Nigeria’s banking sector is entering a decisive phase as the March 31, 2026 recapitalisation deadline set by the Central Bank of Nigeria (CBN) edges closer. With less than three months to go, a group of lenders is still under pressure to raise fresh capital, restructure, or pursue alternative options to remain in operation under the new regulatory regime.
Banks widely regarded as yet to fully meet the new capital thresholds include Keystone Bank, Parallex Bank, Polaris Bank, Signature Bank, TAJBank, Citibank Nigeria, Standard Chartered Bank Nigeria, FBNQuest Merchant Bank, Coronation Merchant Bank, and Rand Merchant Bank. For these institutions, the options are narrowing—meet the requirements, merge with stronger players, adjust licence categories, or risk exiting the market.
On the other side of the divide, several banks have made strong progress. First Bank Nigeria, Fidelity Bank, and FSDH Merchant Bank have recently joined the list of recapitalised institutions, adding to those that crossed the threshold in 2025. The growing list signals steady momentum in the sector, even as a few lenders race against time.
Fidelity Bank’s recent capital-raising effort has stood out. The bank reportedly secured about ₦250 billion through a private placement that was concluded on December 31, 2025. Strong investor demand allowed the process to close quickly, comfortably covering its estimated capital shortfall and strengthening its position as an internationally authorised bank.
Regulators have continued to express confidence in the process. CBN Governor Olayemi Cardoso has indicated that while not all banks are done, most are well advanced, with stress tests showing the system remains resilient. According to the apex bank, dozens of institutions have tapped the capital market through public offers and rights issues, with many already meeting or exceeding the new benchmarks.
Some lenders are still fine-tuning their strategies. FCMB Group, for instance, has received shareholder approval to raise up to ₦400 billion to shore up its capital base and retain its international licence. Management says the move is aimed at strengthening buffers and positioning the group for future expansion.
Elsewhere, strategic shifts are becoming more visible. Nova Bank has chosen to downgrade its licence to a regional one, significantly lowering its capital requirement. Consolidation is also gathering pace, with recent and proposed mergers expected to reshape the competitive landscape and create larger, more resilient institutions.
Industry analysts believe the most intense phase of the recapitalisation race is unfolding now. While large-scale mergers remain limited, new investors are coming in, ownership structures are changing, and shareholders who do not participate in capital raises may face dilution.
As the deadline approaches, the coming weeks are expected to deliver a wave of final announcements, bringing clarity to which banks have secured their place in Nigeria’s post-recapitalisation banking era and which ones have not.
