Nigeria’s banks are entering the last stage of their recapitalisation efforts, with lenders accelerating capital-raising activities ahead of the Central Bank of Nigeria’s (CBN) March 31, 2026, deadline. Analysts at Proshare note that activity slowed in the week ending February 12, as focus shifted from fundraising announcements to regulatory checks and capital verification.
Capital Moves Among Major Banks
FCMB Group is currently undergoing capital verification by the CBN to confirm compliance with the new minimum requirement of ₦500 billion for international banks. Having secured its national banking licence in 2024 through an oversubscribed public offer and raised another ₦160 billion last year, the verification represents the final regulatory checkpoint before the bank can continue its international operations.
Sterling Bank has yet to outline its recapitalisation plan, but analysts anticipate a rights issue or private placement to bridge its ₦167 billion capital shortfall against the ₦200 billion threshold.
GTCO Plc has already completed a ₦10 billion private placement, issuing 125 million shares at ₦80 each to a single investor. Analysts view the move as proactive capital strengthening for medium-term growth rather than a regulatory requirement, signaling sustained investor confidence.
First HoldCo Plc’s unaudited 2025 results highlighted the impact of asset-quality challenges, with a large impairment charge affecting earnings. Analysts emphasize that such developments underscore the importance of early capital planning and robust governance.
Consolidation, Foreign Investment, and Strategic Moves
Speculation is growing about potential sector consolidation, including a possible merger between two tier-1 banks and bank-led investments in Nigeria’s refinery and energy sectors. While unconfirmed, these developments indicate a trend toward scale and diversification.
Smaller and mid-tier banks are increasingly relying on foreign investment and mergers to meet capital requirements:
- Union Bank has attracted interest from UAE investors, pending resolution of a legal dispute involving a former investor.
- Keystone Bank is drawing attention from both local and foreign parties, potentially leading to a joint acquisition.
- Polaris Bank is expected to pursue investor-led recapitalisation or merge with another tier-2 lender, supporting sector consolidation.
Proshare analysts say the CBN appears supportive of mergers and acquisitions as a way to create stronger, more resilient banks, noting that foreign partnerships may be critical to meet unencumbered capital targets.
Fintech Competition Adds Pressure
CBN’s latest fintech report highlights the rapid growth of digital finance and the need for regulatory alignment. For banks, this emphasizes the need to compete with fintech players while exploring partnership opportunities to expand efficiency and reach.
With fewer than two months to the deadline, most tier-1 and tier-2 banks are reported to have met revised capital buffers. Tier-3 lenders, however, continue to face pressure to secure funding or merge to remain competitive post-recapitalisation.
The sector now awaits regulatory confirmations, particularly FCMB’s outcome, as it approaches one of the most significant capital restructurings in recent years.