Nigerian Banks Consider Mergers as CBN Recapitalization Deadline Looms

Nigerian banks, including Union Bank, Keystone Bank, and Wema Bank, are engaging in merger talks as the Central Bank of Nigeria's recapitalization deadline approaches in March 2026. The deadline is pressuring banks to consider mergers or acquisitions to meet the new capital thresholds, potentially leading to significant ownership changes in the banking sector.

Union Bank is particularly under scrutiny due to unresolved legal and structural issues involving its former core investor, TGI Group. Keystone Bank has attracted increased investor attention, including from local consortiums seeking preferred bidder status.

Wema Bank is also speculated to be exploring potential partnerships for a merger. The banking sector is undergoing aggressive capital restructuring, with the deadline fast approaching.