Nigeria’s banking sector is undergoing one of the most transformative capital overhauls in its history, as commercial banks scramble to meet the Central Bank of Nigeria’s (CBN) ambitious recapitalisation deadline of March 31, 2026.
A fresh analysis by Nairametrics of 11 listed banks shows that total paid-up share capital and share premium surged to N3.74 trillion as of Q3 2025, compared to N2.92 trillion in FY 2024 and N1.71 trillion in FY 2023, representing a 118% increase in less than two years.
The recapitalisation push, launched formally by the CBN in April 2024, has already started to reshape the structure and competitiveness of the industry.
Despite currency depreciation pressures, the capital base, valued in dollar terms, has grown from around $1.9 billion in 2023 to approximately $2.5 billion by Q3 2025, based on average official exchange rates.
This increase reflects a rare instance where banks have not only absorbed macroeconomic shocks but also outpaced them through equity market actions, a signal likely to be well-received by foreign investors and credit rating agencies.
Recapitalisation Mandate: New Thresholds, New Metrics
Under the CBN’s March 2024 recapitalisation circular, the minimum capital requirements were significantly increased:
- N500 billion for international commercial banks
- N200 billion for national commercial banks
- N50 billion for regional commercial banks
- N20 billion and N10 billion for national and regional non-interest banks respectively
Importantly, only paid-up share capital and share premium are recognised for meeting the new requirements.
This narrow definition excludes retained earnings and reserves that previously formed a significant portion of capital adequacy calculations.
The 24-month compliance window runs from April 1, 2024 to March 31, 2026, with the CBN confirming that 16 banks have met or are on track to meet the capital thresholds.
Zenith, Access, GTCO Dominate Capital Rankings
Zenith Bank and Access Corp now lead the capital league table, each boasting over N590 billion in paid-up equity—well above the N500 billion minimum for international banks.
GTCO has also comfortably crossed the threshold, solidifying its international status.
FirstBank, Ecobank, UBA, and Fidelity follow as a strong second tier, each sitting between N300 billion and N400 billion.
Nairametrics’ review of Q3 2025 filings from major listed banks reveals a distinct capital hierarchy:
- Zenith Bank – N614.6 billion
- Access Corporation – N594.9 billion
- GTCO – N507.6 billion
- First Bank Holdings – N398.0 billion
- Ecobank Nigeria – N353.5 billion
- UBA – N350.1 billion
- Fidelity Bank – N305.6 billion
- Stanbic IBTC – N255.0 billion
- Wema Bank – ~N210–N215 billion
- Sterling Bank – N157.0 billion
- Jaiz Bank – N28.7 billion
Most Aggressive Capital Builders
Several banks have posted extraordinary capital growth since FY 2023:
- GTCO: +267%, rising from ~N138 billion to N507.6 billion
- UBA: +202%, growing from ~N116 billion to N350.1 billion
- Wema Bank: surged from ~N15 billion to over N210 billion
- First Bank Holdings: +58%, up to N398 billion
These figures highlight the scale of recapitalisation efforts, with banks deploying a mix of rights issues, private placements, equity conversions, and strategic investor participation to meet regulatory demands.
On the other hand, institutions like Zenith and Access made their capital moves earlier, with little change between FY 2024 and Q3 2025, indicating pre-emptive compliance.
Strategic Outlook: Who’s On Track?
While some banks have met the required levels, others are closing in:
- Fidelity Bank (N305.6 billion) appears aligned with a national or possibly international licence, depending on final strategy.
- FirstHoldCo (N398 billion) needs a final capital push to retain full international status.
- Ecobank Nigeria (N353.5 billion) may continue to rely on pan-African group capital strategies.
- Sterling Bank (N157 billion) is currently suited for a regional or national licence but has room to grow.
With just under six months to the deadline, more capital market activity is expected.
Nairametrics Analysts anticipate rights issues, tier-1 injections, loan-to-equity conversions, and potential mergers and acquisitions, particularly among mid-tier or regional banks.
Capital Meets a Softer Monetary Cycle
The capital race is unfolding alongside expectations of a monetary policy pivot.
Inflation is showing signs of moderation, and several analysts project CBN rate cuts in 2026 if macroeconomic stability continues.
This intersection of stronger capital and easing rates could alter the sector’s earnings profile.
Lower interest rates typically compress net interest margins (NIMs), particularly for banks that benefitted from elevated yields in 2024–2025.
However, banks with strong capital buffers and low-cost deposit bases—like Zenith, Access, GTCO, UBA, and Stanbic—are well-positioned to offset margin compression with loan growth, non-interest income, and market share expansion.
Additionally, stronger capital enhances resilience against FX shocks, credit impairments, and mark-to-market losses—risks that eroded shareholder value in recent years.
Implications for Investors and the Industry
Beyond compliance, the recapitalisation race is increasingly strategic. Early movers not only de-risk their regulatory standing but also gain first-mover advantage in consolidation opportunities.
As weaker banks struggle to meet thresholds, acquisition interest may rise, particularly from capital-rich players aiming to expand retail footprints, SME lending, or digital platforms.
For investors, the key question in 2026 may shift from “which banks are profitable?” to “which banks are built to lead Nigeria’s next credit and investment cycle?”
With over N3.7 trillion in capital already mobilised, the recapitalisation wave is not merely a regulatory hurdle; it is a structural reset.