By NIyi Jacobs
Several Nigerian banks have moved beyond the Central Bank of Nigeria’s (CBN) recapitalisation benchmark, raising more capital than officially required as they position themselves for tougher regulations, economic uncertainty, and long-term growth.
Although the CBN’s recapitalisation programme set clear minimum capital thresholds for banks, industry data and recent market transactions show that some lenders are deliberately building buffers well above the regulatory floor. Analysts say the strategy reflects caution, forward planning, and a desire to remain competitive in an increasingly demanding banking environment.
Among the banks that have gone beyond the minimum target are GTCO Plc, which recently raised an additional ₦10 billion through a private placement despite already meeting the CBN requirement. Access Holdings, Zenith Bank, and UBA are also understood to be strengthening their capital positions through retained earnings, balance-sheet optimisation, and market-facing fund-raising strategies aimed at exceeding the minimum recapitalisation line.
Market watchers say these moves are driven by expectations that regulatory standards may tighten further, while inflation, foreign exchange volatility, and rising credit risks continue to pressure bank balance sheets.
However, some banking industry leaders argue that the current recapitalisation threshold itself is too low to prepare Nigerian banks for the scale of the economy and future shocks. Billionaire investor and chairman of First HoldCo Plc, Femi Otedola, has been particularly vocal on the issue.
Otedola recently argued that Nigerian banks should be thinking in terms of ₦1 trillion or more in capital, warning that modest recapitalisation could limit banks’ ability to fund large projects, absorb shocks, and compete with peers in other emerging markets.
According to him, banks with shallow capital bases may struggle to support major infrastructure, energy, and industrial projects that Nigeria urgently needs, forcing the country to rely excessively on foreign financing.
Analysts say the growing debate highlights a widening gap between regulatory minimums and what some market leaders believe is necessary for long-term stability and growth. While not all banks may be able to raise capital at that scale, the trend of exceeding CBN targets suggests a sector increasingly focused on resilience rather than mere compliance.
As recapitalisation gathers pace, the actions of early movers may ultimately redefine what is considered “adequate” capital in Nigeria’s banking industry, setting new benchmarks beyond the regulator’s minimum requirements
