Nigerian banks have successfully raised N1.7 trillion in the first phase of the Central Bank of Nigeria’s (CBN) recapitalization initiative.

This development comes as Nigeria’s banking sector recorded a strong start in 2025, with the NGX Banking Index surging by 9.76% in January, according to a corporate report from the Nigerian Exchange Group on Tuesday.

The impressive performance was driven by increased investor confidence, spurred by the ongoing recapitalization, which is set to conclude in March 2026.

Leading Banks in the Recapitalization Drive

Wema Bank Plc led the gainers with a 25.8% increase in share price, rising from N9.10 to N11.45. FCMB Group Plc followed with a 17.55% rise, closing at N11.05 from N9.40, while Stanbic IBTC Holdings gained 11.71%, moving from N57.60 to N64.35 per share.

Major banks such as Zenith Bank, UBA, and GTB also contributed significantly to the sector’s impressive performance during the period under review.

Recapitalization Requirements

The CBN had announced the recapitalization exercise on March 28, 2024, introducing new capital requirements for banks operating in the country:

• Commercial banks with international licenses must maintain a minimum capital of N500 billion.
• National commercial banks require N200 billion.
• Regional commercial and merchant banks must meet an N50 billion threshold.

Industry Outlook

Financial experts anticipate continued momentum in the coming months. According to Olatunde Amolegbe, Managing Director of Arthur Steven Asset Management, the recapitalization drive is expected to enhance market liquidity, financial stability, and long-term growth in Nigeria’s banking sector.

As the banking industry moves toward compliance with the CBN’s new capital framework, stakeholders remain optimistic about the sector’s resilience and expansion.