•Analysts see lenders surpassing N500bn mark
By Chinwendu Obienyi
Six top Nigerian banks are on course to exceed the Central Bank of Nigeria (CBN)’s minimum capital requirement of N500 billion, Daily Sun’s findings have shown.
The big lenders; Zenith Bank, Access Holdings, United Bank for Africa (UBA), Guaranty Trust Holding Company (GTCO), FBN Holdings, Fidelity Bank and FCMB have combined capital raise efforts now nearing N2.4 trillion, nine months to the deadline.
These financial behemoths have either successfully concluded or are in advanced stages of capital raise programmes through a mix of rights issues, public offers and private placements.
The banks in separate statements filed with the Nigerian Exchange Limited (NGX) recently, while addressing investors’ concern on the temporary suspension of dividend payment, bonuses and investment in foreign subsidiaries by the apex bank, expressed readiness and confidence on the completion of the capital raise by the second half (H2) of the year.
The CBN, in March 2024, announced a sweeping recapitalisation policy requiring commercial banks with international license to maintain a minimum capital base of N500 billion. The move, according to the apex bank, aims to strengthen the financial system’s resilience, support President Bola Tinubu’s ambitious $1 trillion economy vision, and enhance banks’ capacity to fund critical sectors of the economy.
Findings show that Zenith Bank, widely regarded as the industry’s profitability leader, was the first bank to successfully raise and surpass the regulatory capital requirement of N500 billion. Following closely was Access Bank which also successfully raised N500 billion and surpassed the requirement.
UBA and GTCO have each disclosed plans to raise between N500 billion and N600 billion via rights and bond issues.
Checks reveal that both banks had raised about N355.2 billion and N209.41 billion in the first tranche.
FBN Holdings has also raised about N187.6 billion and is expected to reach the N500 billion requirement by the end of July while Fidelity Bank revealed yesterday that it raised N273 billion through a recent public offer and rights issue which were oversubscribed by 237.92 per cent and 137.73 per cent and intends to raise an additional sum of N200 billion through a private settlement placement by the end of the year to reach the apex bank’s requirement.
Similarly, FCMB Group has revealed that it raised N147.5 billion and will reach about N267 billion by July. Collating the figures, the capital raise stands at N2.4 trillion.
Market analysts say this positions them well ahead of the 2026 compliance deadline and signals strong investor confidence in the country’s banking institutions despite macroeconomic headwinds.
The Managing Director, Apt Securities, Mallam Kurfi Garba, said, “These early successes reflect a healthy appetite for banking stocks, improved investor sentiment, and confidence in the long-term profitability of these institutions. It is also a signal that the bigger players intend to retain their dominance under the new capital regime.
However, I believe the recapitalisation will lead to consolidation among smaller banks and a potential wave of mergers and acquisitions as lenders without sufficient shareholder base or profitability may struggle to meet the capital target independently”.
While stakeholders have welcomed the policy, some have expressed concerns over the short timeframe and its implications for financial inclusion. However, CBN Governor Olayemi Cardoso recently allayed fears, noting that the recapitalisation would not lead to mass job losses or branch closures but would rather position the sector for long-term growth and global competitiveness.
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