Nigerian banks are intensifying efforts to meet the Central Bank of Nigeria’s (CBN) 2026 recapitalisation deadline as the sector’s overall capital shortfall narrows to ₦783.4 billion, following a major funding breakthrough by Stanbic IBTC Holdings.
Stanbic IBTC recently concluded a ₦148.7 billion rights issue, which was oversubscribed by 21.9 per cent, raising a total of ₦181.4 billion.
Combined with an additional ₦140 billion capital injection from its parent company, the bank has now met the apex bank’s ₦200 billion minimum capital requirement for national banks.
This development leaves six banks — FCMB, Fidelity Bank, GTCO, UBA, Sterling Bank, and FirstHoldco — still grappling with the capital gap amid mounting pressure to shore up their financial base before the 2026 deadline.
Stanbic’s Acting Chief Executive and Group Financial Officer, Dr. Kunle Adedeji, credited the successful raise to shareholder confidence in the bank’s long-term strategy and performance.
“The turnout and participation of existing shareholders taking up their rights was impressive. The oversubscription is a strong vote of confidence in our brand,” Adedeji said.
With Stanbic joining Access Holdings, Zenith Bank, Ecobank, and Lotus Bank as part of the elite group of fully recapitalised lenders, industry watchers say the competitive landscape is shifting rapidly.
To close their funding gaps, the remaining banks are ramping up discussions with institutional investors, private equity firms, and international partners. Strategies being considered include rights issues, private placements, asset restructuring, and possible mergers.
Analysts believe the recapitalisation drive could trigger a wave of consolidations, especially among mid-tier banks with limited access to new capital. Though no formal merger announcements have been made, insider sources say some banks have begun exploratory talks.
“The Stanbic deal has reset expectations in the market. For some banks, merger talks are no longer hypothetical—they are now strategic,” said Chiazor Victor, Head of Research at FSL Securities.
He noted that investors are becoming more receptive to banks that communicate clear recapitalisation plans backed by strong governance frameworks.
Meanwhile, GTCO recently attracted international attention with a $105 million secondary listing on the London Stock Exchange. Fidelity, FCMB, and UBA are also reportedly in advanced talks with institutional investors to close their respective capital gaps.
Despite the challenges, analysts maintain that the sector remains stable, citing strong regulatory oversight and improved earnings outlooks.
They argue that the recapitalisation effort will strengthen banks’ ability to lend, fund infrastructure, and drive Nigeria’s economic diversification.
“The next 12 to 18 months will be defining for the banking sector,” an investment analyst said .
“We expect to see winners emerge based on strategy, speed, and stakeholder confidence.”
'
'Do you want to share a story with us? Do you want to advertise with us? Do you need publicity for a product, service, or event? Contact us on WhatsApp +2348183319097 Email: platformtimes@gmail.com
We are committed to impactful investigative journalism for human interest and social justice. Your donation will help us tell more stories. Kindly donate any amount HERE
