As the March 31, 2026 deadline for Nigeria’s banking sector recapitalisation programme draws closer, regulatory attention has narrowed to a small number of lenders yet to meet the new capital requirements.
Among banks listed on the Nigerian Exchange, Sterling Bank and FCMB Group stand out as the only institutions that have not fully complied with the Central Bank of Nigeria’s revised minimum paid-in capital thresholds.
The recapitalisation programme, introduced by the CBN to strengthen financial system stability and resilience, requires commercial banks with international licences to raise their minimum paid-in capital to N500 billion. The policy represents the most significant capital overhaul in Nigeria’s banking industry in more than a decade and has reshaped balance-sheet strategies across the sector.
Since the policy was unveiled, banks have responded with a mix of rights issues, private placements, asset sales and internal restructuring. These actions have been driven by the need to meet regulatory standards while maintaining investor confidence in a period marked by macroeconomic pressures such as currency volatility, high inflation and tighter global financial conditions.
Recent disclosures suggest that the recapitalisation process is now at an advanced stage for most lenders. Over the past week alone, several major banks, including First HoldCo Plc, United Bank for Africa and Fidelity Bank, announced successful capital-raising transactions that lifted them above the regulatory minimum.
First HoldCo Plc, the parent company of First Bank of Nigeria, achieved compliance by combining proceeds from a rights issue and a private placement with funds generated from the sale of its merchant banking subsidiary. The transaction highlights how banks with diversified group structures are using asset rationalisation alongside equity issuance to strengthen their capital base.
Fidelity Bank also crossed the threshold following the completion of a N259 billion private placement on December 31, 2025. The capital raise increased its eligible capital from N305.5 billion to N564.5 billion, subject to regulatory approval. This followed an earlier N175.9 billion fundraising exercise in 2024, reflecting a phased and proactive recapitalisation strategy.
United Bank for Africa, one of Nigeria’s largest banks by assets and regional presence, met the requirement in 2025. The group completed a N178.3 billion rights issue in September, supplemented by a N239 billion capital injection. The transactions pushed its capital base comfortably above N500 billion and supported its ongoing expansion across Africa and other international markets.
With these developments, nine of the 11 banks listed on the Nigerian Exchange have now satisfied the CBN’s recapitalisation criteria. This group includes Zenith Bank, Access Holdings, Guaranty Trust Holding Company, Stanbic IBTC, Wema Bank and Jaiz Bank. Market analysts view the broad compliance as an indication of balance-sheet strength and sustained investor interest in Nigerian banking stocks.
Despite the generally positive outlook, the pressure is intensifying on the remaining lenders yet to meet the target. Sterling Bank and FCMB Group now face increased scrutiny as the deadline approaches. Analysts warn that failure to comply could lead to regulatory constraints, including limits on asset growth, dividend payments and expansion plans.
Industry observers note that the recapitalisation drive is expected to deliver longer-term benefits for the financial system. Stronger capital buffers are seen as improving banks’ ability to absorb shocks and increasing their capacity to finance large corporate transactions and infrastructure projects critical to Nigeria’s economic development.
For Sterling Bank and FCMB Group, the final months of the programme are likely to be decisive. Market participants expect that options such as fresh equity issuance, strategic investments or potential consolidation may be explored as last-minute measures. With less than three months remaining, the closing phase of the recapitalisation exercise is set to test the strategic flexibility and execution capability of these institutions.
