Under the CBN’s new minimum capital requirements, commercial banks with international authorisation were required to hold at least N500 billion in paid-up capital, a ninefold increase from the previous N50 billion. The “Big Seven” banks not only met these targets but, in several cases, exceeded them.
Access Holdings Plc became the first to execute a fully digital Rights Issue via the Nigerian Exchange (NGX) E-offer platform, raising N351.01 billion and pushing its share capital to N600 billion, N100 billion above the regulatory floor. Zenith Bank Plc followed closely, raising N289.44 billion through a Rights Issue and Public Offering, bringing its total capital base to N614.65 billion.
Guaranty Trust Holding Company (GTCO) increased GTBank’s paid-up capital to N504 billion, including $105 million from international investors following a dual listing on the NGX and London Stock Exchange (LSE). Fidelity Bank, United Bank for Africa (UBA), First City Monument Bank (FCMB), and First Bank also achieved their targets, with First Bank aiming for N748 billion through private placements.
National and Regional Banks Strengthen Capital
National banks, required to reach N200 billion, also saw strategic recapitalisation. Stanbic IBTC Holdings raised N181.4 billion in a Rights Issue, while foreign-owned entities such as Ecobank Nigeria, Standard Chartered, and Citibank largely relied on parent-company support.
The merger of Providus and Unity Bank received N700 billion in CBN backing to ensure the new entity’s stability. Wema Bank also surpassed the N200 billion threshold through a N150 billion rights issue and special placement. Regional and merchant banks, including Nova Bank, Parallex, Titan Bank, and Rand Merchant Bank, similarly met new capital requirements.
Non-Interest Banking Segment Expands
The non-interest banking sector, led by Jaiz Bank, exceeded the N20 billion national requirement with a capital base of N47.9 billion, supported by a N10.04 billion private placement. Lotus Bank, Taj Bank, The Alternative Bank, and Summit Bank have all met their respective targets, signaling robust growth in the sector.
Focus Shifts to Fund Deployment
With capital mobilisation complete, attention has shifted to deployment efficiency. Experts warn that returns on equity (ROE) may be modest in 2026 due to higher equity levels, but are expected to normalise by 2027. High-growth sectors such as ICT, finance, oil and gas, real estate, agriculture, and manufacturing have been identified as strategic investment targets, with a strong emphasis on risk management.
Shareholders are tempering expectations, noting that returns will depend on regulatory approvals, macroeconomic conditions, and the gestation period for investments. Patrick Ajudua of the New Dimension Shareholders Association advised banks to prioritise low-risk sectors, while Boniface Okezie of the Progressive Shareholders Association called for cautious deployment into the real sector to safeguard funds against inflation and market volatility.
Bridging Banking Strength to Economic Growth
The Centre for the Promotion of Private Enterprise (CPPE) highlighted the need for banks to channel recapitalised funds into productive sectors. CEO Dr. Muda Yusuf warned that despite stronger balance sheets, the linkage between banking system strength and real economic growth remains weak. He stressed the importance of long-term credit to SMEs, manufacturing, agriculture, and infrastructure to drive industrialisation and employment.
Yusuf also called for policy reforms to address government borrowing, high interest rates, and stringent collateral requirements, urging banks to prioritise economic impact over capital adequacy alone.
As banks begin to deploy the N4.6 trillion war chest, analysts say success will hinge on balancing risk, returns, and developmental impact amid heightened competition and economic uncertainty.
