By Obinna Uballa
With just one week to the March 31, 2026 deadline, Nigerian banks are making a final push to meet the Central Bank of Nigeria’s (CBN) recapitalisation requirements, as the apex regulator prepares to issue a decisive update on the exercise this week.
Investigations indicate that most deposit money banks have substantially met the new capital thresholds, while a handful are resolving last-minute regulatory, structural, and documentation issues to secure full compliance before the cutoff date.
Top officials at the CBN confirmed that a formal status report on the recapitalisation programme is expected by Tuesday or Wednesday, raising expectations that the process will largely be concluded within the stipulated timeframe.
The recapitalisation policy, introduced in March 2024, mandates banks to shore up their capital base, with international commercial banks required to meet a minimum threshold of N500bn, alongside lower benchmarks for other categories.
Speaking after the 304th Monetary Policy Committee meeting in Abuja, CBN Governor Olayemi Cardoso expressed optimism that the exercise would be completed on schedule, even as a few institutions continue to fine-tune their strategies.
“And quite frankly, I expect the process to conclude within the stipulated time,” Cardoso said, noting that some banks were still evaluating options, including mergers and other consolidation arrangements.
He revealed that the sector has already mobilised significant capital, with total verified and approved funds reaching N4.05tn as of February 19, 2026.
According to him, N2.90tn – representing 71.6 per cent – was raised domestically, while $706.84m (about N1.15tn) accounted for 28.33 per cent from foreign investors, underscoring growing confidence in Nigeria’s banking industry.
“This mix reflects strong participation from both local and international investors and signals broad confidence in the sector,” the CBN governor added.
Despite the progress, findings show that a few banks are yet to finalise the process, largely due to delays linked to an ongoing merger between two institutions. However, there are strong indications that the deal could be concluded within the week.
Uncertainty also lingers around three banks currently under regulatory intervention, whose final capital positions depend on supervisory decisions and potential support measures by the regulator.
The CBN had earlier clarified that such institutions would be treated as special cases and would not necessarily follow the same recapitalisation timeline as other banks.
Cardoso reiterated this position, explaining that legal and structural considerations have affected the sequencing of their compliance process.
“It would be unreasonable to expect them to follow the same sequence as others that have had ample time since the policy was introduced,” he said.
He, however, reassured depositors that funds in the affected institutions remain safe, noting that they continue to operate under strict regulatory oversight.
Financial analysts say the recapitalisation drive has exceeded initial expectations, particularly given early concerns about the size of the capital shortfall.
Head of Financial Institutions Ratings at Agusto & Co, Ayokunle Olubunmi, who spoke with Punch Newspaper, described the exercise as largely successful, highlighting the strong role played by domestic investors.
“When the exercise began, there was widespread scepticism due to the huge capital gap, but the progress so far has been impressive,” he said.
Olubunmi explained that most banks yet to receive final clearance had already secured the required funds and were only awaiting regulatory verification.
“It’s not that they are still sourcing funds. The capital is already with the CBN; they are simply completing documentation for certification,” he added.
Industry sources further revealed to The New Diplomat that about three banks remain outstanding, with two expected to conclude their merger this week, while the third is also on track to meet the requirement before the deadline.
