With just 200 days left before the Central Bank of Nigeria’s (CBN) March 31, 2026 recapitalisation deadline, Nigerian banks are ramping up efforts to meet the stringent capital requirements. From exploring mergers and acquisitions to raising fresh capital through rights, issues and public offers, the industry is abuzz with strategic moves aimed at strengthening balance sheets and preserving market share.

The countdown has triggered a wave of activity across the financial sector, as lenders race not only to comply with regulatory demands but also to position themselves competitively for the future of banking in Africa’s largest economy.

At the beginning of the exercise, the estimated capital requirement gap was about $4.1 trillion, and so far the banks have raised $2.8 trillion.

The new capital requirement which stipulated N500 billion for international banks, N200 billion for national, and N50 billion for regional, were unveiled as part of CBN’s push to strengthen balance sheets and build resilience in the face of persistent macroeconomic shocks.

So far, at least 11 banks have crossed the finish line. Access Holdings, Zenith Bank, GTBank, Ecobank, Stanbic IBTC, Wema Bank, Jaiz Bank, Lotus Bank, Providus Bank, Greenwich Merchant Bank, and Premium Trust Bank have all met the capital requirement for the operating licence they hold.

GTBank recently raised N365.85 billion through a capital injection from its parent company, GTCO, lifting its paid-up capital from N138 billion to N504 billion.

Also, Access Bank and Zenith Bank, both tier-one players, secured their positions earlier through rights issues and public offers.

These early movers have effectively removed uncertainty about their status, sending reassuring signals to investors and depositors.

Other institutions are in the process of raising funds through equity markets, private placements, or asset sales.

Today, the United Bank for Africa Plc (UBA) is in the middle of a rights issue, which it recently extended to September 19, 2025, after securing approval from the Securities and Exchange Commission (SEC). Market watchers are optimistic that the tier-one bank would meet its target comfortably.

Similarly, Fidelity Bank has raised more than N273 billion and is planning a private placement to close the remaining gap.

FCMB which has already raised N144.6 billion, is pursuing further capital through divestments from subsidiaries like Credit Direct and FCMB Pensions, alongside offshore placements.

FSDH recently sold its stake in PAL Pensions, redeploying proceeds to shore up its balance sheet.

Some banks are making tactical adjustments to navigate the higher thresholds. Nova Bank, which once considered applying for a national licence, has opted to remain a regional player, limiting its requirement to N50 billion.

Providus Bank is in the process of acquiring Unity Bank, a move that will elevate it from regional to national status.

Analysts believe the recapitalisation programme was progressing smoothly than many had feared.

Head of Financial Institutions Ratings at Agusto & Co, Ayokunle Olubunmi, noted that most banks are on track, with some even ahead of schedule. He added that the heavy lifting has been done locally.

In a chat with THISDAY, he said: “Most are moving in line with their capital plans, and many are even ahead of schedule. Encouragingly, most of the funds have come from Nigerians, not foreign investors. Out of the roughly N4 trillion required, about N3 trillion has already been raised, largely from domestic investors. By December, we’ll have a clearer picture.”

A report by SBM Intelligence titled ‘Capital, Competition, and Consolidation’ released recently stated: “The ongoing recapitalisation drive, mandated by the Central Bank of Nigeria, is set to reshape the competitive landscape. Most Tier-2 banks have responded proactively, employing a mix of public offers, rights issues, private placements, and strategic divestments to meet or exceed new capital thresholds.

This sector-wide commitment to financial resilience and regulatory compliance is expected to enhance the stability of the banking system, improve loss absorption capacity, and position Nigerian banks to support the country’s ambition for a $1 trillion economy.

“Looking ahead, the sector is likely to witness further consolidation, with mergers and strategic alliances among mid-tier banks becoming more prevalent. This will not only create larger, more competitive institutions but also foster innovation and expand access to credit for businesses and consumers. However, the risk of marginalizing smaller players and the potential for integration challenges must be carefully managed to ensure that the benefits of recapitalisation are broadly shared across the economy.”

For the Head of Africa Financial Services, McKinsey & Company, Mayowa Kuyoro, the recapitalisation would produce stronger institutions with stronger balance sheets.

“We are going to have institutions that have capital for growth and capital for expansion. So, whether you are expanding into new customer segments or product verticals, what is going to happen is that we are going to see a lot more innovations in that space because the institutions have the capital to grow,” she added.

Also, McKinsey’s Managing Partner in Lagos, Frederick Twum, stated that the Nigerian banking sector was at a critical juncture, with higher capital requirements and digital disruption driving a new era of consolidation and innovation.

“Nigeria’s banking market sector has been shaped by macroeconomic shocks, regulation, and maturing digital disruption. Key trends include higher capital requirements driving consolidation, fintechs targeting underserved SMEs, and open banking unlocking embedded finance.

“In addition, foreign exchange revaluation gains are fading—and are increasingly getting ring-fenced. Banks will be looking for new sources of value. The Nigerian banking sector is at a critical juncture, with higher capital requirements and digital disruption driving a new era of consolidation and innovation,” Twum added. (THISDAY)

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