Monday, February 16 2026 - Nigeria’s banking sector is entering the final stretch of its recapitalisation drive, with lenders stepping up capital actions ahead of the Central Bank of Nigeria’s March 31, 2026, deadline.
Analysts at Proshare say industry activity was subdued in the week ended February 12, as attention shifted from fundraising announcements to regulatory validation and capital confirmation processes.
FCMB Group is undergoing capital verification by the Central Bank of Nigeria (CBN) to confirm whether it has met the new minimum capital threshold of N500 billion for international banks, according to Proshare analysts.
The group previously secured its national banking licence in
2024 following an oversubscribed public offer and completed another ₦160
billion public offer last year as part of its push toward retaining its
international banking licence.
The current verification process is therefore seen as the
final regulatory confirmation of compliance. A successful outcome would likely
lead to a formal announcement of its
continued international operations.
The update places FCMB at the final regulatory checkpoint as
the sector prepares for tighter capital standards.
Elsewhere, Sterling Bank has yet to disclose its
recapitalisation plan, though analysts expect a rights issue or private
placement to close a gap between its current capital of about ₦167 billion and
the ₦200 billion requirement.
GTCO Plc completed a ₦10 billion private placement earlier,
issuing 125 million shares at ₦80 each to a single investor. Proshare analysts
described the move as a proactive step to strengthen capital buffers and
support medium-term growth rather than a regulatory necessity. The transaction
was seen as a sign of sustained investor confidence and early positioning ahead
of tighter industry conditions.
First HoldCo Plc’s unaudited 2025 results highlighted another dimension of the recapitalisation push. A large impairment charge weighed on earnings, underscoring how asset-quality shocks can quickly erode capital buffers. Analysts said the results reinforce the need for early capital planning and stronger governance as regulatory expectations rise.
Market speculation during the week pointed to possible consolidation, including talk of a strategic merger between two tier-1 banks and bank-led investments in Nigeria’s refinery and energy infrastructure. The developments remain unconfirmed but reflect growing interest in diversification and scale.
Across smaller and mid-tier lenders, recapitalisation is
increasingly tied to foreign investment and consolidation:
Union Bank has reportedly attracted foreign interest,
particularly from the UAE, while awaiting resolution of a legal dispute
involving a former core investor.
Keystone Bank is drawing interest from both local and
foreign investors, with the possibility of a joint acquisition.
Polaris Bank is expected to pursue investor-led
recapitalisation or merge with another tier-2 lender, a move analysts see as
supportive of industry consolidation.
Proshare’s Economic and Market Intelligence Unit says the CBN appears open to mergers and acquisitions as a route to build larger and more resilient banks. Domestic investors continue to show interest in distressed lenders, but analysts say foreign partnerships may be needed to meet unencumbered capital requirements.
The CBN’s latest fintech report adds another layer to the
recapitalisation story, highlighting the rapid growth of digital finance and
the need for regulatory alignment to sustain innovation. For banks, the
findings reinforce the need to balance competition from fintechs with
partnership opportunities that can expand reach and efficiency.
With less than two months to the deadline, most tier-1 and
tier-2 banks are seen as having met revised capital buffers. Tier-3 lenders,
however, remain under pressure to secure funding or combine to remain
competitive in the post-recapitalisation landscape.
For now, the market is watching regulatory confirmations,
including FCMB’s, as the sector approaches one of its most significant capital
resets in years.
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