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Five Banks Reach CBN Recapitalisation Target Before Deadline

Monday Yakubu by Monday Yakubu
July 7, 2025
in Business
0

Central Bank of Nigeria, Abuja

At least five Nigerian banks have successfully met the new capital requirements set by the Central Bank of Nigeria (CBN), ahead of the 2026 deadline. The banks include Access Bank, Zenith Bank, Ecobank Nigeria, Lotus Bank, and Jaiz Bank.

In March 2024, the CBN directed commercial banks to increase their capital base. Banks with international licenses must now have a minimum of ₦500 billion, national banks ₦200 billion, and regional banks ₦50 billion. Non-interest banks are also expected to meet new minimum capital levels of ₦20 billion for national and ₦10 billion for regional licenses.

Access Bank Leads the Pack

Access Bank was the first to meet the ₦500 billion requirement for banks with international authorization. Its parent company, Access Holdings, raised ₦351 billion through a Rights Issue, pushing the bank’s total capital to ₦600 billion.

Zenith Bank followed closely, raising ₦350.4 billion through a combination of a rights issue and a public offer. The move increased its capital to ₦614.65 billion, which is over ₦114 billion above the required threshold.

Ecobank, Lotus Bank, and Jaiz Bank Also Comply

Ecobank Nigeria, a national bank, has also met its ₦200 billion target. Although it still falls short of the 10% capital adequacy ratio, Fitch Ratings says the bank is already planning further capital injections.

Lotus Bank, a non-interest national bank, confirmed that it had surpassed the ₦20 billion requirement even before the CBN directive.

An executive director, Isiaka Ajani-Lawal, said, “Even before the CBN announced the new minimum capital base, we already had it as a national bank.”

Similarly, Jaiz Bank crossed the threshold by listing ₦10.04 billion from a private placement on the Nigerian Exchange in early 2025.

GTCO, First HoldCo, and Others Racing Against Time

Other banks are still working to meet the deadline. Guaranty Trust Holding Company (GTCO) is raising $100 million from the international market and plans to list shares on the London Stock Exchange.

GTCO’s Group CEO, Segun Agbaje, said, “This offering and transition to a full listing on the London Stock Exchange represents a pivotal moment in GTCO’s growth story.”

GTCO previously raised ₦209 billion in July 2024 and aims to use the new funds to recapitalize GTBank Nigeria.

First HoldCo also plans to raise ₦350 billion by the second quarter of 2025. If successful, it will bring its paid-up capital to ₦748 billion.

Also Read:

  • Nigerians Earning Below N250,000 Monthly Will Not Pay Income Tax – Oyedele
  • Petrol Marketers Refuse to Cut Prices Despite Dangote’s Reduction

Many Banks Still Have a Long Way to Go

According to a report by Afrinvest Research, banks like Fidelity, FCMB, Sterling, Stanbic IBTC, and UBA still need to raise ₦733.7 billion combined. Wema Bank, however, is on track to meet its ₦200 billion goal through a ₦150 billion rights issue and special placement.

Some banks—such as Union Bank, Polaris Bank, and Keystone Bank—have not yet made public moves toward recapitalisation. Unity Bank is merging with Providus Bank and has received ₦700 billion in financial support from the CBN but still needs more funds to keep its national license.

Mergers and Acquisitions Expected for Smaller Banks

Experts say mergers and acquisitions are likely among smaller banks like Globus Bank, Titan Trust Bank, and Premium Trust Bank.

Fitch Ratings said in February 2025 that “M&A activity and license downgrades remain more likely among third-tier banks.”

However, foreign-owned banks such as Standard Chartered Bank and Citibank Nigeria are in stronger positions due to support from their international parent companies.

Analysts See Bright Future for Banking Sector

Analysts at Afrinvest and CardinalStone believe the outlook for Nigeria’s banking sector is positive.

“We anticipate further momentum as banks accelerate recapitalisation efforts,” Afrinvest said.

CardinalStone added, “The CBN’s recent directive to exit forbearance loans will strengthen banks’ asset quality and capital discipline, helping build a more resilient financial system.”

Tags: BanksCBNDeadlineReachRecapitalisationTarget

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