Several Nigerian Banks Face Delays in Meeting Recapitalization Deadline
Detailed Breakdown:
As the June 2026 deadline set by the Central Bank of Nigeria (CBN) for recapitalization approaches, some Nigerian commercial banks are experiencing delays in raising the required capital. While prominent banks such as GTCO, Fidelity, Zenith, and Access have successfully completed their capital-raising efforts, others face challenges.
• First Bank of Nigeria Holdings (FBNH): Due to an ongoing legal battle with shareholders, FBNH has been unable to secure approval to raise an additional N350 billion. The bank still needs N248.7 billion to maintain its international license by the deadline.
• United Bank for Africa (UBA): UBA is awaiting Securities Exchange Commission (SEC) approval for its recapitalization strategy. The bank plans to raise additional funds to meet the required N384.2 billion in equity capital.
• Ecobank Transnational Incorporated (ETI): ETI has received shareholder approval to raise N840 billion, but it plans to rely on debt instruments rather than the local capital market. It recently issued $400 million bonds to kickstart its efforts.
• Polaris, Providus, and Unity Banks: While Providus and Unity merged to strengthen their financial base, Polaris Bank is undergoing a leadership transition after regulatory intervention from the CBN in January 2024.
Meanwhile, other banks, such as Optimus, Parallex, and SunTrust, have remained silent about their recapitalization plans, with analysts speculating that they may be exploring alternative methods, including private placements or foreign investments.
As the deadline looms, the banking sector is expected to witness more announcements or fundraising efforts in the coming months.
Detailed Breakdown:
As the June 2026 deadline set by the Central Bank of Nigeria (CBN) for recapitalization approaches, some Nigerian commercial banks are experiencing delays in raising the required capital. While prominent banks such as GTCO, Fidelity, Zenith, and Access have successfully completed their capital-raising efforts, others face challenges.
• First Bank of Nigeria Holdings (FBNH): Due to an ongoing legal battle with shareholders, FBNH has been unable to secure approval to raise an additional N350 billion. The bank still needs N248.7 billion to maintain its international license by the deadline.
• United Bank for Africa (UBA): UBA is awaiting Securities Exchange Commission (SEC) approval for its recapitalization strategy. The bank plans to raise additional funds to meet the required N384.2 billion in equity capital.
• Ecobank Transnational Incorporated (ETI): ETI has received shareholder approval to raise N840 billion, but it plans to rely on debt instruments rather than the local capital market. It recently issued $400 million bonds to kickstart its efforts.
• Polaris, Providus, and Unity Banks: While Providus and Unity merged to strengthen their financial base, Polaris Bank is undergoing a leadership transition after regulatory intervention from the CBN in January 2024.
Meanwhile, other banks, such as Optimus, Parallex, and SunTrust, have remained silent about their recapitalization plans, with analysts speculating that they may be exploring alternative methods, including private placements or foreign investments.
As the deadline looms, the banking sector is expected to witness more announcements or fundraising efforts in the coming months.