With just over 50 working days to the March 31 deadline, Nigerian banks are intensifying efforts to meet the Central Bank of Nigeria’s new minimum capital requirements, as the recapitalisation programme enters its final and most decisive phase.
CBN Governor Olayemi Cardoso recently disclosed that 16 banks had already met the revised thresholds, while 27 others were still in the process of raising funds. His comments were reinforced by the Deputy Governor for Economic Policy, Dr Muhammad Abdullahi, who said no fewer than 20 banks had now complied with the new requirements.
Nigeria currently has 44 deposit-taking banks across international, national and regional licence categories. Market sources said several lenders were reassessing their strategic options, including private equity placements and licence downgrades, to avoid regulatory
sanctions. At least seven banks are reportedly considering a shift from national to regional licences, citing operational concentration and the growing reach of digital banking.
A senior industry source said the apex bank was evaluating “conclusive plans” for resolving at least three banks under regulatory management. One lender with strong roots in the South-West and significant exposure to the Lagos market may be considered for a downgrade from national to regional status.
Another bank holding an international licence is said to be weighing a temporary scale-down to a national licence ahead of the deadline, while continuing capital-raising efforts to later reclaim its international authorisation. The CBN is understood to have approved flexible, two-way movement across licence categories, subject to verified evidence of compliance with minimum capital thresholds.
Investment banking sources said discussions with high-net-worth individuals and institutional investors were ongoing, with special placements expected to peak within the next seven weeks. However, the strict capital verification process and the narrow definition of qualifying capital have limited fundraising options for some banks.
Despite the pressure, analysts remain confident that the exercise will conclude without major disruptions. “Over 20 banks have already met the requirements, and progress has been encouraging,” a team lead at a leading think tank said, adding that the process compares favourably with the 2004–2005 consolidation era that forced widespread mergers and liquidations.
Under the recapitalisation framework introduced in March 2024, the CBN raised minimum capital to ₦500 billion for international banks, ₦200 billion for national banks and ₦50 billion for regional banks, with the 24-month compliance window closing on March 31.
