Nigeria’s banking sector is being reshaped by one of the most ambitious recapitalisation programmes in its history.
If you bank, invest, or conduct business in Nigeria, understanding how this process works and where each bank stands is crucial.
In 2024, the Central Bank of Nigeria (CBN) raised minimum capital requirements and introduced three banking licence tiers: regional, national, and international.
Banks have until March 31, 2026, to comply. Here’s what that means:
International banks require ₦500 billion in paid-up capital,
National banks require ₦200 billion,
Regional banks require ₦50 billion
Paid-up capital is critical; retained earnings do not count. Several banks, including Access Bank, Zenith Bank, GTBank, UBA, Fidelity Bank, and First Bank of Nigeria, have already met the ₦500 billion threshold and secured international banking licences.
Others, such as Stanbic IBTC, Citibank Nigeria, and Wema Bank, have secured national licences and appear focused on domestic operations.
First City Monument Bank (FCMB), a subsidiary of FCMB Group Plc, sits between these groups.
In 2024, it raised ₦147.5 billion through a public offer, pushing its banking subsidiary above ₦200 billion in paid-up capital and securing a national licence.
This means FCMB’s core banking operations are not at risk under the new rules. The bank is now raising additional capital to reach the ₦500 billion threshold required for an international licence.
This includes further share sales and other shareholder-approved funding options, with regulatory review ongoing.
Why does this matter to customers? A bank’s licence determines the scope of its operations.
International banks can finance cross-border trade and large-scale projects, while national banks focus on domestic lending. Both models are viable.
For FCMB customers, the national licence already guarantees operational continuity. An international licence would expand the bank’s services beyond Nigeria into the wider African market and globally.
The recapitalisation exercise is also driving mergers, licence downgrades, and niche strategies across the sector, making Nigeria’s banking system more structured and transparent.
By 2026, the system is expected to be stronger, not because every bank becomes international, but because each has chosen a sustainable and appropriate path.
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