Naija banking sector don dey see serious transformation as over 30 banks don successfully meet di new minimum capital requirements wey Central Bank of Nigeria (CBN) set for March 31, 2026 deadline. Di recapitalisation exercise wey begin for March 2024 don make banks raise billions of naira to strengthen dia balance sheets and support Nigeria economy wey dey grow.
CBN Governor Olayemi Cardoso don announce say majority of banks don cross di finish line, with total verified and approved capital wey reach N4.05 trillion as of February 19, 2026. According to di apex bank, about 71.6% of dis money come from local investors while foreign investors contribute di remaining 28.4%. Dis show say both local and international investors get confidence for Naija banking sector.
Big banks like Access Bank, Zenith Bank, Guaranty Trust Bank (GTB), United Bank for Africa (UBA), and First Bank don all meet di new capital thresholds. Mid-tier institutions wey don comply include Fidelity Bank, FCMB, Stanbic IBTC, Sterling Bank, Wema Bank, Citibank Nigeria, and Standard Chartered Nigeria. Even non-interest lenders like Jaiz Bank, Lotus Bank, TAJ Bank, and The Alternative Bank don meet dia requirements.
Di recapitalisation policy require international commercial banks to hold minimum of N500 billion paid-up capital, up from N50 billion before. National banks need N200 billion (up from N25 billion), while regional banks need N50 billion (up from N10 billion). Merchant banks must raise dia capital to N50 billion from N15 billion, and non-interest banks get dia own requirements too.
But not all banks don finish di race. Keystone Bank and Polaris Bank still dey face challenges. Keystone Bank recently come under full Federal Government ownership after di dissolution of Sigma Golf Nigeria Limited wey involve alleged N20 billion fraud case wey Economic and Financial Crimes Commission (EFCC) dey handle. Polaris Bank dey explore options like potential merger or foreign investor takeover to meet requirements.
CBN Governor Cardoso don indicate say banks wey dey under regulatory intervention go get “special consideration” because of legal and structural challenges wey affect dia recapitalisation timelines. He stress say na unrealistic to expect dem to follow same timeline as odas wey get about two and half years to prepare since di policy announcement.
Di recapitalisation exercise don trigger merger activities across di sector. Providus Bank and Unity Bank don arrange merger wey still dey wait court ratification. Analysts expect more mergers and acquisitions among weaker players wey wan remain viable under di new capital regime.
Experts warn say meeting capital threshold na only part of di challenge. Issues like profitability, asset quality, and corporate governance go determine long-term competitiveness. “Di real story na not just how many banks meet di requirement, but how many fit sustain performance afterwards,” one analyst note.
For di insurance sector, regulators dey watch as banking recapitalisation finish. National Insurance Commission (NAICOM) Commissioner Olusegun Omosehin say at least 20 insurance companies don indicate readiness for capital verification. Di insurance industry dey prepare for its own recapitalisation exercise to strengthen financial stability.
Di Centre for di Promotion of Private Enterprise (CPPE) CEO Dr Muda Yusuf say di recapitalisation must translate to better credit delivery to small and medium enterprises (SMEs), agriculture, and odas productive sectors. He note say stronger capital bases should make banks increase dia risk appetite responsibly and support economic development.
Independent investor Amaechi Egbo say di exercise don alter shareholder value dynamics, especially for banks wey raise funds at discounted valuations. He note say such institutions fit experience slower earnings recovery for short term, while banks wey execute stronger capital strategies go gain competitive edge.
New Dimension Shareholders Association of Nigeria President Patrick Ajudua say shareholders dey look beyond di recapitalisation to post-reform banking sector wey go dey defined by strength, profitability, and sustainable returns. He stress say banks must deploy funds prudently and monitor subsidiary performance well.
As di deadline approach, attention dey focus on final approvals and last-minute deals wey go define di next phase of Nigeria banking landscape. Di CBN aim to build stronger banking system wey fit support Nigeria ambition of $1 trillion economy. For operators, na high-stakes test wey dey reshape di entire industry.
Do you have a news tip for NNN? Please email us at editor @ nnn.ng
