With fewer than 90 days left before the Central Bank of Nigeria’s (CBN) March 31, 2026 recapitalisation deadline, at least 10 Nigerian banks are under growing pressure to shore up their capital bases or consider alternative survival options.
Banks still racing against time include Keystone Bank, Parallex Bank, Polaris Bank, Signature Bank, TAJBank, Citibank Nigeria and Standard Chartered Bank Nigeria. Also on the list are FBN Quest Merchant Bank, Coronation Merchant Bank and Rand Merchant Bank.
Industry watchers say these lenders must either complete their capital raising plans, pursue mergers, or exit the market if they fail to meet the new regulatory thresholds.
In contrast, First Bank Nigeria, Fidelity Bank and FSDH Merchant Bank have recently crossed the recapitalisation line, joining a growing list of compliant institutions. Analysts expect more banks to announce successful capital raises between next week and the end of the month.
Records show that 16 banks had already met the revised capital requirements for their respective licence categories by the end of last year. These include Access Holdings, Zenith Bank, GTBank, Ecobank, Stanbic IBTC, Wema Bank, Jaiz Bank, Lotus Bank, Providus Bank, Greenwich Merchant Bank and PremiumTrust Bank. Others are Globus Bank, United Bank for Africa, Nova Bank, Sterling Bank and Citibank Nigeria.
More recently, First Bank, Fidelity Bank and FSDH Merchant Bank added their names to the list of compliant lenders.
Fidelity Bank Plc, in particular, strengthened its capital position after raising about ₦250 billion through a private placement that opened and closed on December 31, 2025. The offer reportedly attracted strong investor interest, reflecting confidence in the bank’s financial performance and track record.
A source familiar with the transaction described the swift completion as a significant milestone for Nigeria’s capital market, noting that NGX rules typically allow up to 10 days for private placements.
The bank is targeting the CBN’s ₦500 billion minimum capital requirement for institutions with international banking licences ahead of the March 2026 deadline. Market sources estimate that the funds raised exceeded Fidelity Bank’s capital shortfall of ₦194.5 billion, placing it among the better-capitalised Nigerian banks with international operations.
Although the CBN is yet to formally validate the updated capital positions of some lenders, several are believed to have comfortably met the benchmark, while others are expected to do so shortly. An industry insider, who spoke on condition of anonymity, said announcements from more banks are likely to begin from next week.
CBN Governor, Olayemi Cardoso, had late last year acknowledged the steady progress being made by the banking sector. According to him, several lenders had already reached the new capital thresholds, while others were advancing steadily and appeared well positioned to meet the March 31, 2026 deadline.
He disclosed that 27 banks had accessed the capital market through public offers and rights issues, with 16 already meeting or surpassing the new benchmarks. Cardoso added that stress tests conducted in 2025 showed the banking system remained resilient, with key financial soundness indicators within prudential limits.
Despite these gains, some banks are still refining their recapitalisation strategies. First City Monument Bank (FCMB) Group is among those nearing completion, having secured shareholder approval at an Extraordinary General Meeting to raise up to ₦400 billion to retain its international banking licence.
Group Chief Executive Officer, Ladi Balogun, said the additional capital would be used to strengthen the bank’s capital adequacy ratio and support future growth.
Analysts note that while large-scale mergers remain limited, changes in ownership structures are becoming more likely as banks seek fresh investors. Head of Financial Institutions Ratings at Agusto & Co, Ayokunle Olubunmi, said only a handful of lenders remain under significant strain.
“Nothing dramatic has happened yet in terms of mergers, but clearer outcomes could emerge by January or February. Capital raising through private placements and rights issues will also result in shareholder dilution for those who do not participate,” he said.
The recapitalisation drive has also triggered strategic shifts across the sector. Nova Bank, for instance, opted to downgrade its licence to regional banking status, reducing its capital requirement to ₦50 billion.
Meanwhile, consolidation is gathering momentum, with Union Bank completing its merger with Titan Trust Bank, while Providus Bank is set to combine with Unity Bank—a move that would create Nigeria’s ninth-largest bank by assets.
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