Nigeria: Sterling Bank, FBN, Ecobank and 20 Others Meet CBN Recapitalisation Targets

In a major milestone for Nigeria’s banking sector, 23 banks, including Sterling Bank, First Bank of Nigeria (FBN), Ecobank, and others, have successfully met the new capitalisation requirements set by the Central Bank of Nigeria (CBN). The achievement strengthens the sector’s resilience and capacity to support economic growth, financial stability, and investment.

The recapitalisation exercise, which began in 2024, requires commercial banks with international authorisation to maintain at least N500 billion, national banks N200 billion, and regional banks N50 billion. Non-interest banks (NIBs) were also assigned clear thresholds, with national NIBs required to raise N20 billion and regional NIBs N10 billion.

The 24-month compliance window, ending on March 31, 2026, has catalysed a flurry of rights issues, private placements, mergers, and balance sheet restructuring across the industry. This mirrors the transformative 2004 recapitalisation under then-CBN Governor Prof. Charles Soludo, which saw the sector consolidate from 89 banks to 25 through a significant capital boost.

Highlights from Key Banks

• Access Bank led the capitalisation drive, raising N351 billion via a rights issue. The offering of 17.77 billion shares at N19.75 each boosted its capital base to N602.8 billion, exceeding the CBN minimum by N102.8 billion.

• Zenith Bank combined rights issues and public offers to raise over N350 billion, taking its capital to N614 billion.

• First Bank of Nigeria, through its parent company First HoldCo, reached the N500 billion target with a mix of rights issues, private placements, and the sale of its merchant banking subsidiary.

• Sterling Bank, via Sterling HoldCo, achieved the required capital threshold through targeted capital raises, including a recent public offer of over N88 billion.

• Wema Bank raised N150 billion through a rights issue, while Citibank and Standard Chartered Nigeria met the requirements with backing from their international parent companies.

Among non-interest banks, The Alternative Bank (AltBank), Jaiz Bank, TAJBank, and Lotus Bank have also reached the new capital thresholds, reinforcing the sector’s commitment to inclusive and diverse banking options. AltBank, for example, had secured the necessary capital injection as far back as May 2025, positioning it strongly within the non-interest banking space.

Implications for the Nigerian Banking Sector

With 23 banks now fully recapitalised, Nigeria’s banking system is poised for greater stability, resilience, and growth. These banks are better equipped to support the country’s economic agenda, drive investments, and compete globally.

CBN Governor Olayemi Cardoso reiterated that the recapitalisation is on track, assuring that the exercise strengthens system resilience. Non-compliant banks may face downgrades or forced mergers, but depositors’ funds remain secure.

This initiative, reminiscent of the 2004 consolidation, is set to shape the future of banking in Nigeria, ensuring that the sector is prepared to meet the demands of a complex, competitive, and fast-evolving financial environment.

As the March 2026 deadline approaches, further capital raises and strategic investments are expected, solidifying the Nigerian banking sector’s capacity for sustainable growth and global competitiveness.