As Nigeria’s banking sector recapitalisation exercise enters a crucial phase, eight banks have successfully met their capital targets well ahead of the Central Bank of Nigeria’s (CBN) March 2026 deadline signaling renewed stability and resilience in the financial system.

Access Holdings, Zenith Bank, Stanbic IBTC, Wema Bank, Lotus Bank, Jaiz Bank, Providus Bank, and Greenwich Merchant Bank are the institutions that have crossed the capital threshold. Their achievement underscores the strength of the Nigerian banking system in the face of rigorous regulatory reforms.

Announced on March 28, 2024, and effective from April 1, the CBN’s recapitalisation directive aims to bolster financial institutions to support the country’s ambitious plan to grow its Gross Domestic Product (GDP) to $1 trillion. The Monetary Policy Committee recently reaffirmed the sector’s sustained stability, attributing it to strong Financial Soundness Indicators and the strategic impact of the recapitalisation.

CBN Governor Olayemi Cardoso, in outlining the rationale for the reform, stressed the necessity of a robust capital base for banks to function effectively in a trillion-dollar economy. “Will Nigerian banks have sufficient capital relative to the financial system’s needs in servicing a $1tr economy in the near future? In my opinion, the answer is no unless we take action,” Cardoso said.

The recapitalisation thresholds require commercial banks with international, national, and regional licenses to meet minimum capital requirements of N500 billion, N200 billion, and N50 billion, respectively. Merchant banks must meet N50 billion, while non-interest banks need N20 billion and N10 billion depending on the scope of their operations.

Crucially, the CBN has narrowed the definition of qualifying capital to only include paid-up share capital and share premium, excluding retained earnings and other reserves. This means even banks with previously sufficient shareholder funds must raise fresh capital.

Cardoso emphasized that the policy is more than a regulatory requirement it is a driver of economic inclusivity. “By empowering banks to extend more credit to MSMEs, we stimulate job creation and boost productivity,” he said, adding that improved capital allows for investment in financial technology to enhance inclusion, particularly in underserved communities.

In alignment with this vision, the CBN said it remains committed to monitoring financial institutions with early-warning frameworks and risk-based supervision, ensuring that emerging risks are promptly mitigated to safeguard depositor funds.

The apex bank is also introducing reforms to enhance the role of Other Financial Institutions (OFIs), such as Primary Mortgage Banks and Microfinance Banks, with strategies to improve their efficiency and credit penetration. These include integration into the Global Standing Instruction platform and legal frameworks to reduce loan defaults.

Deputy Governor of the CBN, Emem Usoro, described recapitalisation as a strategic pillar for national development. “As we work towards building a $1tn economy, we must ensure our banks are adequately capitalised to fund and power the economy,” she stated.

Industry leaders have also lent their voices in support of the initiative. Oliver Alawuba, Group Managing Director of United Bank for Africa, praised the recapitalisation policy as a forward-thinking approach to strengthen resilience against inflation, currency shocks, and global instability.

Alawuba noted that Nigerian banks’ assets accounted for only 11.97 per cent of GDP in 2024, far behind developed economies where banking assets constitute up to 150 per cent. He commended the CBN’s new capital directives as vital to enabling Nigerian banks to support large-scale infrastructure, oil and gas, agriculture, and emerging industries such as fintech and green energy.

CBN’s Director of Banking Supervision, Olubuka Akinwunmi, also confirmed that all banks remain within prudential thresholds, with most actively raising capital. He hinted that mergers and acquisitions may emerge as strategic responses to the recapitalisation drive.

To bolster regulatory effectiveness, the CBN has imposed penalties totaling N15 billion on 29 banks for violations including anti-money laundering and counter-terrorism financing breaches. These banks have also been directed to address systemic lapses contributing to the infractions.

As the March 2026 deadline draws closer, the successful capital raise by the eight banks marks a significant milestone in Nigeria’s journey toward a more resilient, well-capitalised, and globally competitive financial sector. The recapitalisation is expected to drive broader economic development, expand credit access, and strengthen Nigeria’s position in the global financial landscape.

With continued policy implementation, collaboration, and reform, the recapitalisation initiative is set to play a transformative role in achieving Nigeria’s trillion-dollar economic ambition.