Nigeria’s banking sector is entering the final stretch of its ambitious recapitalisation drive, with lenders intensifying efforts to meet the Central Bank of Nigeria (CBN)’s strict deadline of March 31, 2026. This regulatory initiative, launched in March 2024, requires banks to significantly increase their minimum paid-up share capital to bolster financial stability, enhance lending capacity, and better withstand economic shocks amid Nigeria’s evolving macroeconomic environment.
The CBN announced the recapitalisation programme through a circular dated March 28, 2024, marking a substantial upward revision of capital thresholds for various categories of banks. The new requirements are as follows:
- International commercial banks: ₦500 billion (previously ₦50 billion).
- National commercial banks: ₦200 billion (previously ₦25 billion).
- Regional commercial banks: ₦50 billion (previously ₦10 billion).
- National merchant banks: ₦50 billion (previously ₦15 billion).
- National non-interest banks: ₦20 billion (previously ₦10 billion).
- Regional non-interest banks: ₦10 billion.
The compliance window spans 24 months, commencing April 1, 2024, and concluding on March 31, 2026, with no indications from the CBN of any extension. Banks failing to meet these thresholds by the deadline face potential consequences, including licence downgrades, restrictions on operations, or in extreme cases, revocation of banking licences to safeguard the overall financial system.
As of mid-February 2026, significant progress has been recorded. Reports from reliable sources, including market analysts at Proshare and various financial publications, indicate that over 20 banks—with some lists citing up to 21 or 23—have already met or confirmed compliance with their respective capital requirements. This represents a substantial portion of the sector’s licensed institutions (approximately 34 commercial banks, plus merchant and non-interest banks).
Notable examples of banks that have achieved compliance include major players such as:
- First Bank of Nigeria (via First HoldCo Plc), which has met the ₦500 billion threshold for international authorisation.
- Fidelity Bank, following a successful ₦259 billion private placement.
- Sterling Bank, Ecobank, and others that have publicly announced fulfillment of their targets.
- Non-interest banks like TAJBank and Summit Bank, which have surpassed requirements ahead of schedule.
The drive has mobilised significant fresh capital—estimates suggest around ₦2.5 trillion or more has been raised through a combination of rights issues, private placements, public offers, strategic investments, and other mechanisms. For instance, tier-1 banks (often referred to as “FUGATS”—First Bank, UBA, GTBank, Access, Zenith) and other leading institutions have largely cleared their hurdles months in advance, demonstrating robust execution.
In the most recent updates, activity has shifted from aggressive fundraising to regulatory verification and confirmation. FCMB Group, for example, is currently undergoing CBN capital verification to confirm attainment of the ₦500 billion mark for international banks. A positive outcome would serve as official regulatory endorsement of compliance. Similarly, other institutions are focusing on final validations rather than new capital raises.
For banks still working toward compliance—particularly some tier-2 and smaller entities—options are narrowing as the deadline nears (less than 50 days remain as of mid-February 2026). Strategies include:
- Private equity injections from high-net-worth individuals or strategic investors (often pre-qualified as “fit and proper” by the CBN).
- Business restructuring or licence category adjustments (e.g., shifting from national to regional authorisation to lower the capital bar).
- Mergers and acquisitions to pool resources and meet thresholds collectively.
Analysts note that while most systemically important banks are on track, a handful may face challenges, prompting discussions around potential licence downgrades or closures in non-compliant cases. However, industry sources and CBN updates suggest no immediate cause for alarm, with the sector largely positioned for post-recapitalisation stability.
The recapitalisation initiative aligns with broader goals to strengthen Nigeria’s banking system. CBN Governor Olayemi Cardoso and other officials have emphasized that enhanced capital buffers will improve resilience, deepen credit availability to the private sector (including SMEs and manufacturing), and support economic growth targets, such as achieving a $1 trillion economy. Experts from institutions like the World Bank have echoed this, predicting increased lending and liquidity once the process concludes.
With the deadline fast approaching, the focus remains on final verifications, investor engagements, and regulatory approvals. The successful completion of this exercise is expected to mark a transformative phase for Nigeria’s financial sector, positioning banks to better support national development amid global and domestic pressures.
