Sterling Bank, Ecobank, 22 Other Lenders Hit CBN Recapitalization Targets Before 2026 Deadline

The Nigerian banking sector is set for a revitalisation, as a number of banks, including Sterling Bank and other prominent financial institutions, have successfully met the Central Bank of Nigeria’s (CBN) updated capitalisation requirements.

This achievement is a pivotal move towards enhancing the resilience of the banking sector, which is crucial for driving the nation’s economic growth and ensuring financial stability. The recapitalisation policy, which commenced in 2024, requires commercial banks with international authorisation to raise a minimum of ₦500 billion, national banks to meet ₦200 billion, and regional banks to increase their capital to ₦50 billion. Additionally, non-interest banks were assigned distinct targets, with national non-interest banks required to raise ₦20 billion and regional ones ₦10 billion. This exercise, with a compliance deadline set for March 31, 2026, has sparked a wave of equity raises, merger discussions, and balance-sheet restructuring across the sector. Echoing the 2004 recapitalisation under former CBN Governor Charles Soludo, which saw a drastic reduction in the number of banks from 89 to just 25, this latest effort is expected to significantly bolster the sector’s capacity, paving the way for stronger, more competitive institutions. As of the time of publication, 23 banks are noted to have successfully met the new capital requirements. Access Bank led the way, raising ₦351 billion through a rights issue, which allowed the bank to exceed the CBN’s minimum requirement of ₦500 billion. The rights issue, involving 17.77 billion shares at ₦19.75 each, has strengthened Access Bank’s capital base to ₦602.8 billion, exceeding the regulatory threshold by ₦102.8 billion. Zenith Bank raised over ₦350 billion through a combination of rights issues and public offers, raising its capital to ₦614 billion. Meanwhile, First HoldCo recently confirmed that First Bank reached its ₦500 billion target, having deployed a series of strategic initiatives, including a rights issue, private placement, and the sale of its merchant banking subsidiary. Several national banks have also completed their recapitalisation, with Sterling Bank’s effort following a series of targeted capital raise efforts by its parent company, Sterling HoldCo, the latest of which was a public offer to raise over ₦88 billion. Both Sterling and First Bank’s confirmation comes as their parent companies finalise regulatory approvals for their recent public offers. On the other hand, Wema Bank raised ₦150 billion through a rights issue, while Citibank and Standard Chartered Nigeria met their requirements with support from their international parent companies. Among the non-interest banks (NIBs), The Alternative Bank (AltBank), Jaiz Bank, TAJBank, and Lotus Bank have also met the new capitalisation thresholds, further reinforcing the sector’s commitment to inclusivity and diverse banking options. AltBank, as far back as May 2025, had secured the necessary capital injection, pushing its capital base comfortably above the CBN’s required threshold for NIBs with national authorisation. The bank’s efforts have positioned it as a strong contender in the non-interest banking space, ready to compete and drive growth. With 23 banks now meeting the CBN’s capitalisation requirements, the Nigerian banking sector is poised for greater stability and growth. These banks are now better positioned to support Nigeria’s economic agenda, driving investments and ensuring a more resilient financial system. The recapitalisation effort is not only a regulatory victory but also an essential step in ensuring that the Nigerian banking sector remains competitive on the global stage. As the 2026 deadline approaches, further capital raises and new investments are expected to unfold. CBN Governor, Olayemi Cardoso, stated earlier in the year that the banking recapitalisation is on track, assuring system resilience while others work towards the March 2026 deadline. The governor assured Nigerians that non-compliant banks may have their authorisation licences downgraded or merged, without immediate risk to deposits. This exercise, much like the 2004 consolidation, will shape the future of banking in Nigeria, ensuring that the industry is well equipped to take on the demands of an increasingly complex and competitive market.