By Matthew Denis
A new report from Proshare has revealed that only two of Nigeria’s top-tier banks, Zenith Bank and Access Holdings Plc, have so far met the Central Bank of Nigeria’s (CBN) new minimum capital threshold of N500 billion for internationally licensed institutions.
The report, titled “Tier 1 Banks Report: Getting Bigger, Braver, and Dominant – The Class of 2025,” identifies Zenith Bank as the frontrunner, with a combined share capital and share premium of N614.65 billion. Access Holdings trails closely behind at N594.90 billion.
Other major financial institutions, including Ecobank Transnational Incorporated (ETI) and Guaranty Trust Holding Company (GTCO), remain below the mark with N353.51 billion and N345.30 billion, respectively.
The CBN’s recapitalisation directive forms part of a broader strategy aimed at reinforcing the financial sector and positioning Nigerian banks for increased competitiveness within the African continent and beyond.
While all Tier 1 banks hold international licences, the report notes that some Tier 2 players are also pushing to meet or exceed the N500 billion benchmark, signalling a shift in ambition across the industry.
In a notable development, ETI has surpassed Zenith Bank in asset growth, driven largely by a 67.11 per cent expansion in its francophone West African operations. The report indicates this trend reflects an evolving banking landscape in which growth metrics are increasingly prioritised over absolute size.
Fidelity Bank, which has been impacted by a N225 billion Supreme Court judgement related to its previous acquisition of FSB International Bank, is projected to return to Tier 1 status by the close of the 2025 financial year. Its progress will depend on how effectively it absorbs the financial implications of the judgement while maintaining liquidity.
“The recapitalisation of Nigerian banks is not new, but the era in which it is now happening is different,” the report observed, citing heightened customer expectations for digital and customised financial services.
The Proshare report also ranked the top five fastest-growing banks by asset expansion: ETI (67.11 per cent), Wema Bank (59.82 per cent), FCMB (59.46 per cent), FirstHoldco (56.60 per cent), and AccessCorp (55.49 per cent).
Despite the momentum, the report raises caution over increasing levels of non-performing loans and underutilisation of balance sheet capacity. It notes that while off-balance sheet transactions are growing rapidly in global markets, Nigerian banks have yet to fully embrace these financial instruments.
While some institutions may encounter short-term challenges in optimising capital and boosting profitability, the overall outlook remains positive. The report suggests many banks are enhancing their risk frameworks and improving capital efficiency.
With the CBN’s recapitalisation deadline set for March 2026, Proshare concludes that while most banks are making steady progress, a few still face a considerable climb to meet the required capital threshold.