SunTrust Bank exceeds N50bn capital requirement ahead CBN deadline

SUNTRUST Bank Nigeria Limited has surpassed the Central Bank of Nigeria’s (CBN) minimum recapitalisation threshold of N50 billion. The development comes after the bank concluded its private placement exercise, boosting its total paid-up capital.

According to sources familiar with the matter, SunTrust’s paid-up capital now stands at approximately N51.1 billion, placing it comfortably above the regulatory benchmark, TheCable reported. The achievement positions the bank among the institutions that have already complied with the CBN’s directive, ahead of the March 31 deadline.

Insiders revealed that the capital injection was achieved through a structured private placement programme, which drew participation from both institutional and private investors. “The bank has successfully crossed the N50 billion threshold,” one source said. “The total paid-up capital is now in the region of N51 billion, slightly above the regulatory minimum.”

While SunTrust has met the requirement, some banks in the sector are still in the process of raising additional capital to comply with the CBN’s rules. The apex bank had, on March 29, 2024, introduced new minimum capital requirements aimed at strengthening the resilience and stability of Nigeria’s banking industry.

In response to the directive, several banks initiated plans to increase their capital through various channels, including private placements, bond issuances, and rights issues. By July 2024, only eight banks had fully complied with the recapitalisation requirements.

Two months later, CBN Governor Olayemi Cardoso confirmed that 14 banks had met the minimum capital threshold, with the number rising to 16 financial institutions by November 2025. On February 24, 2026, the governor announced that 20 banks had now met the required capital levels, raising approximately N4 trillion in total.

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Market analysts suggest that the ongoing recapitalisation programme could trigger further consolidation in the Nigerian banking sector, with at least three major mergers anticipated this year. Among them, the proposed merger between Providus and Unity banks has reportedly reached its final stages, with an official announcement expected soon.

Twenty banks meet recapitalisation

Mr Cardoso disclosed last Tuesday at the close of the 304th Monetary Policy Committee (MPC) media briefing in Abuja that 20 banks had met the set recapitalisation, noting that the exercise remained firmly on track ahead of the March 31, 2026 deadline.

According to Cardoso, beyond the 20 banks that had fully complied with the new capital thresholds, an additional 13 institutions were at advanced stages of their capital-raising processes and were expected to conclude within the regulatory timeframe. He said the level of activity had accelerated as the deadline approaches, reflecting the seriousness with which banks were treating the exercise.

“As of February 19, 2026, the total verified and approved capital raised stands at N4.05 trillion,” Cardoso said, underscoring what he described as strong investor participation and confidence in Nigeria’s banking sector.

Economy Post reported in January that Fidelity, Globus, Wema, Providus, Rand, Taj, Nova and FSDH Merchant banks had joined Zenith, Access, GTCO, UBA, FirstHoldco, among others, in the list of deposit money banks that had met the recapitalisation requirements.

Also, as at January, FCMB, Alternative, Lotus, Summit, Parallex, Keystone, SunTrust and Sterling had not met the requirements. Sterling Bank has since met the requirements.

A breakdown of the figure showed that N2.90 trillion, representing 71.67 percent of the total, was mobilised domestically. The remaining US$706.84 million, quivalent to approximately N1.15 trillion or 28.33 percent, came from foreign sources.

The CBN governor noted that this mix of domestic and international funding signaled broad-based support for the recapitalisation programme and growing confidence in the resilience and long-term prospects of Nigeria’s financial system.

The recapitalisation policy, unveiled as part of broader financial sector reforms, seeks to strengthen banks’ capacity to support economic growth, absorb shocks, and compete effectively in both local and global markets. Under the framework, commercial banks with international authorisation are required to raise their minimum capital base to N500 billion. Those with national authorisation must meet N200 billion, while regional commercial banks are expected to hold N50 billion.

Merchant banks are required to maintain N50 billion in capital, while non-interest banks must meet thresholds of N20 billion for national operations and N10 billion for regional licences.