Funded and functional
Eight Nigerian banks meet CBN recapitalisation targets early, boosting sector stability. Improved forex liquidity allows GTCO and Ecobank to resume naira card payments for overseas fees.
Eight Nigerian banks — Access, Wema, Zenith, Greenwich Merchant Bank, Jaiz, Lotus, Providus, and Stanbic IBTC — have met the Central Bank of Nigeria’s new recapitalisation requirements ahead of the March 2026 deadline, signalling strengthened resilience in the banking sector. Meanwhile, improved foreign exchange liquidity has enabled banks such as GTCO and Ecobank to resume naira‑denominated card payments for international school fees and medical bills, previously suspended. Customers can now settle these expenses directly from Naira accounts via online platforms, with more banks expected to follow as dollar supplies stabilise.
Nigeria's banking sector is undergoing a crucial and timely recapitalisation exercise. The last major overhaul was over a decade ago, which introduced a tiered licensing structure for international, national, and regional banks. Since then, the significant depreciation of the naira has severely eroded the dollar value of banks' capital, making it difficult for them to handle large-scale transactions. This new round of recapitalisation is, therefore, long overdue.
This modern era of bank recapitalisation began in 2005 when the Central Bank of Nigeria (CBN), led by Charles Soludo, increased the minimum capital requirement from ₦2 billion to ₦25 billion. That move triggered a wave of mergers that reduced the number of licensed banks from 89 to 25, leading to the emergence of the major banks we know today and establishing a more robust banking system.
Today, the new capital requirement for national banks is ₦200 billion. While this figure seems substantial in naira, it translates to approximately $129 million—significantly less than the $191 million equivalent in 2006 due to currency devaluation. This stark comparison highlights the critical need for Nigerian banks to be adequately capitalised if they hope to remain competitive internationally.
The two-year window from 2024 to 2026 is ample time for banks to meet the new capital requirements. While some have already declared their capital levels are in line with their licence categories, others are expected to reassess their positions. Some banks may choose to scale down their licence tiers to meet the new thresholds, allowing them to focus on areas that generate strong returns and sustainable profits. This exercise is also a potential catalyst for much-needed mergers and acquisitions (M&A), a type of activity that is still relatively rare among Nigerian businesses. Overall, we expect this recapitalisation initiative to have a positive impact on the entire industry.