Twenty banks meet CBN recapitalisation threshold as capital raise hits N4.05trn

NIGERIA’s banking sector recapitalisation drive has gathered significant momentum, with 20 deposit money banks already meeting the new minimum capital requirements set by the Central Bank of Nigeria (CBN), as total verified capital raised under the programme climbs to N4.05 trillion.

Governor of the apex bank, Mr Olayemi Cardoso, disclosed this on Tuesday at the close of the 304th Monetary Policy Committee (MPC) media briefing in Abuja, noting that the exercise remains firmly on track ahead of the March 31, 2026 deadline.

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

READ ALSO: UBA surpasses CBN recapitalisation benchmark with N178bn rights issue

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.

How banks raised money

A breakdown of the figure shows that N2.90 trillion, representing 71.67 percent of the total, was mobilised domestically. The remaining US$706.84 million — equivalent 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 signals broad-based support for the recapitalisation programme and growing confidence in the resilience and long-term prospects of Nigeria’s financial system.

Why recapitalisation?

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.

Cardoso explained that banks still finalising their capital plans are considering a range of strategic options, including mergers and consolidation where appropriate. He emphasised that such decisions are being driven by market realities and individual institutional strategies, within the confines of regulatory guidelines.

The governor also addressed concerns about banks currently under regulatory intervention, stating that specific legal and structural considerations influence the sequencing of recapitalisation measures for those institutions. He assured stakeholders that the CBN remains actively engaged with all relevant parties to ensure orderly and credible outcomes.

READ ALSO: Flashback: How 14 banks lost licenses in 2006 after Soludo-led recapitalisation

Importantly, Cardoso reiterated that depositors’ funds in affected institutions remain safe, with operations continuing under strict regulatory supervision. “Financial system stability remains our priority,” he said.

Industry analysts say the early compliance by 20 banks and the sizeable N4.05 trillion already raised reduce the likelihood of last-minute disruptions as the deadline approaches. They note that the pace of capital mobilisation suggests that most banks are determined to avoid regulatory sanctions or forced restructuring.

With just over a month to the cut-off date, the CBN expressed optimism that substantial alignment with the new capital requirements will be achieved across the sector. If sustained, the recapitalisation exercise is expected to reposition Nigerian banks for stronger balance sheets, improved lending capacity, and enhanced investor confidence in Africa’s largest economy.