Global rating agency Fitch Ratings has affirmed that Nigerian banks are on course to meet the March 2026 recapitalization deadline set by the Central Bank of Nigeria (CBN).

In a report released on Wednesday, Fitch highlighted the significant progress made by banks in raising capital to comply with the CBN’s new minimum requirements.

CBN’s Recapitalization Mandate

In March 2024, the CBN set new capital requirements for Nigerian banks, which must be met by March 2026. The guidelines stipulate that:

• International commercial banks must have N500 billion in capital.
• National commercial banks require N200 billion.
• Regional commercial and merchant banks must maintain N50 billion.

To comply, banks can choose between:

1. Equity injections
2. Mergers and acquisitions
3. Licence adjustments

Progress Among Top Banks

According to Fitch, nearly all Fitch-rated banks have either raised capital or officially launched the process.

• Access Holdings and Zenith Bank are the first to fully meet the N500 billion requirement for international licences.
• First HoldCo, United Bank for Africa (UBA), and Guaranty Trust Holding Company (GTCO) are taking a phased approach, raising capital in stages to meet the threshold.
• Fidelity Bank and FCMB Group, as second-tier banks, have initiated capital raising but still need additional funding to maintain their international licences. Given their smaller balance sheets, these banks must raise proportionally more capital than their larger counterparts.

Smaller Banks and Potential Licence Adjustments

• Ecobank Nigeria Limited (ENG) and Jaiz Bank require only minor capital injections and have already achieved compliance.
• Stanbic IBTC Holdings has launched a rights issue to maintain its national licence.
• Union Bank of Nigeria (UBN) remains in breach of its 10% Capital Adequacy Ratio (CAR) but has plans to restore compliance.
• Wema Bank has shareholder approval to raise enough capital to retain its national licence and plans to launch the process in April.
• Coronation Merchant Bank has received board approval, but some third-tier banks have yet to secure the necessary clearances.

Strong Investor Confidence Reducing Need for Mergers

Fitch noted that investor interest has been strong, making capital raising relatively successful across first- and second-tier banks. This reduces the likelihood of forced consolidations in the sector.

However, for third-tier banks, mergers, acquisitions, or licence downgrades remain the most likely path to compliance.

As the March 2026 deadline approaches, banks are expected to accelerate their capital mobilization efforts to meet regulatory requirements and sustain growth in Nigeria’s banking sector.