Report 2025, titled “ACT-BOLD: Beyond a Trillion Dollar Economy” by Afrinvest, underscore the scale and urgency of this recapitalization drive. The report highlights that while several banks have successfully met the new capital thresholds, others are still navigating the process, with some exploring mergers and acquisitions as viable strategies to achieve compliance. This exercise, which has a deadline of March 31, 2026, marks a pivotal moment for Nigeria’s banking industry as it seeks to fortify its financial foundations and contribute to the country’s broader economic aspirations.
Background: The CBN’s Recapitalization Mandate
The push for recapitalization was initiated by the Central Bank of Nigeria under the leadership of Governor Olayemi Cardoso, who announced new minimum capital requirements in March 2024. The directive was issued to address the erosion of banks’ financial strength caused by the devaluation of the naira against major global currencies since the last major recapitalization exercise in 2005. That earlier exercise, led by then-CBN Governor Charles Soludo, raised the minimum capital base for banks from N2 billion to N25 billion, consolidating the banking sector and reducing the number of banks from 89 to 25.
The current recapitalization mandate reflects the CBN’s recognition of the changing economic landscape and the need for a robust banking sector capable of supporting Nigeria’s economic growth. The naira’s significant depreciation over the years has diminished the real value of banks’ capital, limiting their ability to absorb shocks, finance large-scale projects, and compete effectively on the global stage. To address these challenges, the CBN introduced tiered capital requirements based on the type of banking license held:
Commercial Banks with International Authorization: N500 billion
Commercial Banks with National Authorization: N200 billion
Commercial Banks with Regional Authorization: N50 billion
Non-Interest Banks with National Authorization: N20 billion
Non-Interest Banks with Regional Authorization: N10 billion
These thresholds aim to ensure that banks have sufficient capital to withstand economic volatility, support critical sectors such as agriculture, infrastructure, and manufacturing, and enhance their competitiveness in the global financial market. The recapitalization exercise is also a key component of the CBN’s broader strategy to bolster financial stability and align the banking sector with the federal government’s ambition to transform Nigeria into a trillion-dollar economy.
The Recapitalization Landscape in 2025
According to the Afrinvest report, the banking sector has made significant strides in meeting the new capital requirements. At least four banks—Access Corporation, Zenith Bank, Ecobank, and Lotus Bank—have already surpassed the CBN’s thresholds, demonstrating their ability to mobilize substantial resources in a relatively short period. Other banks are on track to meet the requirements before the June 2026 deadline, while a few are exploring alternative strategies, such as mergers and acquisitions, to achieve compliance.
The recapitalization exercise has led to a significant expansion of banks’ share bases, with over 55 billion new shares issued collectively. The banks that have completed their capital-raising efforts include Access Bank, Zenith Bank, Guaranty Trust Bank (GTBank, now GTCO), Wema Bank, Stanbic IBTC, Premium Trust Bank, and Jaiz Bank. Together, these institutions have raised approximately N1.4 trillion in fresh capital, bolstering their financial buffers and positioning them for long-term growth.
Access Bank: Leading the Charge
Access Bank, one of Nigeria’s Tier-1 lenders, was the first to surpass the N500 billion capital requirement for banks with international authorization. The bank achieved this milestone through a N351 billion rights issue completed in late 2024. This significant capital injection has strengthened Access Bank’s balance sheet, enabling it to expand its operations both domestically and internationally. The bank’s proactive approach to recapitalization underscores its commitment to maintaining its position as a leading financial institution in Nigeria and across the African continent.
Zenith Bank and GTCO: Crossing the International Threshold
Zenith Bank and Guaranty Trust Bank (GTCO) have also met the N500 billion capital requirement for international license holders. Both banks have leveraged their strong market positions and investor confidence to raise substantial funds. Zenith Bank, known for its robust corporate governance and consistent profitability, has reinforced its capital base through a combination of rights issues and other financial instruments. Similarly, GTCO’s audited results for the first half of 2025 confirm that its capital position exceeds the CBN’s threshold, positioning it as a key player in Nigeria’s banking landscape.
Stanbic IBTC and Wema Bank: National License Success
Stanbic IBTC, a commercial bank with a national license, raised N148.7 billion through a rights issue in June 2025, pushing its capital base beyond the required N200 billion. This achievement reflects the bank’s strategic focus on maintaining financial stability and supporting Nigeria’s economic growth. Wema Bank, another national license holder, disclosed in September 2025 that it had raised N150 billion, bringing its total capital to N214.7 billion. Wema’s success highlights the growing investor appetite for Nigerian banks and their ability to mobilize capital in a challenging economic environment.
Jaiz Bank: Non-Interest Banking Milestone
Jaiz Bank, Nigeria’s leading non-interest bank, has also met the CBN’s capital requirements for non-interest banks with a national license. The bank reported a capital position of N28.67 billion in its first-half 2025 results, surpassing the N20 billion threshold. Jaiz Bank’s achievement underscores the growing importance of non-interest banking in Nigeria and its ability to attract capital from investors seeking ethical and Sharia-compliant financial products.
Banks Still in the Process
While several banks have successfully met the CBN’s capital requirements, others are still working to achieve compliance. Major lenders such as United Bank for Africa (UBA), First Bank Holdings, Fidelity Bank, Sterling Bank, FCMB, and Union Bank are in various stages of their capital-raising efforts. These banks are employing a range of strategies, including rights issues, private placements, and public offerings, to bridge the gap between their current capital positions and the CBN’s thresholds.
UBA’s Ambitious Plan
At UBA’s 65th Annual General Meeting, Chairman Tony Elumelu assured shareholders that the bank is on track to meet the N500 billion capital requirement for international license holders before the third quarter of 2025. UBA’s strong brand equity and extensive network across Africa position it well to attract the necessary capital. The bank’s leadership has emphasized its commitment to supporting Nigeria’s economic growth and maintaining its status as one of the continent’s leading financial institutions.
First Bank Holdings: Closing the Gap
First Bank Holdings, with a capital position of N398 billion as of the first half of 2025, is planning a private placement to address the shortfall and meet the N500 billion requirement. As one of Nigeria’s oldest and most established banks, First Bank has a strong track record of navigating economic challenges and mobilizing resources. The bank’s recapitalization efforts are expected to strengthen its position as a key driver of financial inclusion and economic development.
Economic Context and Implications
The recapitalization exercise is occurring against the backdrop of Nigeria’s broader economic challenges, including inflation, currency depreciation, and external vulnerabilities. The Afrinvest report notes that the banking sector grew by 15% in real terms in the first quarter of 2025, making it one of the top 10 contributors to Nigeria’s GDP. This growth reflects the sector’s resilience and its critical role in driving economic activity.
However, the report also cautions that without broad-based reforms, the banking sector’s contributions may remain concentrated in services-based industries, limiting its impact on inclusive economic growth. For instance, sectors such as agriculture, infrastructure, and manufacturing require significant financing to achieve sustainable development, but banks have historically been cautious about lending to these areas due to perceived risks. The recapitalization exercise is expected to address this challenge by providing banks with the financial capacity to support high-impact sectors and drive long-term economic growth.
Strategic Importance of Recapitalization
The CBN’s recapitalization directive is a strategic effort to strengthen Nigeria’s banking sector and position it as a cornerstone of the country’s economic transformation. By raising their capital base, banks will be better equipped to absorb economic shocks, finance large-scale projects, and compete in the global financial market. The initiative also aims to restore confidence among international investors, who have expressed concerns about the financial stability of Nigerian banks in light of the naira’s depreciation.
Moreover, the recapitalization exercise aligns with the federal government’s ambition to transform Nigeria into a trillion-dollar economy. A strong and well-capitalized banking sector is essential for mobilizing the resources needed to achieve this goal. By increasing their capital base, banks can expand their lending capacity, support job creation, and drive innovation in key sectors.
Challenges and Opportunities
While the recapitalization exercise presents significant opportunities for Nigeria’s banking sector, it also comes with challenges. Raising large amounts of capital in a relatively short period is no small feat, particularly in an economic environment characterized by high inflation and currency volatility. Some banks may struggle to attract sufficient investor interest, leading them to explore mergers and acquisitions as alternative strategies.
Mergers and acquisitions could reshape the banking landscape, potentially leading to greater consolidation and efficiency. However, they also raise concerns about job losses, reduced competition, and the concentration of financial power in fewer institutions. The CBN will need to carefully monitor these developments to ensure that the recapitalization exercise achieves its intended objectives without unintended consequences.
On the opportunity side, the recapitalization exercise is expected to enhance the global competitiveness of Nigerian banks. With stronger capital bases, banks can expand their operations across Africa and beyond, positioning Nigeria as a financial hub in the region. The increased capital will also enable banks to invest in technology and innovation, improving service delivery and financial inclusion.
Conclusion
The recapitalization of Nigeria’s banking sector in 2025 represents a critical step toward building a more resilient and competitive financial system. With over N2.5 trillion raised in fresh capital, banks are demonstrating their commitment to meeting the CBN’s requirements and supporting the nation’s economic growth. While challenges remain, particularly for banks still in the process of raising capital, the overall outlook for the sector is positive.
The success of leading banks such as Access Bank, Zenith Bank, GTCO, Stanbic IBTC, Wema Bank, and Jaiz Bank highlights the sector’s potential to drive Nigeria’s economic transformation. As the March 2026 deadline approaches, the banking industry is poised to emerge stronger, more stable, and better positioned to contribute to the government’s trillion-dollar economy ambition. By addressing the challenges and seizing the opportunities presented by this recapitalization exercise, Nigerian banks can play a pivotal role in shaping the country’s economic future.
