The Central Bank of Nigeria (CBN) has reportedly granted Union Bank, Polaris Bank and Keystone Bank additional time to complete their recapitalisation process, providing a temporary regulatory reprieve for the three institutions currently under intervention management.
Sources familiar with the development disclosed that the apex bank approved a three-week window to enable the banks to conclude their recapitalisation efforts following the expiration of the industry-wide deadline on March 31, 2026.
While all Nigerian banks were required to meet the recapitalisation deadline, insiders said the CBN considered the unique legal and regulatory challenges confronting the three lenders before approving the extension.
Under the revised banking capital framework, commercial banks with national licences are required to maintain a minimum share capital and share premium of N200 billion, translating to a total capital requirement of about N350 billion to retain their national banking status.
The affected banks also have the option of downgrading to regional banking licences, which require a minimum capital base of N50 billion.
As part of the banking sector recapitalisation programme introduced by the CBN, banks with international operations are required to maintain a minimum capital base of N500 billion, while national and regional commercial banks must meet thresholds of N200 billion and N50 billion respectively.
The recapitalisation requirements also set minimum capital benchmarks of N50 billion for merchant banks, N20 billion for non-interest banks with national licences, and N10 billion for regional non-interest banks.
The three banks came under CBN intervention in January 2024 when the regulator dissolved their boards and management teams over alleged violations of provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.
According to the CBN, the infractions ranged from regulatory non-compliance and corporate governance failures to breaches of licensing conditions and activities considered detrimental to financial system stability.
The recapitalisation process has also been complicated by ongoing legal disputes involving some of the banks. In the case of Union Bank, former owners recently secured a Federal High Court judgment nullifying the CBN’s takeover of the institution. However, the apex bank has since appealed the ruling.
Sources indicated that the CBN remains committed to providing the affected banks with an opportunity to explore available recapitalisation options, including fresh public and private capital injections, mergers and acquisitions, and adjustments to their licence categories.
The banks are said to favour standalone recapitalisation strategies, relying primarily on new capital inflows and potential restructuring of their operational licences.
In its report marking the conclusion of the recapitalisation programme on March 31, 2026, the CBN announced that 33 banks successfully met the revised capital requirements.
The regulator disclosed that Nigerian banks collectively raised N4.65 trillion in fresh capital during the 24-month exercise, significantly strengthening the sector’s resilience and lending capacity.
According to the CBN, 72.55 per cent of the funds were sourced from domestic investors, while 27.45 per cent came from international markets, reflecting strong investor confidence in Nigeria’s banking industry.
The apex bank noted that a small number of institutions remained subject to ongoing regulatory and judicial processes, which are being managed through established legal and supervisory mechanisms.
CBN Governor, Olayemi Cardoso, recently assured stakeholders that Union Bank, Polaris Bank and Keystone Bank remain fully operational despite concerns over the recapitalisation deadline.
He reaffirmed the regulator’s commitment to supporting the affected institutions as they work through their legal and regulatory challenges while pursuing compliance with the new capital requirements.
