Options for banks as recapitalisation pressure mounts

As recapitalization pressure mounts on banks, many Deposit Money Banks (DMBs), especially tier two banks, are considering various options, including limited mergers, to meet the Central Bank of Nigeria's (CBN) new minimum capital requirements. At the Monetary Policy Committee (MPC) meeting, it was confirmed that eight banks have already met the recapitalization requirements, while others are making progress towards the March 31, 2026 deadline.

The CBN Governor, Olayemi Cardoso, emphasized the importance of sustaining oversight in the banking system to ensure continued resilience and safety. The recapitalization exercise, which requires commercial and merchant banks to increase their minimum capital, has led to banks raising significant amounts of new capital.

However, some banks are still struggling to meet the requirements, with the CBN introducing regulatory measures to support their exit from forbearance and ensure compliance with the new capital thresholds. This move aims to uphold prudential standards and contribute to the overall health and.