FCMB, Others Opt for Phased Recapitalisation Strategies in Nigeria’s Banking sector Drive

Nigeria’s banking sector is entering the decisive stage of its most ambitious recapitalisation exercise in more than a decade, with lenders adopting sharply different strategies to meet new regulatory capital thresholds ahead of the March 31, 2026 deadline set by the Central Bank of Nigeria (CBN).

While attention has largely focused on banks that have already crossed the N500 billion capital requirement for international banking licences, a growing number of lenders are pursuing phased strategies, first securing national licences before building toward the higher international tier.

Among them is FCMB Group Plc, whose approach highlights the strategic split emerging across the industry.

The recapitalisation policy, announced in March 2024, introduced a three-tier licensing framework of regional, national and international banks. Under the rules, national banks must maintain a minimum paid-up capital of N200 billion, while international banks must hold at least N500 billion.

The reforms are designed to strengthen financial institutions, enhance resilience against economic shocks and position banks to finance large-scale projects that can support Nigeria’s long-term growth.

FCMB crossed the national threshold in 2024 after raising N147.5 billion in an oversubscribed public offer, which was reportedly taken up by more than 42,000 investors and exceeded its target by about 33 per cent.

The successful exercise pushed its banking subsidiary above the N200 billion requirement, securing its national banking licence well ahead of the regulatory deadline and easing immediate compliance pressure.

Since then, the group has continued to build towards international status. In October 2025, FCMB launched a second capital-raising exercise of about N160 billion, while its shareholders approved a broader N400 billion capital mandate in December 2025, giving the group flexibility to combine public offers, private placements and strategic asset sales.

Market analysts caution against interpreting phased capital raising as delay. “The regulator allows banks until 2026,” said a Lagos-based banking analyst. “What matters is whether capital is fully paid up and approved by then, not the sequence in which it is raised.”

Several large lenders chose speed over sequencing. Access Bank, Zenith Bank, Guaranty Trust Bank, United Bank for Africa (UBA), Fidelity Bank and First Bank of Nigeria have announced capital transactions that lifted their paid-up capital above the N500 billion international threshold, often through sizeable rights issues, private placements or a mix of equity issuance and asset divestments.