Nigeria’s Big Banks Beat Recapitalisation Deadline
Atume Terfa
Nigeria’s biggest banks are closing out one of the most demanding regulatory races in recent financial history, with many emerging stronger well ahead of the Central Bank of Nigeria’s March 31, 2026, recapitalisation deadline. What began as a tough test of balance sheets and investor confidence has evolved into a show of strength for the country’s top lenders, who have raised fresh capital at scale and reshaped their strategies to meet stricter standards.
The recapitalisation drive, announced by the CBN in March 2024, was designed to fortify Nigeria’s banking system against shocks and position it for larger economic roles in a changing global landscape. Banks were given a 24-month window to meet sharply higher capital thresholds — ₦500 billion for international banks, ₦200 billion for national banks and ₦50 billion for regional and merchant banks, with adjusted requirements for non-interest lenders. In a notable departure from past exercises, retained earnings and reserves were excluded from the qualifying capital base, forcing banks to raise entirely new funds rather than rely on past profits.
Rather than slow the industry, the tougher rules sparked an aggressive capital-raising wave. By early 2026, Nigeria’s biggest lenders had already cleared the bar. Access Bank and Zenith Bank pushed their capital well above ₦500 billion through large rights issues and share offers, while United Bank for Africa crossed the same threshold after successive equity raises that underscored strong investor appetite. Guaranty Trust Bank, First Bank, Fidelity Bank and several other major players followed similar paths, tapping the market with confidence and reporting compliance months before the deadline.
The momentum extended beyond the tier-one names. By January 2026, as many as 19 banks across different licence categories — international, national, regional, merchant and non-interest — had reportedly met the new requirements, highlighting a sector-wide push rather than isolated success stories. The strategies varied, but the objective was the same: secure fresh money. Large banks leaned heavily on rights issues and public offers that were often oversubscribed, drawing support from both local and foreign investors. Others opted for private placements, bringing in strategic partners quietly and efficiently. Smaller and regional institutions explored mergers or licence adjustments, using consolidation as a faster route to scale up capital and remain competitive.
For regulators and market watchers, the significance goes beyond meeting a numerical threshold. Higher capital bases are expected to give banks greater shock-absorbing capacity, improve confidence in the financial system and unlock the ability to fund larger, longer-term projects in infrastructure, manufacturing and small businesses. The recapitalisation push is also accelerating consolidation, setting the stage for fewer but stronger banks with the capacity to compete not just locally, but across Africa and beyond.
CBN Governor Olayemi Cardoso has described the progress as evidence of a more resilient and confident banking industry, one that is responding decisively to reform rather than resisting it. As the March deadline approaches, the focus has shifted from whether Nigeria’s big banks can meet the requirement to how effectively they will deploy their new capital to drive growth — a question that may define the next phase of the country’s financial evolution
