First Bank, FCMB, 4 Others Seek N731 Billion to Meet CBN Recapitalisation as Deadline Nears
- The CBN reviewed and raised the capital requirement targets for all Nigerian banks with a deadline of March 2026
- The banks have explored several options to meet the targets, including rights issues, private equity, and even secondary listing
- Six banks are still left in the race, trying to come up with a capital deficit of over N700 billion before the deadline
Ruth Okwumbu-Imafidon, a journalist with Legit.ng, has over a decade of experience in business reporting across digital and mainstream media.
Stanbic IBTC has recently concluded its N148.7 billion rights issue, making it one of the top banks to have met the recapitalisation requirements.
The rights issue was oversubscribed by 21.9%, bringing in a total of N181.4 billion to help the bank surge past the N200 billion capital requirements for national banks.
With this move, Stanbic IBTC joins the likes of Access Holdings, Zenith Bank, Ecobank, and Lotus Bank that have met the Central Bank of Nigeria (CBN) recapitalisation well ahead of the CBN's March 30, 2026, deadline.
Source: UGC
Announcing the close of the rights issue exercise, the Acting Chief Executive/Group Financial Officer of Stanbic IBTC, Dr Kunle Adedeji, said the existing shareholders demonstrated their sustained confidence in the brand by participating and taking up their rights.
The additional N140 billion capital injection from the parent company, Stanbic Africa Holdings Limited, has further strengthened the bank’s capital base, removing it from the list of banks considering possible mergers, the SUN reports.
Head, Research at FSL Securities, Chiazor Victor, noted that the oversubscription has raised confidence and reshaped investors' perception towards banks with clear recapitalisation strategies.
“It is now a race against time, and for some, merger conversations are no longer hypothetical. This time, they are strategic”.
Note that CBN has also directed the banks to submit their Capital Restoration Plans (CRP) ahead of the recapitalisation deadline.
Six banks yet to raise N731 billion
There are now six banks left in the race to raise N783.4 billion to meet the N500 billion capital requirement for national commercial banks before the deadline. The banks include:
- Fidelity Bank, with a funding gap of N194.4 billion
- GT Bank with a funding gap of N152.4 billion
- United Bank for Africa (UBA), with a gap of N144.8 billion
- FCMB, with a funding gap of N90.7 billion.
- First Bank of Nigeria, with a gap of N78.7 billion
- Sterling Bank with a N70 billion gap
Sources within the capital market have confirmed that merger fever is high and several mid-tier banks are in discussions with institutional investors to bridge the capital deficit.
For some others, there might be mergers or license downgrades to match their existing capital, or consolidation moves within the next few quarters.
However, they are all on course to meet the requirements in the coming quarters.
Source: Getty Images
GT Bank is, however, expected to make an announcement soon.
GTCO successfully lists on the London Stock Exchange
In related news, Guaranty Trust Holding Company (GTCO), the parent company of GT Bank, has successfully announced a $105 million secondary listing on the London Stock Exchange.
Legit.ng reports that GTCO CEO, Segun Agbaje, mentioned that part of the money raised in the exercise would go towards recapitalizing the banking subsidiary, GT Bank.
In line with this, the bank is expected to make an announcement soon about its current capital status.
Source: Legit.ng
