No fewer than 20 Nigerian deposit money banks are racing against time to meet the Central Bank of Nigeria’s (CBN) new capital requirements ahead of the March 31, 2026 deadline, as regulators intensify oversight to enforce compliance.

The recapitalisation exercise, announced by the CBN in 2024, mandates commercial banks with international licences to raise their minimum capital base to ₦500 billion, national banks to ₦200 billion, and regional banks to ₦50 billion. Non-interest banks are required to meet lower thresholds, depending on the scope of their licences.

Regulatory and industry sources say banks that fail to comply risk severe sanctions, including licence downgrades, forced mergers, or outright liquidation—measures often described in regulatory circles as the “CBN hammer.”

Many lenders have adopted different strategies to meet the new requirements, including rights issues, public offers, private placements, and merger talks. Stronger tier-one banks are reported to be close to full compliance, while several mid-tier and smaller banks are still scrambling to shore up their capital positions.

The CBN has maintained that the exercise is aimed at building a more resilient, globally competitive banking system capable of supporting Nigeria’s long-term economic growth, expanding credit to the real sector, and withstanding external shocks.

Industry analysts note that the ongoing recapitalisation could reshape Nigeria’s banking landscape, triggering consolidation similar to the 2004 banking reforms that significantly reduced the number of banks but strengthened the sector overall.