Nigeria Nigeria's Tier-2 Banks in 'Race for Capital' as CBN Deadline Nears

The Digest:

In the race for capital, a new report by SB Morgen (SBM) Intelligence warns that Nigeria's Tier-2 banks are under mounting pressure to meet the CBN's 2026 recapitalisation deadline, or risk being part of a merger wave. The report highlights how key banks are responding to the new capital requirements.

Key Points:

• A new report warns that Tier-2 banks face pressure to meet the CBN's March 2026 recapitalisation deadline.
• The minimum capital requirement for national banks is N200 billion, and N500 billion for international banks.
• The new policy is designed to strengthen financial stability and support the government's ambition of a $1 trillion economy.
• Fidelity Bank, Wema Bank, and others have shown significant resilience and share price growth.
• Banks like FCMB, Fidelity, Sterling, and Wema are raising capital through public offers, rights issues, and private placements.
• SBM expects consolidation, including mergers and alliances, to accelerate as the deadline approaches.

The report underscores that Tier-2 banks are at a critical juncture, with their ability to navigate these regulatory headwinds determining their future in Nigeria’s evolving financial landscape.

Source: The Cable, SBM Intelligence Report