Nigeria’s banking sector is entering the decisive stage of its most ambitious recapitalisation exercise in more than a decade, with lenders adopting sharply different strategies to meet new regulatory capital thresholds ahead of the March 31, 2026 deadline set by the Central Bank of Nigeria (CBN).
While attention has largely focused on banks that have already crossed the ₦500 billion capital requirement for international banking licences, a growing number of lenders are pursuing phased strategies, first securing national licences before building toward the higher international tier.
Among them is FCMB Group Plc, whose approach highlights the strategic split emerging across the industry.
The recapitalisation policy, announced in March 2024, introduced a three-tier licensing framework of regional, national and international banks.
Under the rules, national banks must maintain a minimum paid-up capital of ₦200 billion, while international banks must hold at least ₦500 billion.
The reforms are designed to strengthen financial institutions, enhance resilience against economic shocks and position banks to finance large-scale projects that can support Nigeria’s long-term growth.
FCMB crossed the national threshold in 2024 after raising ₦147.5 billion in an oversubscribed public offer, which was reportedly taken up by more than 42,000 investors and exceeded its target by about 33 per cent.
The successful exercise pushed its banking subsidiary above the ₦200 billion requirement, securing its national banking licence well ahead of the regulatory deadline and easing immediate compliance pressure.
Since then, the group has continued to build towards international status. In October 2025, FCMB launched a second capital-raising exercise of about ₦160 billion, while its shareholders approved a broader ₦400 billion capital mandate in December 2025, giving the group flexibility to combine public offers, private placements and strategic asset sales.
Market analysts caution against interpreting phased capital raising as delay. “The regulator allows banks until 2026,” said a Lagos-based banking analyst. “What matters is whether capital is fully paid up and approved by then, not the sequence in which it is raised.”
Several large lenders chose speed over sequencing. Access Bank, Zenith Bank, Guaranty Trust Bank, United Bank for Africa (UBA), Fidelity Bank and First Bank of Nigeria have announced capital transactions that lifted their paid-up capital above the ₦500 billion international threshold, often through sizeable rights issues, private placements or a mix of equity issuance and asset divestments.
The advantage has been early regulatory clarity and stronger market positioning, though at the cost of greater shareholder dilution and exposure to volatile market conditions.
Other institutions have taken a more focused approach. Banks such as Wema Bank, Stanbic IBTC, Citibank Nigeria and Standard Chartered Bank Nigeria have met the ₦200 billion requirement and opted to retain national licences, reflecting strategic decisions about scale, market focus and the complexity of cross-border operations.
FCMB sits between these two camps. Having secured its national licence early, it now faces the strategic choice of whether to complete the journey to international status or consolidate domestically.
A top banking executive said that FCMB, Wema, Standard Chartered and Citibank have officially secured their national licences, with FCMB “in the final sprint” to reach the ₦500 billion mark required for an international banking licence.
The recapitalisation programme has wider implications for the sector. It has already prompted mergers, asset sales and licence downgrades, particularly among smaller banks prioritising sustainability over expansion. Islamic and non-interest banks have largely met their respective requirements, underscoring resilience in niche segments.
Macroeconomic conditions add another layer of complexity. High inflation, currency volatility and tight global funding conditions make equity issuance more challenging.
In this environment, phased recapitalisation can help manage valuation risk and investor sentiment, even if it attracts closer scrutiny.
As the deadline approaches, investor focus is shifting from announcements to confirmed inflows and regulatory approvals. Nigeria’s banking reset is no longer about intent, but about execution.
For FCMB and others pursuing phased strategies, the coming months will determine whether they join the ranks of international lenders or consolidate their position as strong national champions in a reshaped banking landscape.
