With exactly 296 days to the March 31, 2026, deadline set by the Central Bank of Nigeria (CBN) for commercial banks to raise their capital, operators in the industry are entering a critical phase of what has been described as the most consequential regulatory shakeup in over a decade.

The ambitious exercise has set the financial sector on edge, triggering a flurry of boardroom strategy sessions that have seen some financial institutions completely raise the required amount for their banks, engage in business combination talks, and share sales in the capital market.

As the countdown intensifies, banks face a stark choice: bulk up or risk being pushed to the margins of a fast-evolving financial landscape.

Under the new framework, the CBN mandates banks with international licences to beef up their capital base to a minimum of N500 billion, from N50 billion, previously; national banks to have a minimum of N200 billion, from the N25 billion it used to be, and regional banks to maintain minimum capital base of N50 billion, from N10 billion.

While some institutions have already met the threshold, others are advancing to the second phase of capital raising, with a few still weighing their options.

For instance, among the Tier 1 banks, Zenith Bank Plc successfully raised N290 billion through a combined rights issue and public offer, which was oversubscribed by 160 percent. This brings its total qualifying capital to N614.65 billion—comfortably above the N500 billion benchmark. Similarly, Access Bank also completed its N351 billion rights issue, offering 17.77 billion shares at N19.75 each. With this, Access Bank has met the CBN requirement, pushing its capital to N594.90 billion.

Also, Guaranty Trust Bank launched a dual-track capital programme valued at N400.5 billion, and has already raised N209.41 billion through its public offer. As of now, GTB is entering its second phase of capital raising.

The United Bank for Africa (UBA) recently concluded a rights issue that was oversubscribed by N251 billion, which pushed UBA’s capital to N355.2 billion, leaving it with a N144.8 billion gap which the bank is optimistic would be closed before the end of the year.

Providus Bank, an innovative and tech-driven financial institution which recently acquired Unity Bank, is making serious progress with its business combination deal. It is presently awaiting necessary regulatory approvals for it to launch the second phase of its recapitalisation exercise.

Fidelity Bank is also making significant progress. It has already raised N127 billion and has received regulatory approval for a N231.97 billion private placement. This followed a N40.98 billion rights issue and a 100.78 percent subscribed public offer of N188.38 billion. As it stands, Fidelity’s capital is at N305.56 billion, and it’s projected to hit the N500 billion mark after the next phase of its recapitalisation programme.

In the same vein, Stanbic IBTC Holdings and Sterling Financial Holdings Company are steadily moving forward. Stanbic completed a N148.7 billion private placement and awaits the outcome of its public offer. The bank’s capital currently stands at N109.26 billion but it’s expected to rise to N257.96 billion. Sterling raised N67.5 billion in a rights issue, which was 103 percent subscribed, and anticipates reaching a post-recapitalisation capital of N262.26 billion.

FCMB is addressing a capital shortfall of N374.71 billion. So far, it has raised N147.5 billion through a private placement and completed a N110.90 billion rights issue, bringing its capital to N266.23 billion. A source at the bank told THISDAY that the financial institution is upbeat in meeting the required capital base before the deadline.

Wema Bank, which holds a national banking license, recently closed a N150 billion rights issue. An additional N50 billion private placement has been approved by shareholders, which could push Wema’s capital to around N267 billion.

FirstBank’s parent company, FBN Holdings, has raised N187.6 billion from a 25 percent oversubscribed rights issue and is now preparing a N350 billion private placement. With its current capital at N251.34 billion, a successful placement would raise its total to N601.82 billion.

Among the smaller players, Premium Trust Bank has raised N177 billion, successfully covering a N174 billion capital gap, and it’s now awaiting regulatory confirmation. Jaiz Bank, a non-interest financial institution has also taken steps to beef up its capital just like its peers.

Deputy Governor, Financial System Stability, CBN, Philip Ikeazor, recently explained that some banks have completed and met the requirements, while others are doing theirs in two phases.

“So they (the banks) have been to the market once and are coming back again. We have about one year to go, and as we progress, maybe there could be a few marriages as some people tend to leave it towards the tail end.

“So far so good, the big banks are among those that have met and have their plans clear that they will meet the deadline. This is a very robust plan that allows you to step down your licence category if you think you will have a problem. So, you don’t have to be a national bank if you cannot afford N200 billion; you can afford to be a regional bank. So, one of them has indicated that they intend to be a regional bank because the plan accommodates everybody,” he added.

Commenting on the exercise, Managing Director/Chief Executive Officer of the Development Bank of Nigeria, Dr. Tony Okpanachi, advised commercial banks to ensure that with increased capitalisation, stronger balance sheets, they channel their funds to ventures and sectors that not only offer commercial returns but also support developmental goals, especially micro, small and medium enterprises (MSMEs).

Also, the Head of Financial Institutions Ratings at Agusto & Co., Ayokunle Olubunmi, noted that the recapitalisation drive has reflected strong shareholder support, as most of the over N2.5 trillion raised in the past 14 months have come from rights issues. He said the exercise has added a buffer to the financial system, putting banks in a stronger position to withstand macroeconomic shocks and better support economic growth.

Olubunmi also highlighted the importance of the initiative in Nigeria’s broader vision to become a $1 trillion economy.

“Banks will be critical if Nigeria is to attain its GDP targets. With stronger capital bases, they are better placed to scale and drive inclusive economic development,” he said.

Team Lead for Capital Markets at PAC Capital Limited, Ejovi Okiekpakpo, echoed similar views, describing the recapitalisation programme as timely and necessary.

According to him, “The recapitalisation exercise will give banks the balance sheet strength to support developmental financing, absorb shocks, and underwrite bigger transactions.” (THISDAY)