The Nigerian banking landscape is undergoing a significant transformation as the March 31 deadline for the Central Bank of Nigeria's (CBN) recapitalisation directive approaches. The number of financial institutions that have successfully scaled the new capital hurdle has now exceeded 20, marking a pivotal moment for the sector's strength and future stability.
Major Banks Cross the Capital Finish Line
The tally of fully-recapitalised banks is swiftly heading towards 24, with Sterling Bank Plc being the latest to join the growing list. This follows announcements from First Bank of Nigeria Limited and Standard Chartered Bank Nigeria Limited confirming they have fully met the CBN's stipulated capital threshold. Their success pushes the count beyond the 18 operators the apex bank reported as compliant back in December 2025.
United Bank for Africa (UBA) has also officially crossed the line, concluding a massive N178.3 billion rights issue that bolstered its capital base. Meanwhile, Sterling Bank's updated capital position has received crucial regulatory validation, confirming it has cleared the hurdle to retain its national banking licence. This achievement was driven by a series of targeted capital raises orchestrated by its parent company, Sterling HoldCo, culminating in a public offer that raised over N88 billion, proceeds which have secured the necessary regulatory approval.
Non-Interest Banks and the Path to Compliance
The recapitalisation wave is not limited to conventional banks. Key players in the non-interest banking (NIB) segment, including The Alternative Bank, Jaiz Bank, TAJBank, and Lotus Bank, had previously confirmed receiving clearance from the CBN. This broad-based compliance indicates a sector-wide effort to align with the new regulatory framework.
The policy, initiated in 2024, sets a clear capital benchmark: N500 billion for banks with international authorisation, N200 billion for national banks, N50 billion for regional banks, and N20 billion and N10 billion for national and regional non-interest banks, respectively. Banks have utilised the 24-month window, ending March 31, 2026, to launch various capital-raising programmes, primarily rights issues and public offers.
Building Resilience and a Warning from History
This exercise has dramatically reshaped bank balance sheets, significantly increasing their issued share capital. The introduction of these newly-issued shares on the Nigerian Exchange Limited (NGX) has also injected fresh liquidity and boosted trading activities in the market. The current drive echoes the historic 2004/2005 consolidation led by former CBN Governor, Prof. Charles Soludo, which shrank the number of banks from 89 to 25 and created institutions capable of underwriting large-scale projects.
However, financial experts are sounding a note of caution, drawing lessons from the past. They warn that the true value of this recapitalisation for the Nigerian economy will not be determined by the size of the banks alone. The critical factor will be how these institutions deploy their enhanced financial strength and manage their risk frameworks. The post-2005 era was marred by excessive risk-taking and poor corporate governance, which ultimately triggered a major banking crisis in 2008, leading to bank nationalisations and the creation of the Asset Management Corporation of Nigeria (AMCON).
As of January 14, 2026, industry insights suggest about 23 banks have met the new capital requirement. The process was notably led by Access Bank, which raised N351 billion through a rights issue. Another systemically important bank (SIB), Zenith Bank, raised over N350 billion via a combination of rights issues and public offers, elevating its eligible capital to N614 billion. The other SIBs—Guaranty Trust Bank, FirstBank, and UBA—have all successfully met their thresholds.
While most local banks tapped the equity market, international subsidiaries like Citibank and Standard Chartered Nigeria relied on capital injections from their global parent companies to achieve compliance. With most tier-one and tier-two banks now meeting the requirements, the stage is set for a theoretically stronger and more resilient Nigerian banking sector, provided the lessons of history are heeded.
