AS of the end of the first half of 2025, at least five banks have met the new capital thresholds issued by the Central Bank of Nigeria. They include Access Bank, Zenith Bank, Ecobank Nigeria, Lotus Bank, and Jaiz Bank.
In March 2024, the CBN directed commercial banks with international authorisation to increase their capital base to N500bn and national banks to N200bn, while those with regional authorisation are expected to achieve a N50bn capital floor.
Similarly, non-interest banks with national and regional authorisations will need to increase their capital to N20bn and N10bn, respectively. CBN gave the banks a deadline of March 2026.
Access Bank was the first tier-1 lender to hit the N500bn new capital threshold for banks with international authorisation as set by the CBN. Its parent company, Access Holdings, announced in late December that it had received regulatory approvals for its N351bn Rights Issue. The Holdco said that with the success, the bank’s share capital would increase to N600bn, N100bn above the regulatory minimum requirement. With this feat, Access Bank was able to cross the threshold within the same year as the CBN directive.
Following was Zenith Bank Plc, which raised N350.4bn from its combined rights issue and public offer to cross the threshold. With the additional raise, the bank’s share capital rose to N614.65bn, which is N114.65bn above the regulatory minimum requirement.
Next was Ecobank Nigeria, a national bank which Fitch Rating said needed only a small capital injection to meet the requirement and has already achieved compliance. It, however, estimated that the lender was still in breach of its total capital adequacy ratio requirement of 10 per cent, but it has further capital-raising plans to restore compliance.
Meanwhile, the bank’s parent company, Ecobank Transnational Incorporated, successfully tapped its $400m 10.125 per cent notes due October 15, 2029, for an additional $125m in May 2025.
The non-interest bank, Lotus Bank, revealed that its capital base already exceeded the N20bn required for a national non-interest bank. Speaking at a media parley in 2024, an executive director at the bank, Isiaka Ajani-Lawal, who represented the Managing Director, Mrs Kafilat Araoye, said, “Even before the CBN announced the new minimum capital base, we already had it as a national bank.”
In early January, another non-interest lender, Jaiz Bank, announced that it had crossed the new capital threshold with the listing of its N10.04bn from its private placement on the Nigerian Exchange Group following regulatory approvals from the CBN, Securities and Exchange Commission, and the NGX.
With less than a year to go before the expiration of the CBN deadline, other banks have started the second leg of their capital raise. During the first phase, a majority of them indicated that private placement, the debt market, and the international capital market were all avenues through which they could raise the required funds.
Last Thursday, the Guaranty Trust Holding Company stepped into the global capital market as it indicated that it will be seeking to raise about $100m from the international capital market and list its securities on the London Stock Exchange’s Main Market.
GTCO added that the capital raise is aimed at completing its capital-raising efforts. GTCO raised N209bn via a public offer in July 2024 and said the net proceeds of the new offering will be used primarily for the further recapitalisation of GTBank Nigeria and its growth strategy.
GTCO, while announcing the launch of a fully marketed offering of new ordinary shares, also gave notice of its intention to cancel (i) the listing of its existing Global Depository Receipts in the certificates representing certain securities (depositary receipts) category of the Official List of the United Kingdom Financial Conduct Authority, and in place of the GDRs, the company’s ordinary shares will be listed on the London Stock Exchange’s main market.
Commenting on the offer, the Group Chief Executive Officer of GTCO, Segun Agbaje, said, “This offering and transition to a full listing on the Official List of the FCA and to trading of the company’s shares on the London Stock Exchange’s main market for listed securities represents a pivotal moment in GTCO’s growth story, reinforcing our position as a forward-thinking African Financial Services Institution. This move builds on our tradition of ‘many firsts’ and innovation, as we continue to create exceptional value for our shareholders, customers, and broader stakeholders.
According to Afrinvest Research in its half-year review, the likes of Fidelity Bank, FCMB, Sterling Bank, Stanbic IBTC, and United Bank for Africa combined have a N733.70bn gap to fill ahead of the deadline. Wema Bank, through its N150bn rights issue and a special placement, looks set to meet N200bn in fresh capital.
The likes of Union Bank, Polaris Bank, and Keystone Bank (which is now under the control of the Federal Government through the CBN have yet to indicate publicly any recapitalisation moves.
Unity Bank is in a merger with Providus Bank and has secured a N700bn financial accommodation from the CBN. However, the new entity must raise additional funds to retain its national banking license.
Meanwhile, the outlook for tier-3 banks like Globus Bank, Standard Chartered Bank, Nova Bank, Titan Trust Bank, Premium Trust Bank, Optimus Bank, and Citibank Nigeria appears to be mergers and acquisitions, even though there have been no overt gestures yet.
International rating agency Fitch Ratings has reiterated in at least two commentaries that M&As were very likely for smaller banks in the country.