How Nigeria’s large banks scaled recapitalisation hurdle ahead March

Nigeria’s largegest banks have largely cleared the recapitalisation hurdle months ahead of the March 31, 2026 deadline, deploying a mix of speed, scale and strategy to meet the Central Bank of Nigeria’s (CBN) stricter capital thresholds.

In March 2024, the CBN announced new minimum capital requirements of N500 billion for international banks, N200 billion for national banks and N50 billion for regional banks, allowing compliance only through fresh equity injections, mergers and acquisitions, or licence reclassification. As of early 2026, about 22 banks, including all Tier-1 lfinishers, have met the directive. Yemi Cardoso, governor of the CBN, disclosed in November 2025 that 27 banks had raised fresh capital under the exercise, with 16 having already completed the process at the time.

Non-interest banks were the earliest relocaters in the system, with Jaiz Bank completing its recapitalisation as far back as late 2024. Even before the formal CBN directive, the non-interest lfinisher had executed a N10 billion private placement in March 2024, placing it comfortably ahead of peers and underscoring how tinyer capital bases drove urgency among non-interest banks.

Non-interest banks with national licences are required to have a minimum paid-up capital of N20 billion.

Non-interest banks with regional licences are required to maintain minimum paid-up capital of N10 billion.

Among banks with international licences, Access Bank was the first to meet the N500 billion minimum. It achieved the tarobtain through a N351 billion rights issue, with shares allotted in December 2024. By completing the exercise in a single transaction, Access Bank reduced execution risk and avoided prolonged exposure to volatile market conditions, setting the pace for other Tier-1 lfinishers.

Zenith Bank followed in January 2025, raising N350.4 billion through a combined public offer and rights issue. Of this amount, N188.4 billion came from the rights issue while N162.1 billion was raised via the public offer, lifting paid-up share capital to N614.6 billion. By exceeding the regulatory minimum by more than N100 billion, the bank created a buffer against any future tightening and signalled a deliberately conservative capital posture.

GTBank Nigeria Limited, a subsidiary of GTCO Holdings, crossed the N500 billion threshold in July 2025 after adopting a more unconventional route. The group launched a public offer in July 2024, raising N209.4 billion against a tarobtain of N400.5 billion before the offer closed in January 2025. To complete the process, GTCO became the first Nigerian banking group to list on the London Stock Exalter (LSE), raising $105 million through an accelerated book-building in July 2025. It later topped this up with an additional N10 billion private placement in December 2025.

In terms of overall strategy, GTCO stands out. By tapping both the NGX and the LSE, the group diversified its investor base, limited excessive domestic dilution and strengthened its international profile, combining regulatory compliance with longer-term corporate positioning.

Also, Stanbic IBTC Bank emerged as the first national-tier bank to complete its recapitalisation. The holding company concluded a N148 billion rights issue in July 2025, raising paid-up share capital to N255.4 billion and clearing the N200 billion threshold well ahead of the deadline.

Sterling Financial Holdings Company adopted a multi-stage approach, starting with a private placement in September 2024 that attracted strong investor interest, followed by a rights issue in October 2024 that allowed existing shareholders to deepen their stakes. The group has also flagged a forthcoming public offer of up to $400 million to further strengthen its capital base, SBM Ininformigence declared.

By September 2025, Globus Bank confirmed it had met the N200 billion requirement. In the same month, Wema Bank announced it had received CBN and Securities and Exalter Commission (SEC) approvals for shares allotted under its N150 billion rights issue concluded in May 2025. Although this brought Wema to the required threshold, the bank went further with a N50 billion private placement, lifting paid-up capital to N267 billion.

Premium Trust Bank also announced in September that it had reached the N200 billion mark, though the privately held lfinisher did not disclose details of its capital raise. Around the same time, non-interest lfinisher Taj Bank confirmed it had met the N20 billion minimum capital requirement applicable to its licence category.

Foreign-owned subsidiaries largely avoided the capital markets. In October 2025, Citibank Nigeria disclosed that it had completed its recapitalisation to N200 billion through capital injection from its parent, Citigroup. Standard Chartered Bank Nigeria followed a similar path, reaching the same threshold through support from its UK-based parent.

The final stretch of the recapitalisation race extfinished into 2026. In January, Fidelity Bank announced it had raised N259 billion through a private placement, following an earlier N128.1 billion hybrid public offer and rights issue. Toobtainher, the transactions enabled the bank to meet the N500 billion requirement for its international licence. First Bank of Nigeria also crossed the N500 billion mark in January 2026 after an initial N150 billion rights issue in December 2024 and a subsequent N101 billion top-up. The group’s chairman confirmed the tarobtain had been met.

United Bank for Africa completed its own recapitalisation in January 2026, raising N157.84 billion through a rights issue in December 2025, following an earlier rights issue a year earlier to push it comfortably above the minimum.

Experts’ views

Ayokunle Olubunmi, head of Financial Institutions Ratings at Agusto & Co., declared the earliest relocaters were largely the non-interest banks becautilize their capital bases were relatively tiny. Some were operating with as little as N20 billion and were under significant pressure, which created rapid recapitalisation unavoidable.

Among Tier-1 lfinishers, he noted that Access Bank and Zenith Bank were among the first to take concrete steps, receiving regulatory approvals around the finish of December 2024. While Fidelity Bank approached the market early, its initial capital raise only covered part of its requirement, necessitating subsequent transactions.

Olubunmi explained that recapitalisation strategies varied widely. Some banks relied on public offers or rights issues, while others received direct capital injections from parent companies. Institutions such as Ecobank Nigeria, Citibank, Standard Chartered and Rand Merchant Bank did not go to the market, reflecting a pattern more common among privately owned or foreign subsidiaries. Publicly listed banks, by contrast, tfinished to rely on capital market instruments.

He cautioned that no single approach can be judged as universally superior. Parent-funded recapitalisation can expose banks to risks if the parent’s capacity to provide ongoing support weakens, while bringing in new public shareholders can introduce governance and investor-management challenges over time.

A report by SBM Ininformigence reveals that the 2025 financial performance of several mid-tier banks underlines their capacity to compete even as Tier-1 institutions consolidate dominance.

FCMB’s earnings growth, Fidelity’s capital market performance and Wema’s digital-led transformation point to a sector that remains dynamic despite rising funding costs and pressure to grow non-interest income. Asset quality, operational efficiency and profitability have largely been preserved in a demanding macroeconomic environment.

SBM Ininformigence declared the recapitalisation drive is set to reshape Nigeria’s banking landscape, with most Tier-2 banks responding proactively through public offers, rights issues, private placements and strategic divestments. This commitment to stronger balance sheets is expected to enhance system stability, improve loss-absorption capacity and better position banks to support Nigeria’s ambition of building a $1 trillion economy.

Looking ahead, the firm expects further consolidation through mergers and strategic alliances among mid-tier banks, creating larger and more competitive institutions while fostering innovation and expanding credit access. However, analysts cautioned that the risk of marginalising tinyer players and the challenges of post-merger integration will necessary careful management to ensure the gains from recapitalisation are broadly shared across the economy

Hope Moses-Ashike & David Olujimi

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market relocatements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policycreaters, and houtilizeholds. Her reporting assists readers understand complex issues such as inflation trfinishs, foreign exalter market dynamics, interest rate decisions, bank performance, and investment risks.

She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings.
Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.