Nigeria banking recapitalisation update: 13 banks rush to meet CBN capital requirements as March 31 deadline approaches, raising merger and consolidation prospects

Nigeria’s banking sector is under renewed scrutiny as 13 banks race to meet the Central Bank of Nigeria’s (CBN) new minimum capital requirements ahead of the March 31, 2026, deadline.

Also read: Most Personal Pension Plan Accounts Remain Unfunded in Nigeria

Analysts warn that while many institutions are on track, mergers and other structural changes could reshape the industry landscape.

At the conclusion of Tuesday’s Monetary Policy Committee meeting, CBN Governor Olayemi Cardoso reported that 20 banks have already met the required capital thresholds, while 13 others are in advanced stages of capital-raising.

Management and financial consultant Boniface Chizea praised the sector’s resilience.

“Previously, sudden increases, like when the minimum capital rose from N2 billion to N24 billion, triggered widespread mergers and panic. This time, banks appear better prepared, perhaps drawing on reserves or anticipating the requirements. If they continue on this trajectory, the feared shock to the system may be avoided,” he said.

Chizea noted that for banks unable to meet the requirements independently, mergers may become the only viable solution, stressing that depositor protection must remain central.

“Capitalisation challenges must not translate into restricted access to deposits or other adverse effects for the public,” he added.

Tunde Amolegbe, CEO of Arthur Steven Asset Management, highlighted that potential consolidation discussions could be occurring privately, citing historical precedents during former CBN Governor Chukwuma Soludo’s tenure.

He also noted alternative options for banks, including private placements and licence downgrades, which could influence outcomes before the deadline.

Ayokunle Olubunmi, Head of Financial Institutions Ratings at Agusto & Co, confirmed that most banks listed as “advanced” in capital-raising have already secured funds, with the CBN verifying the amounts.

He clarified that banks under regulatory intervention, three in total, face complex issues beyond capital, including shareholder arrangements and internal governance.

Under the new rules, banks with international licences must hold a minimum paid-up capital of N500 billion, national banks N200 billion, regional commercial and merchant banks N50 billion, and non-interest banks N20 billion for national licences and N10 billion for regional licences.

Also read: Atletico Madrid and EPL Clubs Chase Nigerian-Born Defender Ahanor

As the March 31 deadline approaches, the coming weeks are expected to be decisive for Nigeria’s banking sector, potentially determining whether the industry continues on its current course or undergoes further consolidation to ensure stability.