Recapitalisation Milestone: Access, Zenith, Ecobank, Lotus, Jaiz Hit CBN’s New Capital Targets Ahead of Deadline
In a significant development for Nigeria’s banking sector, five banks have already met the Central Bank of Nigeria’s (CBN) new recapitalisation thresholds, well ahead of the March 2026 deadline. The banks that crossed the capital line by the end of H1 2025 are:
• Access Bank
• Zenith Bank
• Ecobank Nigeria
• Lotus Bank
• Jaiz Bank
This early compliance signals strong investor confidence, improved capital market access, and robust strategic planning, especially among tier-1 and non-interest banks.
Breaking Down the Capital Milestones
Access Bank was the first tier-1 bank to meet the ₦500 billion capital requirement for international banks. Its holding company, Access Holdings, raised ₦351 billion via a Rights Issue, bringing the total share capital to ₦600 billion—₦100 billion above the regulatory benchmark.
Zenith Bank followed suit, raising ₦350.4 billion through a combination of public offerings and rights issues, pushing its capital to ₦614.65 billion.
Ecobank Nigeria, a national bank, also crossed its threshold, backed by fresh capital from its parent company, Ecobank Transnational Incorporated (ETI), which raised an additional $125 million in May by reopening its $400 million 2029 bond. However, Fitch Ratings noted Ecobank still needs to meet its total capital adequacy ratio.
Lotus Bank, a non-interest national bank, had already exceeded the ₦20 billion capital requirement even before the CBN’s recapitalisation directive was announced. Executives reaffirmed their compliance during a 2024 media parley.
Jaiz Bank, another non-interest player, confirmed its readiness early in January 2025 with the listing of ₦10.04 billion raised via a private placement on the Nigerian Exchange, following regulatory approvals.
What Are Other Banks Doing?
With the March 2026 deadline fast approaching, many other banks have intensified fundraising efforts:
• GTCO plans to raise $100 million from the international capital market and list on the London Stock Exchange’s Main Market. This move comes after a successful ₦209 billion public offer in 2024.
• First HoldCo aims to raise ₦350 billion, targeting Q2 2025 for full compliance.
Meanwhile, Fidelity Bank, FCMB, UBA, Stanbic IBTC, and Sterling Bank reportedly face a ₦733.70 billion funding gap, according to Afrinvest Research. Wema Bank appears on track to meet its own ₦200 billion goal via a ₦150 billion rights issue and special placements.
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Merger Rumours & Regulatory Watch
Analysts project mergers and acquisitions (M&As) to dominate the recapitalisation narrative, especially among tier-3 banks such as Globus Bank, Nova, Optimus, and Titan Trust Bank. Unity Bank is already in a merger process with Providus Bank, backed by a ₦700 billion CBN accommodation, but still requires additional capital to retain its national license.
Internationally backed banks like Citibank Nigeria and Standard Chartered are expected to meet requirements smoothly with support from their global parents.
The CBN has tightened its oversight, mandating that banks must exit forbearance loans before distributing future dividends—a policy designed to enhance capital discipline and ensure better asset quality.
⸻
Sector Outlook: Brighter Days Ahead?
According to Afrinvest and CardinalStone, the outlook for the sector is broadly positive, driven by:
• Earnings growth potential
• Balance sheet optimisation
• Stricter capital discipline
• Increased investor confidence
While near-term dividend distributions may be affected by the CBN’s forbearance exit policy, the long-term impact points to a more resilient, transparent, and competitive banking landscape.
Final Thought:
This recapitalisation wave is more than a regulatory exercise—it’s a litmus test of strategic foresight, market trust, and operational resilience. Investors and analysts alike will be watching closely as the rest of the sector races toward compliance.
In a significant development for Nigeria’s banking sector, five banks have already met the Central Bank of Nigeria’s (CBN) new recapitalisation thresholds, well ahead of the March 2026 deadline. The banks that crossed the capital line by the end of H1 2025 are:
• Access Bank
• Zenith Bank
• Ecobank Nigeria
• Lotus Bank
• Jaiz Bank
This early compliance signals strong investor confidence, improved capital market access, and robust strategic planning, especially among tier-1 and non-interest banks.
Breaking Down the Capital Milestones
Access Bank was the first tier-1 bank to meet the ₦500 billion capital requirement for international banks. Its holding company, Access Holdings, raised ₦351 billion via a Rights Issue, bringing the total share capital to ₦600 billion—₦100 billion above the regulatory benchmark.
Zenith Bank followed suit, raising ₦350.4 billion through a combination of public offerings and rights issues, pushing its capital to ₦614.65 billion.
Ecobank Nigeria, a national bank, also crossed its threshold, backed by fresh capital from its parent company, Ecobank Transnational Incorporated (ETI), which raised an additional $125 million in May by reopening its $400 million 2029 bond. However, Fitch Ratings noted Ecobank still needs to meet its total capital adequacy ratio.
Lotus Bank, a non-interest national bank, had already exceeded the ₦20 billion capital requirement even before the CBN’s recapitalisation directive was announced. Executives reaffirmed their compliance during a 2024 media parley.
Jaiz Bank, another non-interest player, confirmed its readiness early in January 2025 with the listing of ₦10.04 billion raised via a private placement on the Nigerian Exchange, following regulatory approvals.
What Are Other Banks Doing?
With the March 2026 deadline fast approaching, many other banks have intensified fundraising efforts:
• GTCO plans to raise $100 million from the international capital market and list on the London Stock Exchange’s Main Market. This move comes after a successful ₦209 billion public offer in 2024.
• First HoldCo aims to raise ₦350 billion, targeting Q2 2025 for full compliance.
Meanwhile, Fidelity Bank, FCMB, UBA, Stanbic IBTC, and Sterling Bank reportedly face a ₦733.70 billion funding gap, according to Afrinvest Research. Wema Bank appears on track to meet its own ₦200 billion goal via a ₦150 billion rights issue and special placements.
⸻
Merger Rumours & Regulatory Watch
Analysts project mergers and acquisitions (M&As) to dominate the recapitalisation narrative, especially among tier-3 banks such as Globus Bank, Nova, Optimus, and Titan Trust Bank. Unity Bank is already in a merger process with Providus Bank, backed by a ₦700 billion CBN accommodation, but still requires additional capital to retain its national license.
Internationally backed banks like Citibank Nigeria and Standard Chartered are expected to meet requirements smoothly with support from their global parents.
The CBN has tightened its oversight, mandating that banks must exit forbearance loans before distributing future dividends—a policy designed to enhance capital discipline and ensure better asset quality.
⸻
Sector Outlook: Brighter Days Ahead?
According to Afrinvest and CardinalStone, the outlook for the sector is broadly positive, driven by:
• Earnings growth potential
• Balance sheet optimisation
• Stricter capital discipline
• Increased investor confidence
While near-term dividend distributions may be affected by the CBN’s forbearance exit policy, the long-term impact points to a more resilient, transparent, and competitive banking landscape.
Final Thought:
This recapitalisation wave is more than a regulatory exercise—it’s a litmus test of strategic foresight, market trust, and operational resilience. Investors and analysts alike will be watching closely as the rest of the sector races toward compliance.