As the March 31, 2026 deadline for the banking sector recapitalisation programme approaches; requiring commercial, merchant, and non-interest banks to increase their minimum paid-in capital, Sterling Bank and FCMB Group are the only NGX listed banks yet to achieve full compliance.
Recent developments however, highlight steady progress across the sector as most other banks meet their respective requirements.
Last week, key players including First HoldCo Plc, UBA, and Fidelity Bank announced capital raises that enable them to meet the Central Bank of Nigeria’s (CBN) N500bn minimum requirement.
First HoldCo Plc met the requirement through a combination of a Rights Issue, a Private Placement, and proceeds from the divestment of its merchant banking subsidiary.
In the same vein, Fidelity Bank announced the successful completion of a N259bn Private Placement on December 31, 2025, which increased its eligible capital from N305.5bn to N564.5bn, subject to regulatory approval.
This follows an earlier N175.9bn capital raise in 2024, indicating the bank’s proactive approach to meeting the new capital regime.
Also, UBA crossed the N500bn threshold after completing a N178.30bn Rights Issue in September 2025, alongside a N239.00bn capital injection, which collectively lifted its capital base comfortably above the regulatory minimum.
Overall, 9 of the 11 NGX listed banks including Zenith bank, Wema Bank, UBA, Stanbic IBTC, Jaiz Bank, Guaranty Trust Holding Company (GTCO), First HoldCo, Fidelity bank and Access Holdings, have now met the recapitalisation requirement, while the remaining institutions continue efforts toward compliance.
This broad progress indicates the underlying strength of the Nigerian banking system, particularly in terms of fundamental soundness, liquidity, and balance-sheet resilience.
“Looking ahead, we expect the recapitalisation exercise—through stronger capital buffers to enhance banks’ risk-absorption capacity and better position them to support credit expansion, especially to large corporates and infrastructure projects critical to economic growth,” analysts at Meristem Securities said.
“For institutions yet to meet this requirements (Sterling Bank, FCMB), they are likely to face heightened regulatory pressure and may experience short-term constraints on asset growth and dividend payouts.”
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