With less than a year until Nigeria’s banking recapitalisation deadline, only seven banks have met or are on track to meet the new capital requirements. BusinessDay data reveals that commercial and non-interest banks must raise at least ₦2.47 trillion before the March 31, 2026 deadline.
Zenith Bank, Access Holdings, Ecobank Nigeria, and Lotus Bank have successfully met the new capital threshold. Meanwhile, Wema Bank, Stanbic IBTC, and Fidelity Bank are set to reach the mark once they complete their respective rights issues of ₦149.3 billion, ₦148.7 billion, and 20 billion private placement shares.
So far, 10 banks have raised or are in the process of raising ₦2.02 trillion through rights issues, public offers, and private placements.
Further review shows that Access Holdings raised ₦351 billion in a rights issue programme. Zenith Bank raised ₦350.46 billion in a hybrid rights issue and public offer. GTCO Holdings raised ₦209.4 billion in a public offer. Sterling Holdco has raised ₦103.8 billion from its private placement and rights issue. FCMB raised ₦144.6 billion in its public offer programme, while Fidelity Bank raised ₦175.85 billion from its hybrid rights issue and public offer.
BusinessDay reports that Fidelity Bank is also conducting a private placement of 20 billion shares, potentially raising over ₦380 billion at its current share price of ₦19.05.
GTCO has yet to announce the second phase of its recapitalisation plans. The group must raise at least ₦153 billion to retain its international banking licence, with a rights issue being the most likely approach. Following its ₦240 billion final dividend payout for FY 2024, analysts posit that the bank is exploring the recapitalisation of its earnings.
Away from the banks that have commenced the recapitalisation process, 14 smaller banks have yet to make any move. These banks, which are tier-2, tier-3, and non-interest banks, need to raise ₦1.6 trillion to meet the new minimum share capital requirements.
Currently, there is a bit of uncertainty with respect to the smaller banks and some of the older banks, such as Union Bank which has delisted from the stock exchange, as well as Polaris, Keystone, and Unity Banks.
Union Bank needs to raise ₦51.9 billion to reach the minimum capital requirement. However, the bank, which is also in breach of the 10 per cent capital adequacy ratio, has been quite slow with the recapitalisation move. Polaris Bank needs to raise ₦149.6 billion to keep its national banking licence, however, no move has been made yet. Keystone Bank, which is now under the control of the Federal Government through the CBN, is under uncertain conditions.
Unity Bank is merging with Providus Bank, securing a ₦700 billion financial accommodation from the CBN. However, the new entity must raise ₦142.5 billion to retain its national banking license.
Meanwhile, tier-3 banks—including Globus Bank, Standard Chartered Bank, Nova Bank, Titan Trust Bank, Premium Trust Bank, Optimus Bank, and Citibank Nigeria—face uncertainty amid the ongoing recapitalisation drive. Foreign-owned banks, such as Standard Chartered Bank and Citibank Nigeria, are in a stronger position, as their parent companies can provide financial support to ensure continued operations.
It is currently unknown if these banks have received board approval to launch their recapitalisation plans. However, Fitch notes that M&A activity and licence downgrades are highly likely among these tier-3 banks.
