Nigeria’s banking industry is experiencing another historic shift, with the Central Bank of Nigeria (CBN) confirming that fourteen financial institutions have already met the minimum capital requirements ahead of the 2026 recapitalisation deadline. This represents 64.29% compliance among the 23 banks listed on the Nigerian Exchange Limited, a development experts say is reshaping the future of the financial system.
CBN Governor, Olayemi Cardoso, made the announcement on Tuesday, September 23, 2025, at the end of the 302nd Monetary Policy Committee (MPC) meeting in Abuja. He described the progress as a reflection of the sector’s resilience and the determination of Nigerian banks to align with regulatory reforms.
“About 14 banks have met the regulatory capital requirements,” Cardoso disclosed, though he refrained from listing the compliant institutions. The disclosure shows steady momentum since July 2025, when only eight banks had crossed the line.
Background to the Recapitalisation Drive
The CBN in March 2025 raised the minimum capital requirements for banks, setting a 2026 deadline. The directive, regarded as one of the most ambitious reforms since the 2005 consolidation era, aims to strengthen banks’ balance sheets, build shock absorbers against economic turbulence, and position the industry to support President Bola Tinubu’s $1 trillion economy agenda.
Although the CBN has not officially released names, industry reports suggest that tier-1 lenders such as Zenith Bank, Access Bank, Guarantee Trust Bank, United Bank for Africa, and Stanbic IBTC are among those that have met the new requirements.
Expert Perspectives
Financial experts and capital market analysts have reacted to the development, praising the momentum while also flagging risks that regulators must manage.
Dr. Bismarck Rewane, CEO of Financial Derivatives Company, drew a parallel with the 2005 consolidation reforms:
“This is reminiscent of Soludo’s banking revolution of 2005, which reshaped Nigeria’s financial sector. The difference today is that the reforms must prepare Nigerian banks for both domestic resilience and international competitiveness. Early compliance is a sign of strength that can attract new investment flows.”
Professor Uche Uwaleke, Nigeria’s first professor of capital markets, cautioned that recapitalisation comes with trade-offs:
“While recapitalisation enhances stability, it could also trigger mergers and acquisitions that may lead to job losses. Regulators must ensure that reforms protect depositors, sustain financial inclusion, and minimize the social costs of consolidation.”
Investment banker and market strategist, Mrs. Toyin Sanni, pointed out the growing investor interest:
“The recapitalisation exercise is drawing the attention of international investors who want to position in Nigerian banks with regional ambitions. But for latecomers, the cost of raising capital may become steeper as the deadline gets closer.”
Reflection on the Reform Journey
The 2005 reforms under then-CBN Governor Charles Soludo raised capital requirements from ₦2 billion to ₦25 billion, cutting the number of banks from 89 to 25 and creating stronger, pan-African institutions. Two decades later, the current recapitalisation push echoes that transformative era but under tougher global conditions, digital disruption, compliance with Basel standards, and volatile international markets.
For depositors and businesses, the recapitalisation drive means greater security and more lending capacity. For smaller banks, it could mean survival through mergers or strategic alliances. For Nigeria, it signals a step closer to building a robust financial system capable of sustaining economic growth and earning international credibility.
The Road Ahead
With 64.29% compliance already recorded and over a year still to the deadline, the recapitalisation momentum is clear. Yet, the remaining nine banks face tough decisions, merge, raise fresh capital, or risk falling behind. By 2026, Nigeria’s banking landscape will look different, with stronger players positioned to finance large-scale investments, deepen financial inclusion, and drive sustainable growth.
What emerges will not just define the strength of Nigerian banks but also test the foresight of regulators steering one of Africa’s most ambitious financial reform journeys.
CBN Governor Olayemi Cardoso confirms that 14 Nigerian banks “64.29% of the sector” have met 2026 recapitalisation requirements. Experts hail progress but warn of risks to jobs and consolidation.
@2025 The Ameh News: All Rights Reserved
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