Nigerian banks are in a race against time to meet new capital requirements set by the Central Bank of Nigeria (CBN), a sweeping reform that could determine which lenders survive, merge, or fade from the system by March 31, 2026.

The recapitalization policy, which began in 2024, is designed to strengthen banks against economic shocks and position them to better support Nigeria’s growth agenda. But for customers, analysts warn that keeping money in undercapitalised banks could carry growing risks as the deadline approaches.

Under the new rules, commercial banks must now hold:

• N500 billion for international banking licences
• N200 billion for national licences
• N50 billion for regional licences

For non-interest banks, the thresholds are N20 billion (national) and N10 billion (regional).

With just months left in the 24-month compliance window, the regulation has triggered a wave of equity issuances, private placements, mergers, and balance-sheet restructuring across the banking sector.

The exercise echoes the landmark 2004 consolidation under former CBN Governor Charles Soludo, which slashed the number of banks from 89 to 25 and reshaped Nigeria’s financial landscape. Industry watchers say a similar shakeout may be underway.

Banks That Have Met the New Capital Threshold

As of January 8, 21 lenders have successfully completed their recapitalisation, easing concerns for depositors and investors alike.

Among international banks, those that have crossed the N500 billion mark include:

• Access Bank, the first to meet the requirement after raising N351 billion through a rights issue, pushing its capital base to N602.8 billion
• Zenith Bank, which raised over N350 billion to take its capital to N614 billion
• First HoldCo (First Bank), following a mix of rights issues, private placements, and asset divestments
• GTCO, whose phased equity programme lifted GTBank’s paid-up capital above N504 billion
• UBA, after combined capital injections exceeding N400 billion
• Fidelity Bank, which raised its eligible capital to N564.5 billion through private placements and public offers

For national banks, lenders that have met the N200 billion requirement include:

• Wema Bank (awaiting final regulatory verification)
• Citibank Nigeria
• Standard Chartered Bank Nigeria, backed by its UK parent
• Ecobank Nigeria
• Globus Bank, following consecutive capital raises in 2024 and 2025
• Stanbic IBTC, through a rights issue and parent company injection
• PremiumTrust Bank, one of the youngest banks to meet the threshold
• Providus Bank, following its strategic merger with Unity Bank

Several merchant banks including FSDH, Greenwich, Nova, and Rand Merchant Bank have also complied, while non-interest banks such as Jaiz Bank, Lotus Bank, and TAJBank have strengthened their capital bases ahead of the deadline.

Source: BusinessDay

What This Means for Customers

Financial analysts say recapitalization will likely improve banks’ ability to lend, absorb shocks, and fund large-scale projects from 2026 onward. However, banks that fail to meet the requirements may be forced into mergers, licence downgrades, or regulatory intervention.

For customers, the message is becoming clearer: where you bank matters more than ever.

As the March 2026 deadline draws closer, industry experts advise depositors and businesses to pay attention to their banks’ recapitalization status, as the next phase of consolidation could redefine Nigeria’s banking sector and the safety of customer funds.

By Naomi Jeremiah