Nigeria’s banking sector is undergoing its most significant recapitalisation drive in over a decade, with financial institutions adopting varied strategies to meet the Central Bank of Nigeria’s (CBN) new capital requirements ahead of the March 31, 2026 deadline.
The recapitalisation policy, introduced in March 2024, established a three-tier licensing structure:
– Regional banks: ₦50 billion minimum capital
– National banks: ₦200 billion
– International banks: ₦500 billion
The initiative aims to fortify the banking system, enhance resilience to economic shocks, and enable banks to support large-scale infrastructure and development projects.
Among the banks opting for a phased strategy is FCMB Group Plc. In 2024, it raised ₦147.5 billion through an oversubscribed public offer, surpassing its target by 33% and securing its national banking licence well ahead of schedule. The offer attracted over 42,000 investors, reflecting strong market confidence.
Building on this momentum, FCMB launched a second capital raise of ₦160 billion in October 2025. By December, shareholders had approved a broader ₦400 billion capital programme, giving the bank flexibility to pursue additional funding through public offers, private placements, or asset sales.
This measured approach positions FCMB between two camps: banks that have already crossed the ₦500 billion threshold and those content with national licences.
Several major banks including Access Bank, Zenith Bank, GTBank, UBA, Fidelity Bank, and First Bank have already surpassed the ₦500 billion mark. These institutions pursued aggressive capital-raising strategies, often involving rights issues, private placements, and asset divestments. While this has secured early regulatory clarity and market advantage, it has also exposed shareholders to dilution and market volatility.
Conversely, banks like Wema Bank, Stanbic IBTC, Citibank Nigeria, and Standard Chartered Nigeria have opted to remain national, meeting the ₦200 billion requirement and focusing on domestic operations.
The recapitalisation drive has triggered a wave of mergers, asset sales, and licence downgrades, particularly among smaller banks prioritising sustainability over expansion. Islamic and non-interest banks have largely met their capital obligations, underscoring the resilience of niche segments.
Macroeconomic challenges such as inflation, currency instability, and tight global funding have made capital raising more complex. In this context, phased recapitalisation offers a way to manage valuation risks and investor sentiment, even if it invites closer regulatory scrutiny.
As the 2026 deadline approaches, the focus is shifting from announcements to execution. For FCMB and others pursuing a phased path, the coming months will determine whether they ascend to international status or consolidate as robust national players in a transformed financial landscape.