BUSINESS
BANKING SECTOR RECAPITALISATION COUNTDOWN: 19 BANKS MEET CBN’S NEW CAPITAL THRESHOLD AS FIRST BANK, FIDELITY, FSDH JOIN ELITE LIST AHEAD OF MARCH 31, 2026 DEADLINE
With less than 90 days to the Central Bank of Nigeria’s (CBN) March 31, 2026 recapitalisation deadline, Nigeria’s banking sector is witnessing accelerated compliance, as 19 banks have now met the new capital requirements across their respective licence categories. The latest entrants: First Bank Nigeria, Fidelity Bank and FSDH Merchant Bank have reinforced confidence that the industry is steadily aligning with the regulator’s sweeping reforms.
Analysts say the momentum is far from over, with expectations that several other lenders will conclude their recapitalisation plans between next week and the end of the month, further reducing the list of banks yet to clear the regulatory hurdle.
Sixteen banks had earlier met the revised capital thresholds in 2025. These include Access Holdings, Zenith Bank, GTBank, Ecobank, Stanbic IBTC, Wema Bank, Jaiz Bank, Lotus Bank, Providus Bank, Greenwich Merchant Bank and PremiumTrust Bank, alongside Globus Bank, Citibank Nigeria, United Bank for Africa, Nova Bank and Sterling Bank. The recent inclusion of First Bank, Fidelity Bank and FSDH Merchant Bank brings the total number of compliant banks to 19.
A major highlight of the latest developments is Fidelity Bank Plc’s successful capital raise, estimated at approximately ₦250 billion through a private placement that opened and closed on December 31, 2025. The swift execution of the offer was driven by strong investor appetite, underpinned by the bank’s robust financial performance and consistent track record.
A source close to the lender described the rapid completion as a notable milestone for Nigeria’s capital market, particularly as NGX regulations typically allow up to 10 days for such private placements.
Fidelity Bank is targeting full compliance with the CBN’s ₦500 billion minimum capital requirement for banks with international authorisation ahead of the March 31, 2026 deadline. Market intelligence indicates that participation in the offer was restricted to a select group of pre-qualified institutional investors, many with global investment exposure.
The estimated ₦250 billion proceeds comfortably exceed the bank’s projected capital shortfall of ₦194.5 billion, positioning Fidelity Bank among the more strongly capitalised Nigerian lenders with international operations.
Although the CBN is yet to formally ratify the revised capital base of some banks, industry observers say many institutions have effectively crossed the threshold, with others close behind. An industry insider, who requested anonymity, disclosed that most banks yet to meet the requirement are expected to do so before the end of the month, with formal announcements anticipated from next week.
CBN Governor, Olayemi Cardoso, had late last year affirmed the steady progress being made by the sector, noting that “several banks have already met the new capital thresholds, while others are advancing steadily and are well positioned to comfortably meet the March 31, 2026 deadline.”
He further revealed that 27 banks had accessed the capital market through public offers and rights issues, with 16 already meeting or exceeding the new benchmarks.
According to him, stress tests conducted in 2025 showed that the banking system remained fundamentally resilient, with key financial soundness indicators meeting prudential standards across the board.
Despite the encouraging progress, a number of lenders are still refining their capital strategies. The First City Monument Bank (FCMB) Group is among those at advanced stages of capital raising and regulatory verification. Recently, shareholders of FCMB Group Plc approved an increase in capital of up to ₦400 billion at an Extraordinary General Meeting to enable the group retain its international banking licence beyond the March 2026 deadline.
Group Chief Executive Officer, Ladi Balogun, said “the additional capital will be deployed to strengthen our capital adequacy ratio and accelerate growth.”
Market analysts note that while mergers and acquisitions have remained relatively muted so far, ownership restructuring is becoming increasingly likely as banks court new investors. Head of Financial Institutions Ratings at Agusto & Co, Ayokunle Olubunmi, observed that only a handful of institutions are under intense pressure.
“Nothing dramatic has happened yet on the mergers front, but by January or February, we could see clearer outcomes.
“Capital raising through private placements and rights issues will inevitably lead to dilution for shareholders who do not participate,” he said.
The recapitalisation race has also triggered strategic realignments across the sector. Nova Bank has opted to downgrade its licence to regional banking status, reducing its capital requirement to ₦50 billion to beat the deadline. Meanwhile, consolidation is gaining traction, with Union Bank merging with Titan Trust Bank, and Providus Bank set to merge with Unity Bank, a move expected to create Nigeria’s ninth-largest lender by assets.
Still navigating the recapitalisation crossroads, with options ranging from fresh capital injection to mergers or potential exit, are Keystone Bank, Parallex Bank, Polaris Bank, Signature Bank, TAJBank, Citibank Nigeria and Standard Chartered Bank Nigeria. Others include FBNQuest Merchant Bank, Coronation Merchant Bank and Rand Merchant Bank, as the countdown to the March 31, 2026 deadline continues.