FCMB, others adopt phased recapitalisation paths as Nigeria’s banking reset enters critical stage

Nigeria’s banking sector has entered the decisive phase of its most far-reaching recapitalisation drive in over a decade, with lenders adopting markedly different strategies to meet new capital requirements ahead of the March 31, 2026 deadline set by the Central Bank of Nigeria (CBN).

While several top-tier banks have already surpassed the ₦500 billion minimum paid-up capital required for international banking licences, a growing group of lenders is opting for a phased approach—first securing national licences before building gradually toward the higher international threshold. FCMB Group Plc is among the banks illustrating this strategic divide within the industry.

The recapitalisation policy, unveiled by the CBN in March 2024, introduced a three-tier licensing framework comprising regional, national and international banks. Under the new regime, national banks are required to maintain a minimum paid-up capital of ₦200 billion, while international banks must hold at least ₦500 billion.

The reforms are aimed at strengthening the balance sheets of Nigerian banks, improving their resilience to economic shocks and positioning the sector to finance large-scale infrastructure and development projects critical to long-term economic growth.

FCMB’s phased strategy

FCMB crossed the ₦200 billion national threshold in 2024 after raising ₦147.5 billion through an oversubscribed public offer. The offer, which reportedly attracted more than 42,000 investors, exceeded its target by about 33 per cent, lifting the paid-up capital of its banking subsidiary above the regulatory minimum for a national banking licence.

By achieving this milestone early, FCMB secured regulatory compliance well ahead of the 2026 deadline, easing immediate pressure and giving the group room to plan its next steps.

Since then, the bank has continued to work towards international status. In October 2025, FCMB launched a second capital-raising exercise of about ₦160 billion. This was followed in December 2025 by shareholder approval for a broader ₦400 billion capital-raising mandate, providing flexibility to combine public offers, private placements and potential asset sales as market conditions allow.

Market analysts caution against viewing phased recapitalisation as hesitation or delay. “The regulator allows banks until 2026 to meet the requirements,” said a Lagos-based banking analyst. “What matters is that capital is fully paid up and approved by the CBN by the deadline, not necessarily the sequence in which it is raised.”

Diverging industry strategies

Several large lenders have chosen to move swiftly and decisively. Banks such as Access Bank, Zenith Bank, Guaranty Trust Bank, United Bank for Africa (UBA), Fidelity Bank and First Bank of Nigeria have executed major capital transactions that pushed their paid-up capital beyond the ₦500 billion threshold for international licences.

These banks have relied on a combination of rights issues, private placements and, in some cases, asset divestments. The strategy has provided early regulatory clarity and strengthened their market positioning, though it has also come with trade-offs, including higher shareholder dilution and exposure to volatile market conditions.

Other institutions have taken a more conservative stance. Banks including Wema Bank, Stanbic IBTC, Citibank Nigeria and Standard Chartered Bank Nigeria have met the ₦200 billion requirement and elected to retain national licences. Analysts say this reflects deliberate strategic choices about scale, market focus and the operational complexity of cross-border banking.

FCMB occupies a middle ground between these two camps. Having secured its national licence early, the group now faces a strategic decision: whether to complete the transition to international status or consolidate its position as a strong national player.

A senior banking executive said FCMB, Wema Bank, Standard Chartered Bank Nigeria and Citibank Nigeria have all formally secured their national licences, adding that FCMB is “in the final sprint” toward meeting the ₦500 billion requirement for an international licence.

Broader implications

The recapitalisation programme is already reshaping Nigeria’s banking landscape. It has triggered mergers, asset sales and licence downgrades, particularly among smaller banks prioritising sustainability over aggressive expansion. Islamic and non-interest banks, meanwhile, have largely met their respective capital thresholds, highlighting relative resilience within niche segments of the sector.

Macroeconomic conditions have added to the complexity of the exercise. Persistently high inflation, currency volatility and tight global funding conditions have made equity issuance more challenging. In this environment, phased recapitalisation strategies can help banks manage valuation risks and investor sentiment, even if they attract closer scrutiny from the market.

As the deadline draws nearer, investor attention is shifting from announcements to actual capital inflows and regulatory approvals. Nigeria’s banking reset is no longer about intent but execution.

For FCMB and other lenders pursuing phased strategies, the coming months will be decisive, determining whether they join the ranks of international banks or emerge as well-capitalised national champions in a reshaped and more resilient banking sector.