The CBN has confirmed that 16 Nigerian banks have now met its updated recapitalisation requirements, marking a major step in a sweeping overhaul of the banking sector underway ahead of the March 31, 2026 deadline.
Under the recapitalisation framework, banks with different licence types face different capital thresholds — for instance, international-authorised commercial banks must raise paid-up capital to ₦500 billion, while national banks have a ₦200 billion minimum. Non-interest banks, regional banks, and merchant banks also have adjusted—but lower—thresholds specific to their scope of operations.
CBN’s governor described the progress as satisfying, noting that the recapitalisation drive is proceeding “in an orderly manner” and in line with the regulator’s expectations.
🏦 Why This Matters
- Stronger financial buffers: Raising paid-up capital and share premium strengthens banks’ balance sheets, giving them greater capacity to absorb losses, extend loans, and manage risks — both home and abroad.
- Improved resilience and credibility: With higher capital, banks are better positioned to withstand economic shocks, credit risks, and market volatility. For customers and investors, this translates into greater confidence in the stability and safety of Nigeria’s banking system.
- Support for economic growth: Better-capitalised banks can expand lending to businesses, households, and infrastructure projects — a crucial foundation if Nigeria aims to accelerate growth and meet long-term economic goals.
- Potential consolidation and market shake-up: As smaller or weaker banks struggle to meet the thresholds, some may be pushed to merge, restructure, or exit — reshaping competition in the banking sector.
⚠️ Risks and Challenges Ahead
While the milestone is welcome, the recapitalisation drive also underscores the underlying fragility that has forced banks to scramble for capital. Many mid-tier or regional banks may still find it difficult to meet the requirements without restructuring.
Moreover, the CBN has made clear that only paid-up capital and share premium count toward the thresholds — reserves and retained earnings do not qualify. This shifts the burden onto new capital injections from shareholders or investors, not on accumulated profit.
There’s also the challenge of maintaining adequate governance, transparency, and risk-management standards — especially if recapitalisation leads to rapid expansion or cross-border operations. The CBN has pledged strict oversight and enforcement of “fit and proper” criteria for shareholders, board members, and senior management.
✅ What This Means for Nigerians
- For individuals and businesses, a stronger banking sector should inspire greater confidence in deposit safety, credit availability, and banking services.
- For entrepreneurs and SMEs, more robust banks may translate to easier access to funding, potentially unlocking growth and investment across sectors.
- For the economy at large, the recapitalisation drive may help stabilise the financial system, attract foreign investment, and underpin long-term growth aspirations.
📚 References
- Cardoso: 16 banks have met CBN recapitalisation threshold — Nairametrics Nairametrics
- 16 banks fully comply with recapitalisation requirements — CBN — The Nation Newspaper The Nation Newspaper
- Cardoso: 16 banks have met CBN’s capital requirements — TheCable TheCable
- With 6 months to go, only 6 listed banks have met CBN recapitalization target — see list — Nairametrics Nairametrics
- 14 banks fully met new capital requirement — Vanguard / CBN recapitalisation update (Sept 2025) Vanguard News+1
- CBN circular detailing revised minimum capital base — official recapitalisation guidelines document (March/April 2024) Central Bank of Nigeria+1
- Previous coverage — “Nigeria’s central bank sets minimum capital base for banks” (March 2024) — Reuters reuters.com
