At least five banks have already met the new capital requirements set by the Central Bank of Nigeria (CBN) ahead of the March 2026 deadline. They are Access Bank, Zenith Bank, Ecobank Nigeria, Lotus Bank, and Jaiz Bank.
In March 2024, the CBN directed commercial banks with international licences to raise their capital base to N500 billion, national banks to N200 billion, and regional banks to N50 billion. Non-interest banks are expected to meet new minimum capital levels of N20 billion for national and N10 billion for regional operations.
Zenith Bank, for example, raised N350.4 billion through a rights issue and public offer, boosting its share capital to N614.65 billion — well above the minimum required. Ecobank Nigeria, according to Fitch Ratings, needed only a modest capital boost to meet its national licence requirement and has achieved compliance, though it still faces a shortfall in its total capital adequacy ratio. Its parent company, Ecobank Transnational Incorporated, also raised an additional $125 million in May 2025 by tapping its existing $400 million notes due 2029.
Lotus Bank disclosed that it had already exceeded the N20 billion requirement for national non-interest banks even before the new directive. Jaiz Bank, another non-interest bank, crossed the new threshold in early January by listing its N10.04 billion private placement on the Nigerian Exchange after securing all necessary regulatory approvals.
With less than a year left before the recapitalisation deadline, many other banks have entered the next phase of fundraising. For instance, Guaranty Trust Holding Company (GTCO) plans to raise about $100 million from the international capital market and list its shares on the London Stock Exchange. This comes after GTCO raised N209 billion via a public offer in July 2024 to support GTBank Nigeria’s recapitalisation and growth plans. GTCO’s CEO, Segun Agbaje, described the move as a milestone for the group, boosting its global visibility and access to capital.
First HoldCo, a tier-1 bank, announced plans to raise an additional N350 billion through a private placement, targeting Q2 2025 to meet its capital requirement. Once completed, its banking subsidiary will have about N748 billion in paid-up capital.
Despite these successes, several banks still face significant capital gaps. According to Afrinvest Research, Fidelity Bank, FCMB, Sterling Bank, Stanbic IBTC, and United Bank for Africa collectively need to raise about N733.7 billion. Wema Bank is working toward a N200 billion target through a N150 billion rights issue and special placement.
Meanwhile, Union Bank, Polaris Bank, and Keystone Bank — now under government control through the CBN — have yet to publicly announce any recapitalisation plans. Unity Bank is merging with Providus Bank and has secured a N700 billion financial accommodation from the CBN but must still raise additional funds to keep its national licence.
For tier-3 banks like Globus Bank, Standard Chartered Bank, Nova Bank, Titan Trust Bank, Premium Trust Bank, Optimus Bank, and Citibank Nigeria, mergers and acquisitions (M&A) appear increasingly likely. Fitch Ratings has noted that smaller banks have been slow in recapitalising and may need to consolidate or downgrade their licences to comply. Foreign-owned banks like Standard Chartered and Citibank Nigeria benefit from parent company support, which strengthens their position.
Market analysts maintain a broadly positive outlook for the sector. Afrinvest said strong earnings growth and balance sheet optimisation will drive further progress in H2 2025 as more banks accelerate their capital-raising efforts. CardinalStone added that the CBN’s stricter supervision, including new rules on forbearance loans and single obligor limits, will improve asset quality and ensure long-term capital discipline.
The CBN has recently directed banks to fully exit forbearance loans as a condition for future dividend payments, which may affect near-term payouts but is expected to make the system more resilient and transparent.
ADEOLA KUNLE
