Nigeria’s two-year banking sector reform drive is heading to a successful conclusion, with the Central Bank of Nigeria confirming that 32 banks have already met the new minimum capital requirements ahead of the March 31, 2026 deadline, in a transformation that has mobilised more than N4.6 trillion in fresh capital and is being compared to the landmark consolidation that reshaped the sector more than two decades ago.
CBN Governor Olayemi Cardoso confirmed at a monetary policy forum in Abuja that 32 banks had already met the revised capital requirements under the ongoing recapitalisation programme ahead of the March 31 deadline, positioning the financial sector to mobilise long-term investment and support the country’s transition towards the proposed $1 trillion economy.
Speaking at the end of the 304th Monetary Policy Committee meeting, Cardoso said total verified and approved capital raised across the sector stood at N4.05 trillion as of February 19, 2026. “Of this, N2.90 trillion, representing 71.6 per cent, was mobilised domestically, while $706.84 million, equivalent to N1.15 trillion or 28.3 per cent, came from foreign investors. This mix signals strong domestic and international confidence in the sector,” he said.
The final figure is even higher, with banks raising a combined N4.61 trillion in fresh capital according to the latest count, with foreign investors contributing approximately 27 per cent of the total.
The scale of capital mobilisation across the industry has been remarkable. Access Bank led the recapitalisation race, raising N351 billion through a rights issue to grow its capital base to N602.8 billion, exceeding the N500 billion minimum threshold for international commercial banks by N102.8 billion. Zenith Bank raised over N350 billion through a combination of rights issues and public offers, taking its capital to N614 billion, while First Bank reached its N500 billion target through a combination of a rights issue, private placement, and the sale of its merchant banking subsidiary.
The exercise has also triggered a wave of consolidation. One of the most notable developments is the merger between Providus Bank and Unity Bank, one of the first consolidation deals completed under the recapitalisation programme. Sterling Bank, Citibank Nigeria, and non-interest lenders including Jaiz Bank, Lotus Bank, and TAJBank have also strengthened their capital bases through strategic investments.
However, three institutions remain unresolved. The CBN is expected to clarify the status of three banks currently under regulatory intervention, Polaris Bank, Keystone Bank, and Union Bank of Nigeria. Cardoso reassured that these cases are being handled as special situations, with recapitalisation sequencing adapted to their legal and structural circumstances, and emphasised that depositor funds remain secure and operations continue under close regulatory oversight.
With social media speculation creating anxiety among ordinary bank customers, the CBN moved swiftly to calm public nerves. The apex bank said the March 31, 2026 deadline was strictly a regulatory requirement for financial institutions and posed no danger to customers or their deposits, dismissing reports suggesting that accounts could be frozen as entirely false. “The Nigerian banking sector is sound, stable, and operating normally. There is no crisis,” the CBN stated. It confirmed that all banking services, including ATMs, mobile apps, online platforms, and branch operations would remain unchanged throughout the period.
Financial analysts, including experts at Agusto and Co, described the recapitalisation exercise as having exceeded expectations. They noted the significant role played by domestic investors, who contributed the bulk of the capital raised, and said most outstanding banks had already raised the required capital and were only awaiting CBN verification.
The exercise echoes one of the most transformative episodes in Nigeria’s financial history. It mirrors the historic 2004 banking reform led by then-CBN Governor Charles Soludo, which raised minimum capital requirements from N2 billion to N25 billion and reduced the number of banks from 89 to 25, creating stronger, more resilient institutions and paving the way for Nigerian banks to expand across the continent. Analysts believe the 2026 exercise could have a similarly transformative long-term impact on Nigeria’s financial system.
