The Digest:
As the Central Bank of Nigeria's March 31 recapitalisation deadline approaches, at least 13 banks are racing to meet new minimum capital requirements, with analysts warning that mergers may reshape the industry. CBN Governor Olayemi Cardoso announced that 20 banks have fully met the requirements, while 13 are at advanced stages of capital-raising. Banks with international licences must raise capital to N500bn, national banks to N200bn, regional/commercial banks to N50bn, and non-interest banks to N20bn (national) or N10bn (regional). Financial consultant Boniface Chizea noted the sector's resilience surprised analysts, but banks unable to meet requirements may have to merge. Tunde Amolegbe of Arthur Steven Asset Management suggested discreet merger talks may be ongoing, with CBN potentially forcing consolidation. Ayokunle Olubunmi of Agusto & Co revealed many banks already have funds with CBN awaiting verification. Banks under regulatory intervention face separate timelines.
Key Points:
- The recapitalisation deadline could trigger significant industry consolidation.
- 13 banks face uncertainty as March 31 deadline looms.
- Stronger banks gain opportunity, while weaker ones seek mergers.
- This signals a potential restructuring of Nigeria's banking landscape.
- The timing, with verification ongoing, leaves room for last-minute compliance.
20 banks meet CBN's recapitalisation deadline, 13 at advanced stage, as mergers loom for those unable to raise N500bn, N200bn capital thresholds.
Sources: The Punch, CBN
