9 Nigerian banks have raised a mixed N2.3 trillion in recent capital because the March 31, 2026 recapitalisation deadline set by the Central Financial institution of Nigeria (CBN) attracts nearer, underscoring the sector’s accelerating push to fulfill stricter regulatory capital thresholds.
In accordance with a brand new report by S&P World Scores, rated Nigerian banks have up to now collectively raised about N2.3 trillion (roughly $1.5 billion), though this nonetheless falls barely in need of its estimated mixture capital requirement of N2.5 trillion (about $1.7 billion).
Learn additionally: UAE’s largest bank plans Nigeria entry with Lagos office
The report famous that out of the ten rated industrial banks, which collectively account for roughly 80% of whole banking system belongings, 9 already meet the brand new capital necessities for his or her respective banking licences. S&P mentioned it expects some smaller banks to discover alternate options equivalent to mergers, acquisitions or changes to their enterprise fashions to make sure compliance with the brand new guidelines.
“We count on general capitalisation for the banking sector to enhance as banks full their capital strengthening initiatives to fulfill the brand new capital necessities,” S&P mentioned, including that the majority rated banks concluded their capital elevating workouts in 2025, with only some nonetheless available in the market to finish ultimate tranches.
Underneath the CBN’s revised capital framework, which takes impact on March 31, 2026, banks with worldwide licences are required to keep up a minimal paid-up capital of N500 billion, whereas nationwide banks should meet a N200 billion threshold. This represents a pointy improve from the earlier minimal capital requirement of N25 billion.
For non-interest banks, the CBN requires these with nationwide licences to keep up a minimal paid-up capital of N20 billion, whereas non-interest banks with regional licences are required to carry at the very least N10 billion.
Nigeria’s largest banks have largely cleared the recapitalisation hurdle months forward of the deadline, deploying a mixture of pace, scale and strategic capital market exercise to fulfill the CBN’s harder requirements and, in some circumstances, place themselves extra competitively in anticipation of a extra demanding regulatory setting.
Yemi Cardoso, Governor of the Central Financial institution of Nigeria, disclosed in November 2025 that 27 banks had raised recent capital beneath the continued recapitalisation train, with 16 establishments having accomplished the method on the time.
Regardless of the progress, S&P warned that the Nigerian banking sector would proceed to face challenges in 2026. The tip of regulatory forbearance is anticipated to stress asset high quality, whereas greater capital necessities and anticipated rate of interest cuts might weigh on web curiosity margins.
Nonetheless, the rankings company mentioned it expects Nigerian banks to stay resilient and able to preserving profitability. The outlook is supported by progress in web curiosity earnings, pushed largely by transaction charges and fee earnings, in addition to a declining, although nonetheless elevated, price of danger.
Value of danger is anticipated to stay excessive following the CBN’s removing of regulatory forbearance measures, significantly because the creditworthiness of some restructured exposures stays weak. These elements might proceed to weigh on asset high quality in 2026 and past, particularly if oil costs fall considerably under expectations. Banks, nevertheless, have strengthened their capital buffers on the CBN’s request, offering some insulation in opposition to these pressures.
S&P analysts forecast Nigeria’s actual gross home product progress will common 3.7% over 2025 and 2026, supported by each the oil and non-oil sectors. Inflation is anticipated to steadily ease to round 21% in 2026, paving the best way for additional financial easing following the 50 foundation factors fee reduce in September 2025 and serving to to assist client demand.
Learn additionally: Ethiopia to open gold market to banks, phase out miner premiums
Inside this macroeconomic context, nominal lending progress is anticipated to stay robust at round 25%, pushed largely by investments in oil and gasoline, agriculture and manufacturing. Oil and gasoline lending is anticipated to learn from improved manufacturing following efforts to curb militancy and crude oil theft. Retail lending, nevertheless, is projected to contribute solely marginally to general mortgage progress attributable to its comparatively small share of banks’ mortgage portfolios.
Non-performing mortgage ratios rose sharply in 2025 to about 7.0% from 4.9% in 2024, reflecting the tip of regulatory forbearance on oil and gasoline exposures. Forbearance measures launched in 2020 allowed banks to maintain some oil and gasoline exposures in Stage 2, limiting provisioning necessities.
