The Nigerian banking sector is in the final, decisive stretch of a major transformation, racing against the clock to meet the Central Bank of Nigeria's (CBN) recapitalisation deadline of March 31, 2026. This aggressive capital restructuring, one of the most significant in decades, is rapidly reshaping the financial landscape.
State of Readiness: More Banks Compliant Than Reported
Contrary to some reports suggesting only 19 banks were ready, current industry data reveals a more advanced level of preparedness. As of January 2026, approximately 22 out of Nigeria's 34 licensed banks have successfully secured their operating licences under the new capital regime. This achievement follows a wave of strategic moves including equity raises, mergers, and significant internal repositioning by the institutions.
For depositors and investors, this widespread compliance offers increasing reassurance about the sector's stability. The recapitalisation drive is fundamentally about building a stronger, more resilient banking system capable of supporting national economic ambitions.
Understanding the New Capital Thresholds
The CBN's framework, announced in March 2024, sets distinct capital floors for different categories of banks. International banks must maintain a minimum paid-up capital of ₦500 billion. National banks face a ₦200 billion requirement, while regional banks must hold at least ₦50 billion.
A critical rule is that retained earnings do not count towards meeting these thresholds. Only fresh capital injections, achieved through methods like rights issues, private placements, or merger synergies, qualify under the stringent new rules.
Banks That Have Crossed the Finish Line
Several tier-one lenders have already cleared the highest bar. Banks including Access Bank, Zenith Bank, GTBank, United Bank for Africa (UBA), First Bank, and Fidelity Bank have all surpassed the ₦500 billion mark, firmly securing their international banking licences.
In the national category, institutions like FCMB, Wema Bank, Standard Chartered, and Citibank have officially met the ₦200 billion threshold. Notably, FCMB is in the final stages of raising additional capital to upgrade to an international licence.
Other banks confirmed to have met their respective capital requirements include Stanbic IBTC, Sterling Bank, Providus Bank, Globus Bank, and Premium Trust Bank, placing them safely within the new regulatory limits.
Industry Reshaped by Mergers and Strategic Choices
The recapitalisation pressure is catalysing significant consolidation. Unity Bank and Providus Bank are in advanced merger talks, a union expected to create a new top-10 lender by asset size. Furthermore, Titan Trust Bank has completed its full integration with Union Bank, dramatically strengthening its capital base and market position.
Not all banks are pursuing aggressive expansion. Some have opted for strategic downgrades to focus on specific markets. For instance, Nova Bank chose to operate with a regional licence requiring a ₦50 billion capital base, allowing it to concentrate on niche, high-end banking services rather than nationwide scale.
The non-interest banking segment has also demonstrated resilience. Jaiz Bank, Taj Bank, and Lotus Bank have all met the ₦20 billion capital requirement for their category, underscoring the growing relevance of Islamic finance in Nigeria's diversified financial system.
Implications for Customers and the Final Countdown
For the remaining banks yet to comply, the final weeks leading to the deadline are likely to witness a flurry of last-minute activity, including potential mergers, private equity injections, or licence adjustments.
Financial analyst Ishaya Ibrahim, in a discussion with Legit.ng, ruled out any extension from the CBN. He predicted more mergers and acquisitions among the roughly 12 to 14 banks still working to meet the target. "The industry will become globally competitive and studier and could readily support the planned $1 trillion economy," Ibrahim stated.
The ultimate outcome for customers is a banking sector emerging from this exercise stronger, better capitalised, and more transparent. With fewer weak institutions and tighter regulatory oversight, the sector is being rebuilt for long-term stability, scale, and enhanced customer confidence.
