⏳ Clock Ticking: Shareholders Mount Pressure as Banks Race to Meet Recapitalisation Deadline
As Nigeria’s banking sector enters the final three months of its recapitalisation window, shareholders are turning up the heat on banks that are yet to meet the new minimum capital requirements (MCRs), warning that delays could severely hurt investors and destabilise confidence in the system.
What Is Happening?
Following the Central Bank of Nigeria’s recapitalisation directive, banks are required to shore up their capital base before the deadline expires. According to Central Bank of Nigeria, progress has been encouraging—but not complete.
• 16 banks have already achieved full compliance with the new capital thresholds.
• 27 banks have raised capital through public offers, rights issues, private placements, or mergers.
• Several banks are still behind schedule, sparking concern among minority shareholders.
CBN Governor Olayemi Cardoso described the exercise as the most significant banking-sector strengthening effort in over a decade, aimed at safeguarding financial stability and supporting Nigeria’s long-term economic ambitions.
Why Shareholders Are Worried
Leaders of shareholder associations say minority investors stand to lose the most if banks fail to meet the requirements.
Key concerns include:
• Licence revocation or forced liquidation for non-compliant banks
• Dilution or wipe-out of shareholder value
• Loss of confidence in affected bank stocks
Recent examples—such as failed mortgage banks—have reinforced fears that regulators may not hesitate to act decisively.
What Options Do Struggling Banks Have?
Shareholder groups agree that banks still have clear paths to survival, but time is running out. Suggested options include:
1. Capital Raising
• Rights issues
• Private placements
• Public offers
2. Strategic Moves
• Mergers and acquisitions
• Strategic realignment
3. Licence Downgrade
• Moving from international to national or regional licences if higher thresholds cannot be met
The consensus: “Don’t wait till the last minute.”
Capital Thresholds at a Glance
Under the new rules issued by the CBN:
• International banks: ₦500 billion
• National banks: ₦200 billion
• Regional banks: ₦50 billion
• Non-interest banks: ₦10–20 billion
Banks must meet the threshold appropriate to their licence category.
The Banks Setting the Pace
Shareholders pointed to banks such as Access Holdings, Zenith Bank, and Wema Bank as examples of institutions that have successfully raised hundreds of billions of naira, showing that recapitalisation is achievable and often rewarded by the market.
These banks are now better positioned to:
• Withstand economic shocks
• Finance large national projects
• Support MSMEs and private-sector growth
Bigger Picture: Why This Matters
The CBN has framed recapitalisation as a pillar of Nigeria’s ambition to build a $1 trillion economy by 2030. Stronger banks mean:
• Greater lending capacity
• Improved systemic stability
• Increased investor and depositor confidence
However, shareholders warn that if many banks are still scrambling late into 2025, the impact could ripple across:
• Consumer confidence
• Share prices
• Trust in the financial system
Bottom Line
• The recapitalisation drive is well underway, but not finished.
• Shareholders are urging speed, transparency, and decisive action from lagging banks.
• For banks that cannot meet the bar alone, mergers or acquisitions may be the only lifeline.
As the deadline approaches, the message from investors is clear:
Act now—or risk losing everything.
As Nigeria’s banking sector enters the final three months of its recapitalisation window, shareholders are turning up the heat on banks that are yet to meet the new minimum capital requirements (MCRs), warning that delays could severely hurt investors and destabilise confidence in the system.
What Is Happening?
Following the Central Bank of Nigeria’s recapitalisation directive, banks are required to shore up their capital base before the deadline expires. According to Central Bank of Nigeria, progress has been encouraging—but not complete.
• 16 banks have already achieved full compliance with the new capital thresholds.
• 27 banks have raised capital through public offers, rights issues, private placements, or mergers.
• Several banks are still behind schedule, sparking concern among minority shareholders.
CBN Governor Olayemi Cardoso described the exercise as the most significant banking-sector strengthening effort in over a decade, aimed at safeguarding financial stability and supporting Nigeria’s long-term economic ambitions.
Why Shareholders Are Worried
Leaders of shareholder associations say minority investors stand to lose the most if banks fail to meet the requirements.
Key concerns include:
• Licence revocation or forced liquidation for non-compliant banks
• Dilution or wipe-out of shareholder value
• Loss of confidence in affected bank stocks
Recent examples—such as failed mortgage banks—have reinforced fears that regulators may not hesitate to act decisively.
What Options Do Struggling Banks Have?
Shareholder groups agree that banks still have clear paths to survival, but time is running out. Suggested options include:
1. Capital Raising
• Rights issues
• Private placements
• Public offers
2. Strategic Moves
• Mergers and acquisitions
• Strategic realignment
3. Licence Downgrade
• Moving from international to national or regional licences if higher thresholds cannot be met
The consensus: “Don’t wait till the last minute.”
Capital Thresholds at a Glance
Under the new rules issued by the CBN:
• International banks: ₦500 billion
• National banks: ₦200 billion
• Regional banks: ₦50 billion
• Non-interest banks: ₦10–20 billion
Banks must meet the threshold appropriate to their licence category.
The Banks Setting the Pace
Shareholders pointed to banks such as Access Holdings, Zenith Bank, and Wema Bank as examples of institutions that have successfully raised hundreds of billions of naira, showing that recapitalisation is achievable and often rewarded by the market.
These banks are now better positioned to:
• Withstand economic shocks
• Finance large national projects
• Support MSMEs and private-sector growth
Bigger Picture: Why This Matters
The CBN has framed recapitalisation as a pillar of Nigeria’s ambition to build a $1 trillion economy by 2030. Stronger banks mean:
• Greater lending capacity
• Improved systemic stability
• Increased investor and depositor confidence
However, shareholders warn that if many banks are still scrambling late into 2025, the impact could ripple across:
• Consumer confidence
• Share prices
• Trust in the financial system
Bottom Line
• The recapitalisation drive is well underway, but not finished.
• Shareholders are urging speed, transparency, and decisive action from lagging banks.
• For banks that cannot meet the bar alone, mergers or acquisitions may be the only lifeline.
As the deadline approaches, the message from investors is clear:
Act now—or risk losing everything.