Recapitalization: Banks raise N2.5trn new capital, as 6 listed banks still raising funds
By Seun Ibiyemi
As financial institutions scramble to meet new capital requirements, the first half of 2025 has witnessed Banks raise over N2.5 trillion in fresh capital through various means, including rights issues and private placements.
This is according to figures reported in the 20th Nigeria Banking Sector Report 2025, titled “ACT-BOLD: Beyond a Trillion Dollar Economy” by Afrinvest
This aggressive move is in response to a directive from the Central Bank of Nigeria (CBN) for banks to increase their capital base. While many banks have met their targets, six listed banks are still in the process of raising the required funds.
The CBN Governor, Olayemi Cardoso, announced the new minimum capital requirements in March 2024, giving banks a two-year deadline to comply, which ends on March 31, 2026. The last major banking sector recapitalization exercise occurred in 2005 under the then CBN Governor, Charles Soludo, which saw the minimum capital base raised from N2 billion to N25 billion.
This move is a strategic effort to fortify the banking industry against both domestic and global economic shocks.
The apex bank mandated commercial banks with international authorization to increase their capital base to N500 billion, while those with national licenses were directed to raise N200 billion.
Banks with regional authorization were given a minimum capital floor of N50 billion while non-interest banks are required to raise a minimium of N20 billion for national license holders and N10 billion for regional licensees.
The current directive aims to correct the devaluation of the naira against major currencies since then, which has eroded the financial strength of banks. By raising new capital, banks will be better equipped to support the nation's economic growth, particularly in key sectors like agriculture, infrastructure, and manufacturing. The initiative is also intended to improve confidence among international investors and position Nigerian banks to compete more effectively on a global scale.
In its20th Nigeria Banking Sector Report, Afrinvest noted that the ongoing recapitalisation exercise had strengthened banks’ financial buffers, with at least four lenders,Access Corporation, Zenith Bank, Ecobank and Lotus Bank, already meeting the Central Bank of Nigeria’s new capital thresholds.
Several others are on track to comply before the June 2026 deadline, while a few are considering mergers and acquisitions as alternative strategies.
The report further highlighted that the banking sector grew by 15 per cent in real terms in Q1 2025, ranking among the top 10 contributors to Nigeria’s GDP.
However, it cautioned that without broad-based reforms, banks’ contributions could remain concentrated in services-based sectors, limiting inclusive economic growth.
The banks that have completed their capital raise so far are Access Bank, Zenith Bank, Guaranty Trust Bank, Wema Bank, Stanbic IBTC, Premium Trust Bank and Jaiz Bank.
Together, they have raised about N1.4 trillion in fresh capital, significantly expanding their share base by more than 55 billion units.
Access Bank was the first Tier-1 lender to surpass the N500 billion mark, following a N351 billion rights issue completed in late 2024.
Zenith Bank and GTBank (GTCO) have also crossed the international threshold, with audited results showing their capital positions above N500 billion.
Stanbic IBTC, a national license holder, raised N148.7 billion through a rights issue in June 2025, pushing its capital base beyond N200 billion.
Wema Bank, in a September 2025 disclosure, confirmed that it had raised N150 billion, bringing its total capital to N214.7 billion.
Jaiz Bank, the only listed non-interest lender, also scaled the regulatory bar with a capital position of N28.67 billion in its H1 2025 results.
Meanwhile, other major lenders, including United Bank for Africa (UBA), First Bank Holdings, Fidelity, Sterling, FCMB, and Union Bank, are still in the process of meeting the recapitalisation thresholds.
UBA Chairman, Tony Elumelu, told shareholders at the bank’s 65th Annual General Meeting that the group is on track to hit the N500 billion benchmark before the third quarter of 2025.
First Bank Holdings, with N398 billion in share capital and premium as of H1 2025, is planning a private placement to bridge the shortfall.
The recapitalisation exercise is part of CBN’s effort to strengthen the banking sector, improve financial stability, and position Nigerian banks to support the government’s trillion-dollar economy ambition.