Nigeria’s banking industry has successfully mobilised N4.6 trillion in fresh capital under the Central Bank of Nigeria’s (CBN) recapitalisation programme, with 33 banks meeting or exceeding the new minimum capital thresholds ahead of the March 2026 deadline.
CBN Governor Olayemi Cardoso described the achievement as “commendable,” noting that the strengthened capital base will enhance the sector’s capacity to mobilise long-term funds, support productive investments, and contribute meaningfully to Nigeria’s goal of becoming a $1 trillion economy.
The capital was raised through a combination of rights issues, public offerings, private placements, and strategic investments. Several international-licensed banks surpassed the N500 billion requirement, while national and regional banks comfortably met their respective N200 billion and N50 billion thresholds.
Notable performances included:
– Access Holdings, which raised N351.01 billion through a fully digital rights issue, pushing its share capital to N600 billion.
– Zenith Bank, which secured N289.44 billion via a rights issue and public offering, bringing its total capital base to N614.65 billion.
– GTCO, which increased GTBank’s paid-up capital to N504 billion and became the first West African bank to dual-list on the NGX and London Stock Exchange during the exercise.
– Fidelity Bank, which recorded massive oversubscription rates of 237% on its public offer and 137.73% on its rights issue, raising N272.95 billion.
The merger between Providus Bank and Unity Bank, supported by a N700 billion CBN financial accommodation, is also progressing and will create a new national bank once finalised. In the non-interest banking segment, Jaiz Bank led with a capital base of N47.9 billion, more than double its requirement.
With the capital-raising phase largely completed, attention has now shifted to how the funds will be deployed. Analysts warn that returns to shareholders may be modest in the short term due to higher equity bases and the gestation period required for new lending.
Head of Equity Research at Quest Merchant Bank, Tunde Abidoye, noted that return on equity (ROE) typically declines in the first year after recapitalisation. He expects most banks’ ROE to normalise by 2027, projecting a rebound to 20–25% as the new capital begins to generate income.
Abidoye identified high-growth sectors such as ICT, finance, oil and gas, and real estate as likely targets for lending, while stressing the need for strong risk management to navigate market, credit, climate, and geopolitical risks.
Ayokunle Olubunmi of Agusto & Co advised banks to focus initially on sectors where they have deep expertise before gradually expanding, noting that returns will ultimately depend on the risk profile of the assets they choose.
Shareholders have tempered near-term expectations. National Chairman of the New Dimension Shareholders Association, Patrick Ajudua, said returns are not immediate and will depend on effective deployment and the prevailing economic environment. He urged banks to channel funds into relatively low-risk sectors such as manufacturing, consumer goods, and commerce.
Boniface Okezie, Chairman of the Progressive Shareholders Association, warned that inflation could erode value if funds are not deployed strategically. He called for greater lending to the real sector, agriculture, and the blue economy to boost production, exports, and job creation.
Moses Igbude, National Coordinator of the Independent Shareholders Association, emphasised the need for efficiency, accountability, and stronger regulatory oversight to prevent abuse by chronic defaulters.
The Centre for the Promotion of Private Enterprise (CPPE) welcomed the orderly and confidence-enhancing nature of the recapitalisation but cautioned that its ultimate success will depend on how effectively the stronger banking system supports the real economy. CPPE Director Muda Yusuf noted that private sector credit to GDP remains low, SME financing is inadequate, and consumer credit is constrained, highlighting a disconnect between banking strength and economic productivity.
As banks begin deploying the N4.6 trillion war chest, the coming months will test their ability to balance risk, returns, and developmental impact in an increasingly competitive and uncertain environment. The quality of lending decisions and the sectors they prioritise will ultimately determine the long-term benefits of the recapitalisation exercise for both shareholders and the broader Nigerian economy.
