As the Central Bank of Nigeria (CBN) pushes for a stronger financial sector with its new recapitalisation directive, no fewer than 10 Nigerian banks are set to meet, and in some cases exceed, the N500 billion minimum capital requirement for international banking licences.
The deadline for compliance is March 31, 2026. Analysts say the move is critical to bolstering the resilience of the banking system and positioning Nigerian lenders to drive economic growth as the country targets a $1 trillion GDP.
Tier-1 Banks Lead the Charge
Two of Nigeria’s biggest banks, Zenith Bank Plc and Access Holdings Plc, have already crossed the CBN’s N500 billion capital threshold. Zenith Bank currently boasts a combined share capital and share premium of N614.65 billion, while Access Holdings follows closely with N594.90 billion.
Other Tier-1 banks, including UBA, GTCO, FBN Holdings, and Ecobank — are actively working to meet the requirement through phased capital raising strategies. Most have secured shareholder approval and begun the process of fresh equity injections.
According to financial analysts, the banks most likely to meet the CBN’s benchmark are those with large market share, consistent profitability, and attractive investment profiles.
“The CBN’s new recapitalisation framework is stricter, excluding retained earnings and other components of shareholders’ funds. It mandates that only paid-up capital and share premium will count,” Ibrahim said.
Mergers, Downgrades, and Equity Injections
To comply with the directive, banks are exploring several options, including mergers and acquisitions (M&As), equity capital raises, and in some cases, voluntary downgrades from international to national licences.
However, industry watchers have flagged potential challenges. The persistent devaluation of the naira has put pressure on banks’ foreign currency capital adequacy, while the temporary suspension of dividend payments, introduced by the CBN to boost capital buffers, may dampen investor appetite.
“There’s concern that a surge in new share issuances could lead to dilution and put downward pressure on bank stock prices,” Igho noted. “There could also be short-term liquidity constraints as capital is locked into bank equity.”
Banks Positioned to Scale Recapitalisation Hurdle
Based on current progress and public disclosures, the following banks are widely expected to meet the recapitalisation target:
- Zenith Bank Plc
- Access Holdings Plc
- United Bank for Africa (UBA)
- Guaranty Trust Holding Company (GTCO)
- FBN Holdings Plc
- Ecobank Nigeria (backed by ETI’s Pan-African footprint)
- Stanbic IBTC Holdings Plc
- Fidelity Bank Plc
- FCMB Group Plc
- Wema Bank Plc
While some of these institutions are targeting the N500 billion mark for international status, others like Stanbic IBTC and Wema Bank are prioritizing the N200 billion requirement for national licences, with the flexibility to scale up if needed.
Caution Around Economic Impact
Experts have cautioned that while the recapitalisation programme is necessary, it must be managed carefully to avoid overconcentration of credit among large corporations and to ensure that small and medium enterprises (SMEs) are not left behind.
There are also concerns that unless inclusive banking is prioritised, the broader economy may not feel the full benefits of the capital surge.
Nigeria Trails in Africa’s Banking Capital Rankings
Despite the recapitalisation efforts, Nigerian banks still lag behind their continental counterparts. A recent report by Proshare shows that Standard Bank (South Africa) leads the continent with $13 billion in tier-1 capital, while Nigeria’s top banks — First Bank, Access Bank, Zenith Bank, and UBA — each hover around $2 billion.
Looking Ahead
As the 2026 deadline approaches, Nigeria’s banking sector is in the midst of a historic transition. For the banks that are taking bold steps now, the recapitalisation drive could be a launchpad to continental leadership and global competitiveness.
But for others lagging behind, time is running out , and the cost of inaction may be steep.
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