Shareholders Pressure Banks as Recapitalisation Deadline Approaches

With about three months remaining before the deadline for bank recapitalisation expires, shareholder groups have urged banks yet to meet the new minimum capital requirements to take urgent action.

Leaders within the minority investors’ community have expressed concern that shareholders would bear the brunt if some banks fail to meet the revised thresholds within the stipulated timeframe.

Following the final Monetary Policy Committee meeting of 2025, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, disclosed that 16 banks have already achieved full compliance with the new capital requirements ahead of the deadline.

Cardoso reiterated the CBN’s commitment to ensuring an orderly conclusion to the recapitalisation exercise during a presentation at the U.S.-Nigeria Executive Business Roundtable in Washington, D.C. He noted that Nigeria is currently in the final phase of its most significant banking-sector strengthening initiative in over a decade.

According to the CBN governor, the recapitalisation programme is aimed at safeguarding financial stability, expanding banks’ lending capacity, and positioning the financial system to support Nigeria’s broader economic transformation. He added that while 16 banks have met or exceeded the new thresholds, 27 banks have raised capital through public offers, rights issues, private placements, and mergers.

While commending the progress made so far, minority shareholders have cautioned that they could suffer losses if some banks fail to complete the process successfully.

The National Coordinator of the Independent Shareholders Association of Nigeria, Moses Igbrude, described the recapitalisation exercise as encouraging, highlighting the strong participation of investors and instances of oversubscription as evidence of confidence in Nigeria’s capital market.

He noted that banks unable to meet the highest capital category should consider operating under lower licence tiers, adding that government-owned banks should be recapitalised through the CBN and later privatised to recover public funds and deepen market participation.

Igbrude urged banks that are lagging behind to explore all available options, including private placements, mergers, and acquisitions, warning against complacency as the deadline approaches.

Similarly, the National Coordinator of the Pragmatic Shareholders Association, Bisi Bakare, called on banks to act swiftly, advising those struggling to meet the requirements to pursue mergers, strategic realignments, or acquisitions rather than risk regulatory sanctions.

The Chairman of the Ibadan Zone Shareholders Association, Ayoola Gilbert, also called on the CBN to develop and communicate clear contingency plans to protect the integrity of the banking system as the deadline nears.

He stressed that the recapitalisation policy goes beyond balance sheet expansion, describing it as a critical pillar in Nigeria’s drive toward a $1 trillion economy by 2030. According to him, banks must be strong enough to absorb domestic and global shocks while providing the scale of credit required to support national development, MSMEs, and key economic sectors.

Gilbert pointed to banks such as Access Holdings, Zenith Bank, and Wema Bank as examples of institutions that have successfully raised significant capital, demonstrating that recapitalisation is achievable and market-rewarded. He urged bank boards and management to act decisively, while calling on the CBN to clearly outline an orderly consolidation framework well ahead of the deadline.

Also speaking, the Chairman of the Progressive Shareholders Association of Nigeria, Boniface Okezie, expressed confidence that most banks would meet the CBN’s deadline. However, he warned that banks unable to do so should seek mergers or acquisitions early, noting that liquidation remains the likely outcome for those that fail to recapitalise—an outcome that would disproportionately affect shareholders.

The CBN had earlier announced revised minimum capital requirements, setting thresholds at ₦500 billion for international banks, ₦200 billion for national banks, ₦50 billion for regional banks, and between ₦10 billion and ₦20 billion for non-interest banks.