Nigerian banks recapitalisation N900bn in 2025 as they work to meet new capital requirements set by the Central Bank of Nigeria (CBN). This is part of ongoing efforts to strengthen their financial positions ahead of the March 2026 deadline.
The CBN has directed commercial banks with international authorisation to increase their capital base to N500bn, while national banks must raise N200bn. Regional banks face a target of N50bn, and non-interest banks are required to meet N20bn and N10bn thresholds for national and regional authorisation, respectively.
Capital Raised So Far
Nigerian banks have already made significant progress, with N1.7tn raised from the capital market by the end of 2024. Agusto & Co reported that N800bn was raised during the first seven months of 2025. The report also noted that eight banks have already met the capital thresholds.
This capital raise has been crucial for banks as they prepare for the upcoming deadline. The CBN’s directive has triggered increased recapitalisation activities, which are expected to continue in the remaining months of 2025.
Increased Capital to Provide Buffer for Risks
The report predicts that Nigerian banks will need to inject another N900bn into the sector by the end of 2025. This capital will help meet the new CBN capital thresholds and create a financial buffer for business risks and near-term growth plans.
Domestic investors have played a key role in raising the capital, underscoring strong local support for Nigerian banks. However, Agusto & Co cautioned that the termination of regulatory forbearance could negatively affect bank profitability in the short term. A recovery in profits is expected by 2026.
Impact of Regulatory Changes on Bank Profitability
The termination of regulatory forbearance by the CBN is expected to result in higher impairment charges for Nigerian banks. In 2024, the proportion of non-performing loans (NPLs) in the banking sector increased to 5.2%, up from 4% in the previous year. This rise was partly due to the 40.4% depreciation of the naira.
Agusto & Co indicated that banks must now appropriately classify these loans and make the necessary provisions. This will result in a surge in impairment charges and potentially impact profitability in 2025. Despite these challenges, Agusto & Co expects a rebound in profits by 2026 as the capital raised is fully deployed.
CBN’s Role in Ensuring Compliance
The CBN’s decision to end forbearance also requires banks to comply with regulatory standards on loan classifications and single obligor limits. This will address breaches caused by the previous forbearance.
In response, the CBN mandated banks to submit capital restoration plans. These plans will include strategies to restore regulatory compliance, such as cost optimisation, risk asset reduction, and business model adaptations. Banks must also disclose key metrics on a quarterly basis to ensure transparency and support supervisory oversight.
Conclusion
The banks recapitalisation N900bn process remains crucial as Nigerian banks work to meet the CBN’s capital requirements. While the termination of regulatory forbearance presents challenges, it will ultimately help strengthen the sector. By the end of 2025, Nigerian banks will have successfully raised the required capital, paving the way for sustained growth and profitability in 2026.
