A new report by Proshare has revealed that only two Tier 1 Nigerian banks — Zenith Bank and Access Holdings Plc (AccessCorp) — have successfully met the N500 billion recapitalisation target mandated by the Central Bank of Nigeria (CBN) for banks with international operating licences.
The report, titled “Tier 1 Banks Report: Getting Bigger, Braver, and Dominant – The Class of 2025”, shows that:
- Zenith Bank leads the pack with ₦614.65 billion in share capital and share premium.
- Access Holdings Plc follows closely with ₦594.90 billion.
Meanwhile, Ecobank Transnational Incorporated (ETI) and Guaranty Trust Holding Company (GTCO) trail with ₦353.51 billion and ₦345.30 billion, respectively.
Banking Sector Hierarchy Shifting
Although all Tier 1 banks in Nigeria hold international licences, the report highlights a changing power structure in the banking space. ETI, despite not meeting the recapitalisation threshold, has overtaken Zenith Bank in asset growth, expanding by 67.11%, largely driven by its francophone West Africa operations.
The Proshare report notes that borderline Tier 1 banks and leading Tier 2 banks are now aggressively targeting the N500bn benchmark to stay competitive across African and global markets.
Fidelity Bank Eyes Tier 1 Comeback
Despite facing a ₦225 billion Supreme Court liability over its legacy acquisition of FSB International Bank, Fidelity Bank is expected to re-enter the Tier 1 category by the end of 2025, provided it manages the fallout strategically. The report maintains that Fidelity still holds adequate liquidity to navigate the financial impact.
A New Era of Banking in Nigeria
According to the report, while recapitalisation is not new to the Nigerian financial sector, this current wave comes in a different economic era — one defined by evolving customer expectations, demand for digital innovation, and the need for bespoke financial services.
Proshare analysts observed that asset size alone is no longer enough to measure a bank’s strength. Asset growth, which captures how fast a bank is expanding, is now becoming a key metric. The top five banks by asset growth are:
- ETI – 67.11%
- Wema Bank – 59.82%
- FCMB – 59.46%
- FirstHoldco (First Bank Holding) – 56.60%
- AccessCorp – 55.49%
Challenges and Opportunities Ahead
Despite these gains, the report flags challenges such as non-performing loans (NPLs) and limited leverage of off-balance sheet instruments, which are underutilized in Nigeria compared to global standards.
HEED: Follow us on Instagram or any other social media platform and get the most reliable news directly in your favourite app!
Nonetheless, the long-term outlook is positive, as banks continue to strengthen their capital adequacy ratios and risk management frameworks in preparation for the March 2026 deadline set by the CBN.
Final Take
With only Zenith and Access Holdings hitting the recapitalisation mark so far, other banks face growing pressure to meet regulatory expectations. The Nigerian banking sector is heading for a new phase of competition, consolidation, and possibly mergers and acquisitions, as the race to recapitalise intensifies.
For more updates on banking news, economic developments, and financial trends in Nigeria, stay tuned to Naija Blog Daily.
NaijaBlogDaily# is visible on all social media platforms, and we bring you the latest Nigerian news on politics and economy, entertainment, and celebrity updates, including sports across Nigeria and beyond…
Keep visiting and following up with us on any social media platform you are using to keep you updated 💯
Remember (information brings knowledge and power).
STAY TUNED!!!
