Nigeria’s banking sector is in the final phase of a major recapitalisation drive, with lenders accelerating capital-raising actions ahead of the Central Bank of Nigeria’s (CBN) March 31, 2026 deadline. The process has shifted from public fundraising announcements to regulatory validation and capital confirmation, analysts noted.
According to Proshare, industry activity was subdued in the week ended February 12 as focus turned to verification procedures. FCMB Group is undergoing a capital verification by the CBN to confirm compliance with the new N500 billion minimum capital requirement for international banking licences. The group previously secured its national licence in 2024 after an oversubscribed offer and completed a N160 billion public issue last year. A successful verification would formalise its continued international operations, placing FCMB at a final regulatory checkpoint.
Sterling Bank has not yet announced its recapitalisation strategy, though analysts anticipate a rights issue or private placement to bridge the gap between its current capital of approximately N167 billion and the N200 billion requirement. GTCO Plc executed a proactive N10 billion private placement in January, issuing 125 million shares at N80 each to a single investor. Proshare described this as a move to strengthen capital buffers ahead of tighter standards, signalling sustained investor confidence.
First HoldCo Plc’s unaudited 2025 results underscored the urgency of the recapitalisation push. A significant impairment charge affected earnings, highlighting how asset-quality issues can rapidly diminish capital. Analysts said this reinforces the need for early capital planning and robust governance.
Market speculation also pointed toward potential sector consolidation. Unconfirmed reports suggested a possible strategic merger between two tier-1 banks, along with bank-led investments in refinery and energy infrastructure. For smaller and mid-tier lenders, recapitalisation is increasingly linked to foreign investment and consolidation. Union Bank has attracted reported interest from United Arab Emirates investors amid a legal dispute, while Keystone Bank is seeing interest from both local and foreign parties for a potential joint acquisition. Polaris Bank is expected to pursue investor-led recapitalisation or merge with another tier-2 lender. Proshare’s Economic and Market Intelligence Unit indicated the CBN is open to mergers and acquisitions as a path to build larger, more resilient banks, though foreign partnerships may be necessary for some institutions to meet unencumbered capital rules.
Separately, the CBN’s latest fintech report emphasised the rapid growth of digital finance, adding pressure on banks to balance competition with strategic partnerships to enhance reach and efficiency.
With less than two months until the deadline, most tier-1 and tier-2 banks are assessed as having met revised buffers, while tier-3 lenders face pressure to secure funding or consolidate. The market now watches for final regulatory confirmations, including FCMB’s outcome, as the sector approaches a pivotal capital reset.
