THERE are indications that some banks will merge as some deposit money banks (DMBs) in last-ditch efforts to meet the March 31, 2026, deadline for the recapitalisation exercise of the Central Bank of Nigeria (CBN).
Lenders are already in an intense push to comply with the apex bank’s new minimum capital requirements before the 31 March 2026 recapitalisation deadline.
In March 2024, the CBN announced new minimum capital requirements of N500 billion for international banks, N200 billion for national banks and N50 billion for regional banks, allowing compliance only through fresh equity injections, mergers and license re-classification.
A rating firm, DataPro, in its 2026 Banking Sector Prospects in Nigeria, has confirmed the development, highlighting post-merger challenges and technology-related threats when banks opt for merging.
Analysing the banking sector prospects for 2026, DataPro’s in-house expert and analyst on Enterprise Risk Management, Idris Shittu, expressed optimism that major banks will meet the minimum capital threshold, but did not rule out bank-mergers and their risk exposure.
“This regulatory push has spurred an active Monitoring and Evaluation environment, but it brings with it considerable risks. Post-merger integration challenges, including IT system harmonisation, cultural alignment, and the migration of non-Performing Loans, could strain newly merged entities, especially among smaller banks. The looming deadline has also sparked ‘War Room’ discussions focused on deal execution and risk mitigation,” he said.
By the end of 2025, most tier-1 institutions had already met the new capital threshold, and more have announced that they have met the minimum capital requirement in this New Year, leaving smaller banks under mounting regulatory and market pressure to strengthen their balance sheets.
Meanwhile, Tier-2 banks are under increasing pressure to comply, with three significant mergers expected by early 2026 as institutions scramble to meet the 31 March recapitalisation deadline.
Shittu maintained that the sector will be facing diverse threats in the New Year, which demand agility and operational resilience from banks across the country. These threats include regulatory tightening, as a high Cash Reserve Ratio continues to restrict liquidity.
He added that capital pressure is intensifying as the recapitalisation deadline drives consolidation. He also highlighted heightened risks around merger execution and integration, and technological disruption from rapid fintech innovation, adding that “It would demand urgent modernisation and digital transformation from traditional banks to stay competitive.”
He anticipates that banks would continue to prioritise fee-based income streams over traditional lending activities to deal with the 45 per cent Cash Reserve Ratio (CRR) for commercial banks. This CRR effectively sterilises nearly half of the naira deposits and severely limits liquidity.
Commenting on the disruption brought on by fintechs in the financial sector, Shittu said, “Technology continues to reshape Nigeria’s banking sector, with fintech innovators like Moniepoint and Opay aggressively capturing market share, particularly among SMEs and retail customers. In response, 2026 is poised to become the year Nigerian banks evolve beyond traditional banking to compete as lifestyle ‘super-apps’.
“These super-apps aim to integrate services such as flight bookings, food delivery, and other daily conveniences directly into banking platforms to enhance customer retention and engagement. However, traditional banks face an agility challenge due to slow IT procurement cycles and legacy core systems, risking a continued exodus of younger users to nimbler fintech rivals. To keep pace, banks are expected to innovate rapidly, either through strategic fintech acquisitions or by spinning off autonomous digital subsidiaries capable of operating with fintech speed and flexibility,” he stated.
On a possible decline in the number of banks, Shittu said, “By the end of 2026, the Nigerian banking industry is expected to consolidate significantly, shrinking in number. While this consolidation promises a more resilient banking system capable of underwriting larger transactions and supporting Nigeria’s ambition toward a $1trillion economy, integration risks loom large.
He noted that “Past consolidation efforts, such as those in 2005, highlight the potential pitfalls of IT system failures and cultural clashes. Particularly challenging is the merger of conservative Tier-1 banks with aggressive Tier-2 acquirers, which could cause decision-making gridlock and operational disruptions.”
The expert warned that success in the consolidation phase will depend heavily on effective due diligence around asset quality and cultural fit, as well as robust post-merger integration planning.
The Executive Director of the Alternative Bank, Monsurat Ademola-Adeniyi, also noted that the AI would have a huge influence on the consolidation exercise and play its role beyond credit review and fraud detection.
“The use of AI in the banking industry would also come into play. It’s currently being used for fraud detection and credit review. It’s also being used to improve customer experience. AI is something that is going to be on the front burner and continue to improve the banking experience as time goes on,” she stated.
Here are banks that have met CBN minimum capital requirements
As of January 8, 20 lenders have completed the new capital raise with Access Bank, the country’s largest lender by assets, emerging as the first to scale through the hurdle.
The recapitalisation echoes a 2004 exercise under then-CBN governor Charles Soludo, which forced banks to raise capital to N25 billion from N2 billion. That consolidation cut the number of lenders from 89 to 25 and paved the way for stronger players to emerge.
International Banks:
Access Bank
Access Bank raised a total of N351 billion through a rights issue, making the Lagos-headquartered lender the first Nigerian bank to meet the new capital base of N500 billion. The rights issue involved 17.77 billion ordinary shares at N19.75 each. With a combined share premium and paid-up capital of N602.8 billion, the bank has exceeded the CBN requirement by N102.8 billion.
Zenith Bank
Zenith Bank has also concluded its recapitalisation exercise, raising over N350 billion through a combination of rights issue and public offer. The bank’s share capital now stands at N614 billion, surpassing the minimum capital requirement for international banks.
First HoldCo (First Bank)
First HoldCo Plc has also met the Central Bank of Nigeria’s (CBN) minimum capital requirement of N500 billion. The milestone, according to the lender, was achieved following the completion of a series of strategic capital initiatives, including a Rights Issue, a Private Placement, and the injection of proceeds from the divestment of the Group’s merchant banking subsidiary.
GTCO
Guaranty Trust Holding Company (GTCO) stands among lenders that have completed their capital requirements. Nigeria’s most valuable lender raised its capital through a multi-tranche equity programme, raising over N209 billion in its first phase (late 2024/early 2025), with plans for further fundraising, including a recent private placement for N10 billion, to strengthen its banking subsidiary (GTBank) and fund group expansion. The capital injection boosts GTBank’s paid-up capital to over N504 billion, fulfilling new regulatory mandates.
UBA
United Bank for Africa raised N178.3 billion through a rights issue, pushing its capital base above the N500 billion minimum set by the Central Bank of Nigeria (CBN) for lenders with an international license.
The capital raise, which closed in September 2025, follows a N239 billion injection completed in November 2024 that had lifted the bank’s capital to N355.2 billion. Combined, the transactions position UBA above the CBN’s recapitalisation threshold ahead of the March 2026 deadline, pending formal regulatory confirmation.
Fidelity Bank
Fidelity Bank has equally joined the league of lenders that have scaled through the new capital requirements ahead of the deadline. The bank’s eligible capital now stands at N564.5 billion from N305.5 billion – a rise that’s done through a private placement carried out under a mandate granted by shareholders at an extraordinary general meeting on February 6, 2025, authorising the bank to issue up to 20 billion ordinary shares.
The fundraising caps an aggressive capital-raising drive by Fidelity over the past two years. In 2024, the lender raised N175.85 billion through a public offer and rights issue, which brought its eligible capital to N305.5 billion. That left a shortfall of about N194.5 billion relative to the new minimum capital threshold.
National Banks:
Wema Bank
Wema Bank also announced the completion of its recapitalisation by raising N150 billion through a rights issue of 14.29 billion shares at N10.45 per share, concluded on May 21, 2025. The bank is awaiting final verification from the CBN, with a N50 billion portion of the offer currently under review by the Securities and Exchange Commission (SEC), according to posts on social media.
Citibank Nigeria
Citibank Nigeria Limited (Citi) has also announced that it had successfully met the Central Bank of Nigeria’s (CBN) new minimum capital requirement of N200 billion for national commercial banks. The lender did not disclose how the capital was raised.
Ecobank Nigeria
Ecobank is also among the lenders that have crossed the recapitalisation hurdle, raising the minimum paid-up capital for a national bank.
Globus Bank
Globus Bank completed its capital requirement by raising N52.9 billion in 2024 to lift its capital to N98.6 billion, and followed in 2025 with a further N102 billion through rights issues and private placements. The raise, subscribed entirely by existing shareholders, took its capital above N200 billion.
Stanbic IBTC
Stanbic IBTC has equally scaled through the capital threshold set for national banks, as the lender raised N200 billion through a rights issue and a direct capital injection by its parent company.
PremiumTrust Bank
PremiumTrust Bank has met the N200 billion minimum capital requirement for National Commercial Banks ahead of the March 2026 deadline set by the Central Bank of Nigeria (CBN), becoming only the third national bank to do so.
The upstart lender, just three years old, exceeded the new capital requirement after wrapping up a rights issue and private placement with CBN sign-off in August, placing the bank among the early complaints to the new rule.
Providus Bank
Providus Bank also completed its recapitalisation, an exercise done through a sealed strategic merger with Unity Bank. This makes Providus–Unity the first approved merger under the CBN’s recapitalisation programme announced earlier in 2024.
Other banks that have met the new capital requirement include merchant banks such as FSDH Merchant Bank, Greenwich Merchant Bank, Nova Bank, and Rand Merchant Bank.
Non-interest banks are not left behind, as Jaiz Bank, Lotus Bank, and TAJBank have beefed up their capital ahead of the CBN deadline.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.