By Peter Omopo
Nigerian banks have intensified efforts to meet new capital requirements as the Central Bank of Nigeria’s (CBN) banking recapitalisation programme enters its final and most critical phase.
With 52 working days remaining before the March 31, 2026 deadline, financial institutions are fine-tuning funding strategies, increasingly turning to private equity placements and, in some cases, considering changes to their banking licence categories.
CBN Governor Olayemi Cardoso recently disclosed that 16 banks had already met the revised capital thresholds, while 27 others were at different stages of raising funds. However, the Deputy Governor for Economic Policy, Dr. Muhammad Abdullahi, later indicated that at least 20 banks had successfully fulfilled the requirements.
His comments followed confirmations from United Bank for Africa (UBA), Fidelity Bank and First Bank of Nigeria that they had completed their recapitalisation exercises after receiving final regulatory approvals.
Nigeria currently has 44 deposit-taking banks operating under international, national and regional licence categories.
Sources familiar with the process said the CBN was evaluating practical and minimally disruptive exit strategies as the exercise nears completion. A senior regulatory source disclosed that the apex bank would soon announce “conclusive plans” regarding the resolution of at least three banks under its management.
According to the source, one of the affected banks, with a long-standing presence in the South-West and strong operations in Lagos, may be reclassified from a national to a regional bank. At least seven other banks are also reportedly considering similar downgrades, citing the concentration of their operations and the expanding role of digital banking.
Meanwhile, a bank operating with an international licence has hinted at the possibility of temporarily scaling down to a national licence to meet the deadline, while continuing efforts to raise additional capital to regain its international status.
Regulatory sources said the CBN had approved a flexible framework that allows banks to move up or down licence categories, provided they present verified evidence of meeting the required capital thresholds.
Under the recapitalisation guidelines, banks must not only raise fresh capital but also undergo a rigorous verification process before final approval. The CBN chairs a tripartite capital verification committee that includes the Securities and Exchange Commission (SEC) and the Nigeria Deposit Insurance Corporation (NDIC).
Market analysts noted that the stringent verification process and the narrow definition of qualifying capital—largely restricted to share capital and share premium—have slowed capital mobilisation. Despite this, analysts remain optimistic about the outcome of the exercise.
Industry data suggest that more than 20 banks have already met the requirements, with further progress expected in the coming weeks. Analysts also note that, unlike the 2004–2005 banking consolidation that led to widespread mergers and closures, the current recapitalisation process appears more stable.
The recapitalisation programme, launched in March 2024, revised minimum capital requirements across banking categories. International commercial banks are required to hold at least N500 billion, national banks N200 billion, and regional banks N50 billion. Merchant banks must maintain N50 billion, while non-interest banks require between N10 billion and N20 billion, depending on licence scope.
The 24-month compliance period ends on March 31, 2026.
Although the CBN has yet to publish an official list of compliant banks, disclosures from the Nigerian Exchange, audited financial statements and public announcements indicate that several top-tier banks, including Access Bank, Zenith Bank, GTBank, UBA, First Bank and Fidelity Bank, have already met the new thresholds.
Industry stakeholders say the final weeks of the exercise will shape the future structure of Nigeria’s banking sector as the recapitalisation process draws to a close.
