Nigeria’s Bank Recapitalization: Progress, Compliance and Strategic Implications

Nigeria’s banking sector is in the midst of a major structural reset. Driven by the Central Bank of Nigeria’s (CBN) recapitalization programme, banks are required to strengthen their capital base in line with revised minimum thresholds that reflect the scale, scope and risk profile of their licence categories.

The objective is clear: build a more resilient, stable and globally competitive financial system capable of supporting Nigeria’s long-term economic ambitions.

As at today, a number of banks have successfully met their applicable recapitalization requirements, signaling early compliance and balance-sheet strength in a challenging operating environment.

Under the CBN’s directive according to Circular FPR/DIR/PUB/CIR/002/009, dated March 28, 2024,  banks are required to meet minimum capital levels based on their licence type:

These thresholds are designed to ensure that banks operating at larger scales have sufficient buffers to absorb risk, support credit expansion, and withstand economic shocks.

Banks and Capital Requirement Status

Based on publicly available disclosures and regulatory updates, the following institutions have met their respective recapitalization thresholds:

International Commercial Banks — Minimum ₦500 billion

These banks can operate internationally and across Nigeria:

National Commercial Banks — Minimum ₦200 billion

Banks licensed to operate nationwide (within Nigeria):

Regional Commercial Banks — Minimum ₦50 billion

These banks have regional licences, usually focused on zone-specific operations:

Non-Interest (Islamic / Ethical) Banks — Minimum ₦10-20 billion depending on License Scope

Banks operating under non-interest (Islamic) principles:

Merchant Banks — Minimum ₦50 billion

Specialized banks focused on investment and wholesale banking:

Why This Matters Beyond Compliance

While meeting capital requirements is a regulatory necessity, the broader implications are strategic.

Stronger capital bases enable banks to:

• Absorb credit and market risks more effectively

• Support larger-ticket lending and longer-term financing

• Improve confidence among depositors, investors and counterparties

• Strengthen governance and risk management frameworks

More importantly, recapitalization creates a platform for sustainable growth, provided capital is deployed and utilized efficiently and effectively to align with national development priorities and not business as usual.

A Strategic Perspective

At Nigpreneur.com, we view the recapitalization exercise not merely as a regulatory hurdle, but as a once-in-a-generation opportunity to reposition Nigeria’s banking sector.

Banks that pair capital strength with:

• clear strategic focus,

• disciplined execution, and

• responsible capital allocation

will be best positioned to lead the next phase of financial intermediation in Nigeria, supporting businesses, infrastructure, innovation and inclusive economic growth.

The recapitalization milestone is significant. What follows, how this capital is deployed, will determine the future trajectory of Nigerian banking and whether these capital injections can reposition Nigerian banks among the best in the world. The Central Bank of Nigeria (CBN) has also provided options for banks unable to meet the fresh capital injection requirements: they may either pursue mergers and acquisitions, consider downgrading their licence (as Nova Bank has already done), or, in extreme cases, close shop.