Nigerian Banks Contemplate License Downgrades Amid Recapitalization Program

The Central Bank of Nigeria (CBN) is pushing for a comprehensive recapitalization program to create bigger, stronger, and more resilient banks in Nigeria. At least seven lenders are considering scaling down their licenses to meet the new minimum capital thresholds set by the CBN.

The deadline for compliance is March 31, 2026, with a two-year compliance window ending in less than three months. Some banks are contemplating downgrading their international licenses to national or regional licenses due to the high cost of meeting the new capital requirements.

Olayemi, the CBN Governor, emphasized the need for banks to strengthen their operations and scope, especially for international operations.