Nigeria’s Banking Sector Reset Reaches Final Phase

camps. Having secured its national licence early, the group faces a strategic choice: complete the journey to inter­national status or consolidate its position as a strong national champion.

A senior banking executive familiar with the process said FCMB, alongside Wema Bank, Standard Chartered and Citibank Nigeria, has officially secured its national licence, with FCMB “in the final sprint” toward the N500 billion mark required for an inter­national licence.

That sprint comes amid chal­lenging macroeconomic condi­tions. High inflation has eroded real returns, currency volatility has complicated foreign investor participation, and tight global financial conditions have made equity issuance more selective.

In this environment, phased recapitalisation can help banks manage valuation risk and inves­tor sentiment — even if it attracts closer regulatory and market scrutiny.

Sector-Wide Consequences

Beyond individual balance sheets, the recapitalisation pro­gramme is reshaping Nigeria’s banking landscape. Smaller lend­ers, in particular, have been forced to confront hard choices.

The new thresholds have al­ready triggered mergers, asset sales and licence downgrades, as some banks prioritise sustain­ability over expansion.

Islamic and non-interest banks have largely met their respective capital requirements, underscoring resilience in niche segments of the market.

For the broader industry, how­ever, the reforms are accelerating consolidation and sharpening dis­tinctions between banks with re­gional, national and international ambitions.

Investor attention is also evolv­ing. Early excitement around an­nouncements and capital-raising plans is giving way to a sharper focus on execution — confirmed inflows, regulatory approvals and the quality of capital raised.

“Nigeria’s banking reset is no longer about intent,” said one fund manager in Lagos. “It’s about delivery. Investors want to see cash in the door and licences secured, not just roadshows and resolutions.”

The Final Stretch

With just two months until the CBN’s deadline, the recapi­talisation drive has entered its endgame. For banks that moved early, the challenge is to deploy new capital profitably without compromising returns.

For those taking phased ap­proaches, the pressure is to close the gap in time and convince in­vestors that strategy, not hesita­tion, is guiding their actions.

For FCMB, the next two months will be pivotal. Its abil­ity to complete its capital pro­gramme will determine wheth­er it joins the ranks of Nigeria’s international lenders or cements its role as a formidable national player.

Either outcome will reflect the broader truth of Nigeria’s banking overhaul: the reset is re­defining not just balance sheets, but the strategic identities of the institutions that underpin Afri­ca’s largest economy.