Nigeria’s banking sector has entered the most critical phase of its sweeping recapitalisation programme, with lenders adopting divergent strategies to meet the new capital requirements set by the Central Bank of Nigeria (CBN) ahead of the March 31, 2026 deadline.
While public attention has largely focused on banks that have already surpassed the ₦500 billion capital threshold required for international banking licences, a growing number of institutions are deliberately pursuing phased recapitalisation strategies. These banks are first securing national licences before gradually building capital buffers toward international status. FCMB Group Plc has emerged as a prominent example of this measured approach, highlighting a strategic divide now shaping the industry.
The recapitalisation framework, announced by the CBN in March 2024, introduced a three-tier licensing structure comprising regional, national and international banks. Under the policy, national banks must maintain a minimum paid-up capital of ₦200 billion, while international banks are required to hold at least ₦500 billion. The reforms are intended to strengthen banks’ balance sheets, improve resilience to economic shocks and enhance the sector’s capacity to finance large-scale projects that support Nigeria’s long-term economic growth.
FCMB reached the national banking threshold in 2024 after successfully raising ₦147.5 billion through an oversubscribed public offer. The offer, which exceeded its target by about 33 per cent and reportedly attracted more than 42,000 investors, pushed the paid-up capital of its banking subsidiary above the ₦200 billion requirement. This milestone secured FCMB’s national banking licence well ahead of the regulatory deadline, easing immediate compliance pressure.
Since then, the group has continued to position itself for a potential transition to international banking status. In October 2025, FCMB launched a second capital-raising exercise of approximately ₦160 billion. This was followed in December 2025 by shareholder approval of a broader ₦400 billion capital-raising mandate, providing flexibility to combine public offers, private placements and selective asset divestments, depending on market conditions.
Analysts warn against interpreting phased capital raising as hesitation. According to a Lagos-based banking analyst, the CBN’s focus is on full compliance by the 2026 deadline rather than the sequence of capital mobilisation. “What matters is that the capital is fully paid up and approved by the regulator by the deadline,” the analyst said.
In contrast, several tier-one lenders have opted for faster, large-scale capital mobilisation. Access Bank, Zenith Bank, Guaranty Trust Bank, United Bank for Africa (UBA), Fidelity Bank and First Bank of Nigeria have all announced capital-raising transactions that lifted their paid-up capital above the ₦500 billion international banking threshold. These moves—often executed through sizeable rights issues, private placements or a combination of equity issuance and asset sales—have delivered early regulatory clarity and stronger market positioning, but not without higher shareholder dilution and exposure to volatile market conditions.
Other banks have chosen to remain firmly within the national banking category. Institutions such as Wema Bank, Stanbic IBTC, Citibank Nigeria and Standard Chartered Bank Nigeria have met the ₦200 billion requirement and opted to retain national licences, reflecting strategic decisions around scale, market focus and the complexity of cross-border operations.
FCMB now sits between these two strategic camps. Having secured its national licence early, the group faces a key decision on whether to complete the journey to international banking status or consolidate its domestic footprint. A senior banking executive confirmed that FCMB, alongside Wema Bank, Standard Chartered and Citibank, has officially secured national licences, with FCMB described as being “in the final sprint” toward the ₦500 billion mark required for an international licence.
Beyond individual institutions, the recapitalisation programme is reshaping the broader banking landscape. It has already triggered mergers, asset sales and licence downgrades, particularly among smaller banks prioritising long-term sustainability over aggressive expansion. Islamic and non-interest banks have largely met their respective capital requirements, underscoring resilience within niche segments of the sector.
Macroeconomic conditions continue to complicate capital-raising efforts. Persistently high inflation, currency volatility and tight global funding conditions have made equity issuance more challenging. In this environment, phased recapitalisation offers banks a way to manage valuation risks and investor sentiment, even as it attracts closer scrutiny from regulators and the market.
As the deadline approaches, investor attention is shifting from capital-raising announcements to confirmed inflows and regulatory approvals. Nigeria’s banking reset is no longer about stated intentions, but about execution. For FCMB and other lenders pursuing phased strategies, the coming months will determine whether they join the ranks of international banks or consolidate their positions as strong national champions in a reshaped financial system.
Nigeria’s banking sector enters the final phase of CBN’s recapitalisation drive as FCMB and other lenders adopt phased strategies to meet new capital thresholds ahead of the 2026 deadline.
Discover more from Ameh News
Subscribe to get the latest posts sent to your email.
