Seven Nigerian Banks Face ₦965bn Recapitalisation Gap Ahead of CBN Deadline

Seven Nigerian commercial banks—Fidelity Bank, FCMB, GTCO, UBA, First Bank Holding (FirstHoldco), Sterling Bank, and Stanbic IBTC—are under pressure to raise a combined ₦964.8 billion to meet the Central Bank of Nigeria’s (CBN) revised capital requirements. The recapitalisation drive, introduced in 2024, aims to fortify the banking sector’s resilience amid macroeconomic turbulence. With the 2026 deadline approaching, these banks are racing to close their capital shortfalls and align with the new minimum thresholds set for international, national, and regional banks.

So far, four banks—AccessCorp, Zenith Bank, Ecobank, and Lotus—have successfully met the new capital requirements. Collectively, Nigerian banks have raised approximately ₦1.3 trillion, covering just over half (52.6%) of the estimated ₦2.5 trillion industry-wide capital need. The capital deficits among the seven lagging banks range from ₦70 billion to over ₦230 billion, reflecting a mix of shareholder fund limitations and the scale of their operations under the new regulatory categories.

The CBN’s recapitalisation policy requires banks to meet capital bases of ₦500 billion (international licence), ₦200 billion (national licence), and ₦50 billion (regional licence). Analysts, however, remain optimistic about the sector’s health. A recent report by Afrinvest projects strong earnings growth and continued balance sheet optimisation in the second half of 2025, with expectations that many banks will intensify recapitalisation efforts to boost investor confidence in a more stable regulatory environment.

In response, banks are pursuing a mix of strategies including rights issues, private placements, mergers and acquisitions, and international investment partnerships. Several banks have already begun engaging institutional and foreign investors, with some considering asset restructuring. The recapitalisation initiative is part of the CBN’s broader effort to ensure financial system stability in the face of inflation, currency volatility, and rising non-performing loans.

Industry experts suggest that the recapitalisation pressure may spark consolidation, particularly among mid-tier and tier-2 banks. Temi Adedayo of KPMG Nigeria notes that institutions unable to bridge their capital gaps could become targets for acquisition. This current exercise recalls the 2005 Soludo-led banking reforms, which drastically reduced the number of Nigerian banks from 89 to 25. As 2026 approaches, investor attention will remain fixed on how these seven banks mobilise funds and manage the associated costs of recapitalisation.

Source: The sun