Stronger Together: Mergers Emerge as Key Strategy in Banks’ Recapitalisation Push – CIBN
As Nigerian banks face a fast-approaching deadline to meet the Central Bank of Nigeria’s (CBN) new capital thresholds by March 2026, the Chartered Institute of Bankers of Nigeria (CIBN) has identified mergers and acquisitions (M&As) as a viable route for survival and growth.
Key Highlights from CIBN AGM 2025
Prof. Pius Olanrewaju, President/Chairman of Council at CIBN, emphasized during the Institute’s 2025 AGM in Lagos that:
• M&As are a lifeline for banks unable to raise capital independently.
• While some banks have successfully raised capital through rights issues, others must consider strategic partnerships to remain competitive.
• He stated: “Even where they cannot raise the money on their own, there is room for mergers. When you walk alone, you won’t be able to walk very far.”
️ Why This Matters
• The CBN had outlined three recapitalisation options: raising fresh capital, merging with other banks, or changing licence tiers.
• The push for stronger capital bases is part of broader efforts to ensure that banks can finance large-scale national projects in infrastructure, manufacturing, and technology.
Financial Performance: CIBN Reports Strong Growth
• 2024 Revenue: ₦3.82bn (↑ 37.32% from 2023)
• Internally Generated Revenue: ₦3.37bn (↑ 41.22%)
• Operating Expenses: Rose 23.99% due to inflation
• Net Operating Surplus: ₦1.99bn (↑ 48.06%)
Dr. Peter Ashade, CIBN’s National Treasurer, attributed the performance to laudable initiatives and strong performance across departments, despite economic pressures.
Human Capital Development & Youth Focus
• Former President Dr. Ken Opara called for increased contributions to the Human Capital Retention Fund, which stood at ₦298.46m as of December.
• Youth entrepreneurship and Gen Z engagement remain top priorities, with programs designed to prepare future banking professionals.
️ Forward-Looking Suggestions
• Mrs. Debola Osibogun, another past CIBN president, proposed including a banking museum in the institute’s programs to preserve industry history.
Bottom Line: As banks scramble to meet regulatory capital requirements, mergers are no longer just a fallback — they’re becoming a strategic necessity. The CIBN’s message is clear: collaboration, not competition, may be the key to survival in the evolving Nigerian banking landscape.
As Nigerian banks face a fast-approaching deadline to meet the Central Bank of Nigeria’s (CBN) new capital thresholds by March 2026, the Chartered Institute of Bankers of Nigeria (CIBN) has identified mergers and acquisitions (M&As) as a viable route for survival and growth.
Key Highlights from CIBN AGM 2025
Prof. Pius Olanrewaju, President/Chairman of Council at CIBN, emphasized during the Institute’s 2025 AGM in Lagos that:
• M&As are a lifeline for banks unable to raise capital independently.
• While some banks have successfully raised capital through rights issues, others must consider strategic partnerships to remain competitive.
• He stated: “Even where they cannot raise the money on their own, there is room for mergers. When you walk alone, you won’t be able to walk very far.”
️ Why This Matters
• The CBN had outlined three recapitalisation options: raising fresh capital, merging with other banks, or changing licence tiers.
• The push for stronger capital bases is part of broader efforts to ensure that banks can finance large-scale national projects in infrastructure, manufacturing, and technology.
Financial Performance: CIBN Reports Strong Growth
• 2024 Revenue: ₦3.82bn (↑ 37.32% from 2023)
• Internally Generated Revenue: ₦3.37bn (↑ 41.22%)
• Operating Expenses: Rose 23.99% due to inflation
• Net Operating Surplus: ₦1.99bn (↑ 48.06%)
Dr. Peter Ashade, CIBN’s National Treasurer, attributed the performance to laudable initiatives and strong performance across departments, despite economic pressures.
Human Capital Development & Youth Focus
• Former President Dr. Ken Opara called for increased contributions to the Human Capital Retention Fund, which stood at ₦298.46m as of December.
• Youth entrepreneurship and Gen Z engagement remain top priorities, with programs designed to prepare future banking professionals.
️ Forward-Looking Suggestions
• Mrs. Debola Osibogun, another past CIBN president, proposed including a banking museum in the institute’s programs to preserve industry history.
Bottom Line: As banks scramble to meet regulatory capital requirements, mergers are no longer just a fallback — they’re becoming a strategic necessity. The CIBN’s message is clear: collaboration, not competition, may be the key to survival in the evolving Nigerian banking landscape.