Nigerian Banks' Recapitalization Drives Market Cap to N16.14tn by 2025

The recapitalization exercise by the Central Bank of Nigeria has led to a significant increase in the market capitalization of 13 Nigerian banks, including Guaranty Trust Holding Company Plc (GTCO) (NGX: GTCO), Zenith Bank Plc (NGX: ZENITHBANK), and United Bank for Africa Plc (UBA) (NGX: UBA), reaching N16.14 trillion by 2025. This represents an 86.8% surge from N8.64 trillion in 2024.

The market valuation implies that bank stocks now account for approximately 16.23% of the total market capitalization of listed equities on the Nigerian Exchange Group (NGX) (NGX: NGXGROUP). Key banks like GTCO, Zenith Bank, and UBA have seen substantial gains in their market capitalization, reflecting a positive trend in the banking sector.