Na last minute rush for Nigeria banking sector as only one week remain before Central Bank of Nigeria (CBN) deadline for recapitalisation. As of yesterday, 34 banks don already meet the new minimum capital requirements wey CBN set for different categories of banking licenses.
The Nation newspaper confirm say provisional list wey dem review show say all major banks with international banking licenses, wey control more than 70 percent of the industry, and most national banks don scale the recapitalisation hurdle. CBN go issue final status report next week after March 31, 2026 deadline wey dem set since March 2024.
Experts for the industry say this ongoing recapitalisation process, even though e stricter based on qualifying capital, na the most successful one for Nigeria history. Many experts expect say nearly all banks go clear the apex bank requirement because of the high level of compliance and last-minute efforts wey banks dey make to verify private capital injections.
For this new process, qualifying capital for the minimum requirement na the addition of share capital and share premium, unlike before wey dem dey use shareholders’ funds. The provisional compliance list show say Guaranty Trust Holding Company (GTCO), FCMB Group, Fidelity Bank, Zenith Bank, Access Holdings, First HoldCo and United Bank for Africa (UBA) don surpass the N500 billion minimum capital requirements for their international banking licenses.
The list also reveal say 10 national banks don meet the N200 billion new minimum capital requirements for their operations. These banks include Stanbic IBTC Holdings Plc, Wema Bank Plc, Ecobank Nigeria, Sterling Financial Holdings Company Plc, Premium Trust Bank, Standard Chartered Bank, Globus Bank, Optimus Bank, Citibank and Providus-Unity Bank consortium wey dey conclude CBN-sanctioned business combination.
For non-interest finance sector, all four banks wey dey operate on Islamic finance principles don meet the N20 billion minimum capital requirements. These banks na Jaiz Bank Plc, Lotus Bank, Taj Bank and Sterling HoldCo‘s The Alternative Bank. Dem also get indication say new non-interest bank wey dey seek license from CBN don meet the new regulatory capital.
Six banks with regional banking licenses dey for the list – Parallex Bank, Signature Bank, Suntrust Bank, Alpha Morgan Bank, NOVA Bank and Tatum Bank. Regional banks wey limited to operate for specific region of Nigeria need to get new minimum capital of N50 billion.
CBN go provide greater details next week about three banks under intervention-management: Polaris Bank, Keystone Bank and Union Bank of Nigeria (UBN). CBN Governor, Mr. Olayemi Cardoso, don address concerns about these three banks before, noting say dem no go follow same recapitalisation timeline because of legal and structural issues affecting them.
Cardoso talk say: “We remain actively engaged with all relevant stakeholders to ensure that they have an orderly and credible outcome while maintaining financial stability.” He assure Nigerians say depositor funds for these institutions remain secure and operations continue under close supervisory and regulatory oversight of CBN.
For wholesale banking space, most merchant banks don meet their new minimum capital base of N50 billion. Greenwich Bank, FSDH Merchant Bank, Rand Merchant Bank, Quest Merchant Bank and Coronation Merchant Bank dey for the list.
Chief Executive Officer of Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, talk say the Cardoso-led recapitalisation na the most successful in terms of impact and fallout. He express optimism say after the recapitalisation exercise, no visible disruption go happen to customers’ businesses and no displacement of employees, unlike previous exercise wey lead to closure of several banks.
Unity Bank confirm yesterday say their merger with Providus Bank don reach final stages. The bank talk say contrary to reports wey claim say dem never meet recapitalisation requirement, their merger with Providus Bank, wey CBN approve, don give the emergent bank the new minimum capital requirement.
The bank statement read: “As you may recall, the Central Bank of Nigeria (CBN) supported the proposed merger between Unity Bank and Providus Bank as part of the institutions’ strategy to meet the recapitalisation threshold. This approval included a pivotal financial accommodation designed to support the transaction.”
Dem talk say the financial accommodation don convert to Tier-1 capital, bringing the combined capital base of Unity Bank and Providus Bank well above the N200 billion minimum required to retain a national banking licence under CBN recapitalisation framework.
“As previously communicated, the merger process is currently in its final stages, following approvals from the CBN and shareholders of both banks. The transaction has also progressed with additional regulatory clearances from the Securities and Exchange Commission (SEC) and other relevant authorities,” Unity Bank state.
Dem add say integration activities between the two institutions don already start, while final court sanction go conclude the process in coming days, ahead of March 31 deadline wey CBN set for recapitalisation process.
This last-minute rush show say Nigeria banking sector serious about meeting regulatory requirements to strengthen financial system and support economic growth. As deadline dey approach, all eyes dey on CBN for final announcement about which banks don fully comply and wetin go happen to those wey never meet requirements.
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