According to a report by Proshare, only two of Nigeria’s top-tier banks have met the Central Bank of Nigeria’s (CBN) new minimum capital requirement of N500 billion.
The report confirms that Zenith Bank and Access Holdings Plc are currently the only Tier 1 institutions to surpass the target set for banks operating internationally.
The report, titled “Tier 1 Banks Report: Getting Bigger, Braver, and Dominant – The Class of 2025”, places Zenith Bank in the lead with a combined share capital and share premium of N614.65 billion. Access Holdings follows closely with N594.90 billion.
Meanwhile, other top banks like Ecobank Transnational Incorporated (ETI) and Guaranty Trust Holding Company (GTCO) are still short, holding N353.51 billion and N345.30 billion respectively.
The recapitalisation is part of a broader push by the CBN to strengthen the financial sector and prepare Nigerian banks for increased global competition. All Tier 1 banks are licensed for international operations, but the report notes that even some Tier 2 banks are aiming to cross the N500 billion mark to compete in the larger African and global banking space.
In a shift in the banking hierarchy, ETI has now overtaken Zenith Bank in terms of asset growth, largely due to a 67.11% surge driven by its operations in francophone West Africa. This reflects changing dynamics in how banks are evaluated, with asset growth now playing a bigger role than just asset size.
Fidelity Bank, which has recently been saddled with a N225 billion Supreme Court judgement related to its past acquisition of FSB International Bank, is expected to climb back into Tier 1 status by the end of the 2025 financial year.
The report notes that this will depend on the bank’s ability to manage the financial impact of the ruling without losing liquidity.
“The recapitalisation of Nigerian banks is not new, but the era in which it is now happening is different,” the report noted. It pointed to changing customer demands, with more focus on digital and personalised financial services.
Additionally, the Proshare report lists the five fastest-growing banks by asset growth: ETI (67.11%), Wema Bank (59.82%), FCMB (59.46%), FirstHoldco (56.60%), and AccessCorp (55.49%). However, it also raises concerns about rising non-performing loans and poor use of balance sheet leverage.
“While off-balance sheet transactions have grown exponentially globally, this type of banking operation remains relatively underutilised in Nigeria,” the report stated.
Although some banks may face short-term challenges in profitability and capital usage, the overall outlook is positive. Many banks are reportedly improving their risk management and working towards stronger capital positions.
The CBN’s deadline for the recapitalisation is March 2026, and Proshare concludes that most banks are progressing steadily toward the goal. However, a few institutions still have significant ground to cover in the months ahead.
