Fourteen Nigerian banks yet to meet CBN capital requirements ahead of deadline

Banking system shows resilience despite shortfall for some institutions

No fewer than 14 Nigerian commercial banks are yet to meet the stringent recapitalization requirements mandated by the Central Bank of Nigeria (CBN), even as the crucial March 31, 2026 deadline steadily approaches.

This financial race against time has intensified following a recent announcement by CBN Governor, Olayemi Cardoso, indicating that while a majority of the sector has stabilized, a significant number of institutions still have substantial ground to cover.

The CBN Governor’s declaration came after the bank’s 303rd Monetary Policy Committee (MPC) meeting in Abuja. During the briefing, Cardoso disclosed that 16 Nigerian banks have successfully met their respective recapitalization requirements well ahead of the March 2026 deadline.

This achievement, according to the Governor, signifies the underlying financial soundness and resilience of the country’s banking system, providing a crucial layer of stability in the face of ongoing economic reforms. The MPC noted with satisfaction that most financial soundness indicators across the banking system continue to remain within the regulatory thresholds set by the apex bank.

Two more banks achieve compliance in two months

The number of compliant banks has shown positive momentum. The latest update reveals that two additional Nigerian banks have been added to the list of institutions that have fully complied with the apex bank’s recapitalization requirements in the past two months. This marks an encouraging, albeit slow, acceleration in the compliance process across the sector.

At the preceding 302nd MPC meeting, Governor Cardoso had announced that only 14 banks had met the requirement, underscoring the efforts made by the banking industry to secure the necessary capital injection or execute mergers to meet the new regulatory benchmarks. However, the fact that 14 banks still remain non-compliant suggests that the last few months before the deadline will be characterized by intense capital-raising activities, mergers, acquisitions, or the unfortunate consolidation of weaker financial entities.

Recapitalization targets and market structure

The CBN’s recapitalization directive was initially issued in March with the primary goal of strengthening the financial backbone of the Nigerian banking sector and insulating it from global economic shocks. The directive specified varying capital base increases depending on the bank’s operating authorization:

• Commercial banks with international authorization were directed to increase their capital base to N500 billion.

• Those with a national licence must raise their capital base to N200 billion.

Official CBN records as of 2024 indicate that Nigeria’s financial ecosystem comprises 13 commercial banks, five merchant banks, and seven financial holdings companies. Based on the latest figures from the MPC, the 14 banks yet to meet the requirement are drawn from this structure, presenting a massive challenge for the institutions as the deadline approaches.

A number of prominent Nigerian banks have reportedly already achieved compliance, including major players like Access Bank, Zenith Bank, GTBank, Wema Bank, Jaiz Bank, and Stanbic IBTC. These institutions, often classified as Tier-1 or holding international authorization, have demonstrated their capacity to quickly adjust their financial structures to meet the heightened demands, largely through rights issues and public offerings.

MPC urges successful conclusion of the program

The MPC acknowledged the substantial progress made in the ongoing recapitalization program but collectively urged the CBN to ensure a “successful implementation and conclusion of the programme.” The recapitalization exercise is viewed as a vital step in fortifying the sector against economic volatility, enhancing risk management practices, and positioning Nigerian banks to finance larger projects necessary for national development.

The clock is ticking for the non-compliant 14 banks. Their options include raising fresh equity through the stock market, attracting foreign direct investment, or consolidating their operations through mergers and acquisitions with stronger counterparts to combine capital bases. Failure to meet the March 2026 deadline could lead to the revocation of their operating licenses or a downgrade of their authorization, thus underscoring the urgency and high stakes involved in the final phase of this significant regulatory exercise.