Lagos, Nigeria – January 18, 2026 — Nigeria's banking industry is experiencing one of its most significant overhauls in recent history, driven by the Central Bank of Nigeria's (CBN) ambitious recapitalization program. Launched in March 2024, the initiative mandates commercial banks to substantially increase their paid-up capital bases by March 31, 2026, to enhance resilience against economic shocks, improve lending capacity for large-scale projects, and support the nation's aspiration to achieve a $1 trillion economy. As the deadline approaches—with just over two months remaining—progress has accelerated, with a growing number of banks securing their required licenses across international, national, and regional categories.
The recapitalization addresses longstanding vulnerabilities exposed by inflation, naira devaluation, currency fluctuations, and global pressures. By raising minimum capital thresholds, the CBN aims to create stronger institutions capable of withstanding risks, expanding credit to the real sector, and fostering financial inclusion. The requirements vary by license type: international banks (authorized for cross-border operations) must achieve ₦500 billion in paid-up capital; national banks (operating nationwide but restricted internationally) require ₦200 billion; and regional banks (limited to specific zones) need ₦50 billion. Merchant banks also face ₦50 billion, while non-interest (Islamic) banks require ₦20 billion for national and ₦10 billion for regional authorizations.
This tiered structure allows banks flexibility in strategy: some pursue international expansion for broader market access, others focus on domestic dominance, and smaller players opt for regional specialization to maintain efficiency. The exercise excludes retained earnings, emphasizing fresh equity injection through rights issues, private placements, public offers, or mergers. As of mid-January 2026, the CBN reports that 20 commercial banks have met the requirements, up from 16 in late 2025 and 19 in early January, reflecting a surge in compliance. Analysts anticipate further progress, with potential mergers and final raises in the coming weeks.
Banks Securing International Licenses
International licenses enable operations across borders, facilitating trade finance, remittances, and pan-African growth. These banks must meet the highest threshold of ₦500 billion. As of early 2026, the following institutions have successfully complied and secured or retained their international authorizations:
- Access Bank Plc
- Fidelity Bank Plc
- First Bank of Nigeria Ltd
- Guaranty Trust Bank (GTBank)
- United Bank for Africa (UBA)
- Zenith Bank Plc
These tier-one lenders have led the charge, leveraging strong investor confidence and strategic capital raises. For instance, Access Holdings and Zenith Bank executed massive rights issues and public offers, injecting hundreds of billions in fresh equity. Fidelity Bank, despite starting from a lower base, completed targeted placements that propelled it across the line. GTBank benefited from holding company restructuring and market optimism, while UBA and First Bank followed suit with oversubscribed offers. Their compliance not only ensures continuity but positions them to expand regionally and compete globally, supporting Nigeria's economic diversification.
Banks Securing National Licenses
National licenses permit nationwide operations without international privileges, requiring ₦200 billion in paid-up capital. Several mid-tier and specialized banks have achieved this milestone, focusing on domestic strength:
- FCMB (First City Monument Bank) – Actively raising funds to potentially upgrade to international status
- Wema Bank
- Standard Chartered Bank (Nigeria)
- Citibank Nigeria
- Stanbic IBTC Bank
- Sterling Bank
- Globus Bank
- Premium Trust Bank
These banks have demonstrated agility through innovative fundraising, including rights issues and private placements. Wema Bank, for example, aggressively boosted its base via digital growth and investor support. Stanbic IBTC drew on its South African parentage for stability. FCMB remains in pursuit of the international tier, with shareholder approval for up to ₦400 billion in raises. Additional names like Providus Bank (potentially merging with Unity Bank) and others appear in compliance lists, highlighting the sector's dynamism.
Broader Sector Impact and Outlook
The recapitalization has spurred mergers, such as ongoing talks between Unity Bank and Providus Bank, expected to create a stronger top-10 player. Non-interest banks like Jaiz, Lotus, and TAJBank have met their lower thresholds (₦20 billion national), promoting inclusive finance. Regional and merchant banks have also complied, ensuring specialized services persist.
CBN Governor Olayemi Cardoso has emphasized that the program safeguards depositors, boosts confidence, and aligns the sector with macroeconomic goals. As of January 15, 2026, around 20–22 banks (out of 34 commercial ones) are compliant, with the rest racing to conclude raises or mergers. No extensions have been granted, reinforcing the deadline's firmness.
For customers, this means safer deposits, potentially better services from capitalized institutions, and reduced systemic risks. Investors see opportunities in recapitalized stocks, many of which have appreciated significantly. Businesses anticipate improved access to credit for infrastructure and growth projects.
The exercise echoes the 2004 reform under Charles Soludo, which consolidated the sector from dozens to a handful of robust players. Today, it promises a more resilient financial system amid Nigeria's economic challenges. With the March 31, 2026, deadline looming, the coming months will likely see final consolidations, further strengthening the foundation for a trillion-dollar economy.
As Nigeria navigates inflation and currency pressures, a fortified banking sector stands as a cornerstone for sustainable development, credit expansion, and investor confidence.
