An international rating agency has stated that Nigerian banks are progressing well towards meeting the March 2026 recapitalisation deadline set by the Central Bank of Nigeria. The agency highlighted that most banks have either raised capital or initiated the process to do so to comply with the new minimum capital requirements issued by the Central Bank in March 2024.
According to the new guidelines, commercial banks with international licenses must have N500bn in capital, national commercial banks need N200bn, and regional commercial and merchant banks require N50bn. Banks can achieve compliance through equity injections, mergers, acquisitions, or license changes.
Notably, Fitch-rated banks in Nigeria have shown significant progress in meeting the new paid-in capital requirements, with major banks like Access Holdings and Zenith Bank securing enough fresh capital to meet the N500bn requirement for an international license. Other banks are also in the process of raising capital to comply with the new regulations.
While some banks like Ecobank Nigeria Limited and Jaiz Bank have already met their requirements with small capital injections, others are still working towards compliance. The rating agency mentioned that successful capital raisings have been observed, indicating strong investor interest in supporting banks to meet their new capital requirements.
However, third-tier banks like Union Bank of Nigeria have been slower in raising capital and may face mergers, acquisitions, or license downgrades. Overall, the agency believes that the likelihood of significant banking sector consolidation among first- and second-tier banks has decreased due to the progress made in capital raisings.
In conclusion, while challenges remain for some banks to meet the new capital requirements, the overall outlook is positive as most banks are on track to comply with the regulations by the specified deadline.