Recapitalisation Deadline Nears for Banks

Banks have a deadline to meet the new share capital benchmarks, set for March 2026. The Central Bank has made it clear that there will be no extensions—banks had over two years to prepare. Access Holdings is ahead of the game, having raised over N351 billion through a Rights Issue. This puts Access Bank over the N500 billion minimum capital requirement for Banks with International Authorization, well in advance of the deadline. The next year will be busy for the remaining 35 banks, with some making progress and others lagging behind.

Challenges have affected many banks, from boardroom crises to IT disruptions, but the path forward involves public offers, rights issues, private placements, mergers, or acquisitions. In fact, Providus and Unity Banks are in talks to merge, with the potential for more similar partnerships on the horizon. Younger banks like Globus Bank are also making headway, aiming to raise N150 billion through various means to meet the regulations.

Access Holdings has set a strong example by successfully executing a digital Rights Issue—the first of its kind in Nigeria. By embracing technology, they made the process efficient and accessible to shareholders. Other banks are still evaluating their options and will need to firm up their plans in the coming months. The Nigerian capital market has a history of adapting to change and meeting expectations, and it seems poised to do so once again in this time of transition.