The Central Bank of Nigeria (CBN) has confirmed that 13 out of the 33 participating banks are struggling to meet the new minimum capital requirements ahead of the March 31, 2026 deadline.
CBN Governor, Yemi Cardoso, disclosed that only 20 banks are currently on track to successfully complete the recapitalization process, raising concerns about the readiness of the remaining institutions. Read original
Pressure Mounts on 13 Banks
The development carries major implications for Nigeria’s banking sector. The 13 banks that fail to meet the capital threshold risk facing regulatory sanctions, operational restrictions, or in extreme cases, potential insolvency. Such outcomes could weaken depositor confidence — a key pillar of financial system stability.
Cardoso emphasized that the recapitalization policy was introduced to strengthen the resilience of banks, enabling them to withstand economic shocks, support customers more effectively, and drive sustainable growth. However, the ongoing exercise has exposed significant disparities in the financial strength of various institutions.
Economic Challenges Behind the Struggle
Several factors have contributed to the difficulties faced by the affected banks. Persistent economic instability, high inflation, and exchange rate volatility have placed considerable strain on financial institutions. Additionally, the race to raise fresh capital has intensified competition for liquidity and investor funding within the sector.
Smaller and mid-tier banks appear to be under the most pressure as they scramble to shore up their balance sheets before the deadline.
Four Weeks to Deadline
With just weeks remaining before the March 31, 2026 cutoff, the CBN has urged the affected banks to take swift and decisive action. The apex bank has pledged close monitoring and regulatory guidance to ensure compliance and prevent service disruptions.
Cardoso reassured the public that the CBN remains committed to safeguarding financial system stability. According to him, the recapitalization drive is not merely a regulatory requirement but a strategic move to position Nigerian banks for long-term growth and global competitiveness.
Mergers and Consolidation Likely
Industry analysts suggest that mergers, acquisitions, and strategic partnerships may become viable options for banks unable to independently meet the capital requirements. Such consolidation could ultimately result in a leaner, stronger, and more efficient banking sector.
Outlook for the Sector
The confirmation that 13 banks are struggling underscores the urgency of adaptation within Nigeria’s financial system. As the deadline approaches, effective execution of recapitalization strategies will be critical to maintaining public trust and avoiding systemic disruptions.
Ultimately, the CBN’s reform agenda aims to build a more robust banking industry capable of supporting Nigeria’s broader economic ambitions.
