All indicators show that several Nigerian banks are on course to meet and surpass the Central Bank of Nigeria’s (CBN) recapitalisation targets even before the March 2026 deadline.
Several big players in Nigeria’s banking industry like FCMB and GTCO have completed the first part of their capital raise efforts, through public offers and rights issues, or private placement in a few cases.
Interestingly, the market outlook remains positive, especially given the enthusiasm that has driven already completed capital raising exercises.
Analysts at Cardinalstone Registrars told TimesNow.com.ng that banks unable to meet the capital requirements might switch licenses to reduce their burden.
They put it thus;
The research analysts also project that despite the dilution the raised capital will bring, earning assets will expand to make up for it.
Stakeholders in the industry are positive that the recapitalization exercise, when completed, will birth a stronger banking sector in Nigeria by 2026, the SUN reports.
Olatunde Amolegbe, CEO of Arthur Stevens Asset Management, noted in an interview that the exercise will drive significant investment into the sector, and engineer economic transformation.
Giving his outlook for the Nigerian capital market, Amolegbe, also the former president of the Chartered Institute of Stockbrokers, predicted that as the banks achieve their capitalization targets, the sector will get stronger.
He also projected that other macroeconomic indicators will improve in 2025m with inflation declining to about 27.4% before the end of the year, and benchmark interest rates moderating.
Amolegbe commended the CBN’s efforts to stabilize the foreign exchange market, adding that this would encourage investment into the Nigerian capital market due to reduced uncertainty, and perhaps help lower inflation rates.
He explained;
Amolegbe projected that with the capitalization exercises, and the listing of the Dangote Refinery and Nigerian National Petroleum Corporation Limited (NNPCL), the All Share Index could grow up to 39%.
In related news, TimesNow.com.ng reported that five Nigerian banks hope to raise N1 trillion capital, ahead of the March 2026 deadline.
Interviews with the managing directors showed that some would be doing a public rights offer, while a few would explore other options.
With the new requirements, commercial banks with international authorization have a threshold of N500 billion, while national and regional banks have respective thresholds of N200 billion and N50 billion to meet.
Source: TimesNow.com.ng
