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Eight Nigerian lenders have met the Central Bank of Nigeria’s (CBN) new minimum capital requirements well ahead of the March 2026 deadline, marking a significant milestone in the ongoing recapitalisation of the country’s banking sector.
The financial institutions—Access Holdings, Zenith Bank, Stanbic IBTC, Wema Bank, Lotus Bank, Jaiz Bank, Providus Bank, and Greenwich Merchant Bank—have successfully raised capital in line with the CBN’s directive issued in March 2024. The initiative, which formally commenced on April 1, 2024, aims to strengthen the sector’s capacity to support a $1 trillion economy.
The recapitalisation exercise mandates a minimum capital base of ₦500 billion for commercial banks with international licenses, ₦200 billion for national banks, and ₦50 billion for those operating regionally. Merchant banks are expected to meet a ₦50 billion threshold, while non-interest banks require ₦20 billion (national) and ₦10 billion (regional) respectively. Only paid-up share capital and share premium are considered, excluding retained earnings and other reserves.
CBN Governor Olayemi Cardoso underscored the urgency of the reform, stating that without action, Nigerian banks would lack the capital necessary to effectively support the scale of economic activity envisioned under a $1 trillion GDP target. “This action was necessary to prepare our banks for expansion and to enable them to support large-scale transactions that can stimulate economic growth,” Cardoso said.
The recapitalisation effort is part of a broader reform agenda aligned with the Policy Advisory Council’s national economic plan, which recognises a robust banking sector as foundational to long-term growth. Cardoso highlighted the strategic importance of empowering banks to extend more credit to MSMEs, finance infrastructure, and invest in digital innovation—initiatives expected to drive job creation and deepen financial inclusion.
The CBN has reassured stakeholders of the sector’s resilience, noting that the banking system remains stable, with financial soundness indicators well within regulatory thresholds. The non-performing loan (NPL) ratio remains below the 5% prudential benchmark, and the liquidity ratio exceeds the 30% regulatory floor.
“Stress tests have affirmed the system’s robustness, and ongoing monitoring frameworks, including early warning signals and risk-based supervision, are in place to safeguard financial stability,” the apex bank stated.
Deputy Governor of Corporate Services, Emem Usoro, reinforced the importance of recapitalisation as a critical pillar for economic transformation. “To fund and power a $1 trillion economy, Nigerian banks must be adequately capitalised to support larger and more dynamic financial intermediation,” she said.
She called for coordinated efforts from both public and private stakeholders to ensure the financial system remains well-positioned to support development priorities.
United Bank for Africa (UBA) Group Managing Director, Oliver Alawuba, echoed similar sentiments, describing the recapitalisation policy as both timely and strategic. He stressed the need for Nigerian banks to strengthen their capital buffers in order to manage macroeconomic shocks and expand lending to priority sectors such as agriculture, infrastructure, manufacturing, fintech, and green energy.
According to Alawuba, Nigerian bank assets accounted for just 11.97% of GDP in 2024—well below international benchmarks where bank assets typically range from 70% to 150% of GDP. “To meet global standards and support transformational growth, Nigerian banks must scale up,” he said.
The Director of Banking Supervision at the CBN, Olubuka Akinwunmi, affirmed that all banks remain compliant with regulatory capital adequacy and NPL thresholds. He noted that while most institutions are independently raising capital, mergers and acquisitions may emerge as viable strategies as banks evaluate their options.
Looking ahead to 2025, the CBN will enforce enhanced compliance and governance frameworks to better address emerging risks. As part of this shift, the apex bank recently sanctioned 29 banks with penalties totalling ₦15 billion for compliance breaches, including anti-money laundering and counter-terrorist financing violations. These banks are also required to implement corrective measures to address root causes.
The CBN has also committed to improving the operational efficiency of Other Financial Institutions (OFIs), such as Primary Mortgage Banks (PMBs) and Microfinance Banks (MFBs), through enhanced regulation and integration with platforms like the Global Standing Instruction (GSI) to reduce non-performing loans.
As the recapitalisation timeline progresses, analysts view the early compliance of eight banks as a strong signal of market confidence and institutional strength. With continued regulatory support and strategic alignment, the reform is expected to position the banking industry as a key driver of inclusive, innovation-led, and sustainable economic growth.
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