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Recapitalisation Reality Check: Uncovering the Truth Behind Nigeria’s Banking Boom

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CBN, Bank

By Blaise Udunze

When the Central Bank of Nigeria (CBN) announced a new round of bank recapitalisation in March 2024, many expected the leading banks, especially those boasting record-breaking profits in the hundreds of billions and trillions, to sail through with ease. Their financial statements glistened with prosperity, with expanding balance sheets, rising dividends, and bullish share prices.

Indeed, five of Nigeria’s top 10 banks reported a combined pre-tax profit of N4.6 trillion in 2024, showing a staggering 70 percent increase from the previous year, with Zenith Bank and Guaranty Trust Holding Company crossing the trillion-naira mark for the first time. The results painted a picture of robust profitability and resilience.

Yet, barely months after the profit announcements, the same banks found themselves racing back-to-back to the capital market to raise fresh funds. By the first half of 2025, Nigeria’s banking industry was at a crossroads. Behind the glitter of trillion-naira profits lay a more sobering reality of an industry scrambling to meet the CBN’s recapitalisation directive.

The contradiction is stark: record profits on one hand, desperate fundraising on the other. If the banks were truly as profitable and resilient as they claimed, they wouldn’t be begging investors for fresh equity to meet new thresholds.

Behind the strong showing of the market leaders lies an even deeper concern. The smaller commercial and regional banks are struggling to formulate credible recapitalisation strategies. As the March 31, 2026 deadline looms, the CBN has confirmed that only 14 banks have so far scaled the recapitalisation hurdle. That leaves nearly 19 institutions still in search of capital in a market already skeptical of their true worth.

The recapitalisation push has therefore become the clearest indicator of the sector’s underlying fragility. The CBN’s new capital requirements of N500 billion for international banks, N200 billion for national banks, and N50 billion for regional banks have forced lenders to confront a fundamental question. How much of their reported profits actually represents real financial strength?

Much of Nigeria’s profit boom has been a deception, a mirage built on foreign exchange revaluation gains and arbitrary fees rather than genuine operational efficiency. The unification of exchange rates and subsequent naira depreciation in 2023 and 2024 delivered massive revaluation windfalls on dollar-denominated assets, inflating balance sheets overnight. But these were paper gains, not cash profits, and could not be deployed to strengthen capital or fund new loans.

Beyond FX gains, Nigerian banks have increasingly relied on fees and charges as easy revenue. Despite repeated CBN sanctions for breaching its Guide to Charges, banks continue to extract billions from customers through transfers, withdrawals, ATM fees, SMS alerts, and account maintenance. With over 312 million active bank accounts, these charges now contribute more to profitability than traditional lending or genuine financial intermediation.

It is little surprise, then, that the recapitalisation exercise has exposed the widening gap between declared profitability and true solvency. While five Tier-1 banks together raked in N4.6 trillion in pre-tax profit in 2024, nearly 70 percent higher than in 2023, many mid-tier banks can barely keep pace. The recapitalisation gap across the sector is now estimated at N4.7 trillion.

As of September 2025, only 14 banks had crossed the line, while others scramble for mergers, rights issues, or license downgrades to survive. The CBN’s insistence that only paid-up capital and share premium will count while excluding retained earnings has stripped away the accounting camouflage that once masked weakness.

For the market leaders, the race has been aggressive but achievable. Access Holdings raised N351 billion through a fully subscribed rights issue. Zenith Bank’s N350.4 billion hybrid offer was oversubscribed by 160 percent. Wema Bank, once a mid-tier lender, successfully raised N200 billion and became a national success story. Among specialised institutions, Greenwich Merchant Bank sealed its own recapitalisation, supported by capital injections and debt-to-equity conversions that secured its merchant banking license, while Jaiz Bank rose above the N20 billion target to remain the flagship of Islamic banking. Lotus has met the N10 billion bar, consolidating its place in Nigeria’s fast-growing alternative sector.

Another notable entrant is Globus Bank, which in 2024 raised N52.9 billion to lift its capital to N98.6 billion and followed in 2025 with a further N102 billion via rights issues and private placements. The raise subscribed entirely by existing shareholders took its capital above N200 billion. The bank now awaits final verification from the CBN before being formally recognized as compliant.

For others, however, it has been a painful crawl. Fidelity Bank’s N205.45 billion hybrid offer still leaves a N160 billion gap to the N500 billion benchmark. Guaranty Trust Bank reached its own target through a two-phased approach that started with a rights issue in Nigeria that netted N365.8 billion. Subsequently, GT listed shares on the London Stock Exchange with proceeds of $105 million to reach the required target, while UBA Plc launched a N157 billion rights issue in July 2025, following a N239 billion offer in November 2024 that was oversubscribed at N251 billion, with N240 billion accepted. The new offer, extended to September 19, 2025, helped the bank meet the CBN’s N500 billion capital requirement.

As of September 2025, First Bank has secured N187.6 billion and plans an additional N350 billion in private placements, but it still needs to secure the remaining funds to meet the CBN’s requirements.  FCMB Group Plc launched a N160 billion public share offer to meet the CBN’s N500 billion capital requirements for international banks, with the offer closing on November 6, 2025. The offer follows a successful N147.5 billion share sale in 2024.

Fidelity raised N176 billion in fresh capital in 2024 and is moving to get an additional N195 billion via private placement before the end of the year. Sterling Bank has not yet completed its recapitalisation as it commenced an N87.067 public offer. This offer follows completion of a N75 billion private placement and a N28.79 billion rights issue, which was significantly oversubscribed by its shareholders.

Consolidation pressures are once again reshaping Nigeria’s banking landscape. Titan Trust’s acquisition of Union Bank and the completed Providus and Unity Bank’s merger reflect the reality that not every institution will raise sufficient equity alone. More combinations are expected in the months ahead, with smaller lenders likely to be folded into stronger franchises as the recapitalisation deadline approaches.

This trend mirrors the 2005 consolidation era, which trimmed 89 banks down to 25, ushering in a new era of scale and scrutiny. The 2024-2026 recapitalisation may well repeat history, producing fewer but sturdier players, banks large enough to finance Nigeria’s economic transformation.

But history offers a warning that recapitalisation is not reform. Bigger balance sheets may shield banks from global shocks, but they do not guarantee developmental relevance. Unless the philosophy of Nigerian banking itself changes from profit-first to purpose-driven intermediation, the sector will keep producing “giant banks in a fragile economy.”

The real challenge is not size, but substance. Nigeria doesn’t just need bigger banks; it needs better banks. It needs institutions that see SMEs as partners rather than liabilities, that lend to real producers rather than recycle deposits into government securities. It needs lenders that adopt fintech-driven underwriting, regulators that reward productive lending, and policymakers that create the infrastructure, power, and security needed to make risk-taking viable.

Recapitalisation, in this light, should not be seen merely as a regulatory hurdle but as a mirror reflecting both the success and the shame of Nigeria’s banking system. The trillion-naira profits may have dazzled investors, but the scramble for new capital reveals the truth that the sector’s foundations remain fragile, its governance inconsistent, and its contribution to real economic development still limited.

The CBN’s policy, painful as it may be, is a necessary reality check. It forces banks to prove that their wealth is more than paper-deep and that their balance sheets can support Nigeria’s ambitious $1 trillion economy vision. For investors and depositors, it is a wake-up call that what glitters in the financial statements may not always be gold.

In the end, recapitalisation is not just about raising funds; it is about restoring credibility. Because trust, once eroded by profit manipulation and corporate posturing, takes far more than a balance sheet to rebuild.

Blaise, a journalist and PR professional writes from Lagos, can be reached via: bl***********@***il.com

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Destination Ekiti: Two Elections, One Lesson in Vision

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welcome to Ekiti

By Oludayo Oludee Olorunfemi

A couple of months ago, my principal, Mrs Oyinkansola Badejo-Okusanya (SAN), was scheduled to travel from Lagos to Akure for an interactive meeting as part of her consultation process before contesting for the office of President of the Nigerian Bar Association (NBA). Today, she stands cleared to contest the election; the ban on campaigning has been lifted, with elections scheduled for 20 July 2026. However, this is not the central story. What stays with me from that trip is an unexpected lesson in leadership, vision, and the power of deliberate planning. It is a lesson that has become even more relevant as Ekiti State prepares for its governorship election on 20 June 2026, exactly one month before the NBA election. Two elections. Two different constituencies. Two different ballots. Yet remarkably similar questions before the voters.

Who has the vision? Who has done the work? Who has demonstrated the capacity to build for the future rather than merely campaign for the present? The journey began with a logistical challenge. The available flight from Lagos to Akure was scheduled for later in the day and would not get the team to Ondo State in time for a series of engagements planned across Akure, Owo, and Ondo Town.

During discussions on the best alternative, I suggested that we fly into Ekiti through the newly commissioned Ekiti Agro-Allied International Airport. The plan was simple: arrive early in Ado-Ekiti, make strategic visits to leaders of the Bar within the State, and then proceed by road to Akure for the scheduled meetings. What none of us anticipated was that Ekiti itself would become the story. Our first stop was a courtesy visit to Aare Afe Babalola, SAN, founder of Afe Babalola University, Ado-Ekiti. The purpose was straightforward: seek Baba’s blessings for the journey ahead. As always, a visit to Aare Afe Babalola became a masterclass. Drawing from over ninety years of experience, he spoke about governance, leadership, the legal profession, and nation-building. Listening to him, one could not help but reflect on the legacy. Across the South-West, the Aare Afe Babalola Bar Centres stand as visible reminders that impactful leadership is measured not by promises made but by institutions built.

As we continued our visits across Ekiti, someone suggested we stop by the Ekiti State Bureau of Tourism, headed by the energetic lawyer and tourism advocate, Mr Wale Ojo-Lanre. That unplanned detour became the highlight of the trip. The welcome was unmistakably Ekiti, warm, thoughtful, and rich in culture. Before we entered, we observed the symbolic knocking on the traditional drum suspended at the entrance. Then came the recitation of Mrs Badejo-Okusanya’s oriki as an Egba woman, evidence that our hosts had taken time to learn about their distinguished guest before our arrival. It was a small gesture, but one that reflected a larger truth about Ekiti, a people deeply connected to their culture, history, and identity. What followed was even more enlightening.

Officials of the Bureau took us through the various tourism assets of the state and presented the Ekiti State Tourism Development Master Plan (2025–2035). As a proud daughter of Ekiti, I listened with a sense of pride and optimism. The vision was clear. Tourism was no longer being treated as an afterthought but as a strategic economic pillar. Through public-private partnerships, destination governance, infrastructure development, cultural and eco-tourism innovation, enhanced security, asset development, and community empowerment, the state is seeking to position itself as a destination of choice. What impressed me most was the coherence of the plan. Too often, governments commission projects without building ecosystems. What we saw in Ekiti was different. It was a deliberate attempt to connect infrastructure, policy, investment, culture, and people into a sustainable tourism economy. It was the kind of long-term thinking that separates administration from leadership.

The next day, after completing our engagements in Ondo State, on our way back to catch our return flight, we stopped at Ikogosi Warm Springs Resort. Some places are beautiful. Others are transformative. Ikogosi belongs firmly in the second category. Listening to Madam Ruth, our tour guide, narrate the history of the springs, watching warm and cold waters continuously flow side by side, placing one foot in each stream, and observing the famous intertwined trees thriving together despite their differences, one could not help but marvel at nature’s wisdom. Different streams. One destination. Different identities. Shared purpose. The carefully curated pathways, the serenity of the environment, the chorus of birdsong, and the pristine landscape created a profound sense of peace. By the time we left, the verdict from everyone on the team was unanimous: we will be back. GO SEE IKOGOSI.

Ekiti is sitting on immense tourism potential. Not potential that exists only in policy documents or political speeches, but real, tangible, marketable potential. From Ikogosi to Arinta Waterfalls, to Mount of Clouds, to Olosunta Hills; from cultural festivals to ecotourism sites, from its rich history to its emerging infrastructure, Ekiti possesses many of the ingredients required to become one of Nigeria’s premier tourism destinations. What remains essential is sustained leadership and the courage to pursue a vision beyond electoral cycles. Perhaps that is why the coincidence of the election dates feels significant. On 20 June, the people of Ekiti will evaluate the leadership before them and determine the future direction of their state. One month later, on 20 July, lawyers across Nigeria will make a similar decision about the future of their association. The parallels are difficult to ignore.

In Ekiti, Governor Biodun Oyebanji has built a reputation for quiet but purposeful governance. Rather than chasing headlines, his administration appears focused on laying foundations in infrastructure, agriculture, education, and tourism that will yield benefits long after the politics of the moment have passed. In the NBA, Oyinkansola Badejo-Okusanya (SAN) presents a similar proposition. Her aspiration has been defined by consultation, engagement, bridge-building, and a vision of a bar that is inclusive, progressive, and institution-focused. Both represent a leadership philosophy that values preparation over performance. Both understand that sustainable progress requires patience. Both appear committed to building structures and a legacy of service that will outlive them.

As we departed Ekiti that evening, we left with more than memories of a successful consultation trip. We left with a renewed appreciation for what thoughtful leadership can accomplish. We left with fresh ideas. We left inspired by the possibilities that exist when vision is matched with execution. Most importantly, we left convinced that Ekiti’s tourism story is only beginning to be told. Destination Ekiti is more than a slogan. In the month that separates 20 June from 20 July, voters in Ekiti and lawyers across Nigeria will be asked essentially the same question: Do we reward those who merely speak about the future, or those who are deliberately building it? For Ekiti, for the NBA, and for all who believe in the power of institutions, the answer should be a BOLD Yes!

Oludayo Oludee Olorunfemi, a lawyer, writes from Ward 10, Idemo Quarters of Oke Aiyedun Ekiti, Ajoni LCDA.

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Why Most Nigerians Are Losing Money by “Saving” It

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Saving Your Money

By Izekeo Adegoke

Somewhere in Nigeria right now, a diligent, financially responsible person is watching their savings grow, and losing money at the same time. They do not know it. Their bank balance is rising. Their statement looks healthy. But in real terms, their wealth is quietly and consistently shrinking.

This is not a fringe scenario. It describes the financial situation of millions of Nigerians who are doing everything they were taught.

The gap nobody talks about

Here is the arithmetic that changes the conversation.

The average Nigerian savings account yields between 2% and 4% per annum. Nigeria’s inflation rate, as of recent Central Bank data, sits at approximately 15.69%. That means if you have ₦1 million in a savings account today, it will nominally become ₦1,030,000 in a year, but the real purchasing power of that money will have fallen to the equivalent of roughly ₦790,000 in today’s terms. You saved diligently. You lost ₦210,000 in purchasing power.

This is what economists call negative real returns, and it is the financial reality for the majority of Nigerian savers right now. The distinction between keeping money safe and making money grow has never mattered more than it does in this macroeconomic environment.

Why the savings instinct made sense and no longer does

The preference for savings accounts is not irrational. It is inherited. A generation of Nigerians was raised during periods of significant economic volatility, bank failures, currency devaluations, and frozen accounts. Saving in a regulated institution felt like the responsible, conservative choice. The alternative, markets, stocks, and funds, felt speculative and risky.

That instinct made sense in its context. But the financial landscape has changed materially, and the definition of “safe” needs to catch up.

A savings account today is not a low-risk option. It is a guaranteed negative return dressed in conservative language. The risk is not that you will lose your capital in nominal terms. The risk is that your capital will progressively lose its ability to buy things, fund a retirement, educate children, or build the future you are working toward. That is a real loss, even if your statement does not show it.

The behaviour-change that changes everything

The shift from saving to investing is not about abandoning caution. It is about directing caution more effectively. A diversified investment portfolio spread across fixed income instruments, equities, dollar-denominated assets, and alternative holdings does not eliminate risk. It manages it intelligently, and in doing so, gives your money a fighting chance against inflation.

Consider a ₦1 million portfolio invested across a balanced mix of Nigerian equities and fixed income instruments targeting a 15–18% annual return. Over three years, compounding and market participation could bring that to approximately ₦1.5–1.6 million in nominal terms and, depending on portfolio construction, meaningfully above the inflation rate in real terms. The savings account brings you to ₦1.09 million, having lost ground every single year.

The numbers are not subtle. They are decisive.

Coronation Wealth’s answer to the problem

This is precisely the problem Coronation Wealth was built to solve. Our platforms give individuals access to professionally managed, diversified portfolios across multiple asset classes, including dollar-denominated instruments that provide a structural hedge against naira depreciation. These are not products previously available only to institutional clients or high-net-worth individuals. They are accessible, clearly structured, and designed for people who want their money working as hard as they do. Wealth creation, as we understand it, is not about spectacular bets. It is about making consistent, informed decisions over time with the right tools, the right structure, and a partner who understands the environment in which you operate.

The reframe you need

Safety is not a function of where your money sits. It is a function of what your money does.

A savings account feels safe because the number never goes down. But if that number cannot keep pace with the cost of living, the cost of education, the cost of the future, it is not protecting you. It gives you the illusion of security while inflation quietly does its work.

The most dangerous financial decision most Nigerians are making right now is not taking too much risk. It is the decision to play it safe, and that is precisely why it needs to change.

Izekeo Adegoke is the Chief Digital Officer at Coronation Wealth, the digital investment and wealth management subsidiary of the Coronation Group in Nigeria. 

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This Is Not the Season to Miss Anything (Because the Internet Will Not Wait for You)

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DStv and GOtv

There were times when entertainment moved slowly enough that you could catch up later without missing much. This is not one of those times. Right now, everything is happening at once, and if you blink, the internet will already summarise it for you in a version that may not even be fully accurate.

We are in a phase where the moment a show, movie, or reality series airs, clips are already circulating online before many people have watched the full episode. Opinions are formed from short edits, screenshots, and snippets rather than the full context, and conversations often take shape around what has been clipped and shared instead of what actually happened in real time. The ongoing BBNaija Reunion is a clear example of this, with viral moments driving debates and narratives long before many viewers have seen the complete exchange.

And it is not just Big Brother.

The World Cup is literally here, and you already know what that means. Most of the matches are played deep into the night, so many people will wake up to scores they didn’t watch live, scroll cautiously through social media trying to avoid spoilers, or quickly hunt for highlights before someone ruins the result in a group chat or on X. Somehow, everyone will still be expected to join the “did you see that match?” conversation the next morning as if they were awake through every minute of it.

This is the reality of modern viewing: nobody is waiting for you anymore. The funny part is what people do when they miss it. You will see someone on X asking, “abeg who has the link to watch last night’s episode?” and within minutes, replies start flying. Somebody drops a Telegram channel like it is normal, another person shares a random website link, and another group is already posting 30-second clips with captions like “full gist inside” as if that is the full experience.

Before you know it, people are no longer watching the show. They are watching fragments, then opinions, then blog interpretations, then X reactions. And somehow that becomes the version of events that spreads fastest.

That is where the problem starts. Social media does not give context. It gives highlights. Blogs chase clicks, not full stories. Even viral clips in group chats are usually missing the build-up that actually explains why people reacted the way they did.

So, you find yourself arguing passionately about something you did not fully watch. You are forming opinions from “see finish” clips and half-context screenshots. And when you finally watch the full episode later, everything suddenly makes more sense than the version you were dragged into online.

That is why access is becoming more important than ever. Not just access to content, but access to it in real time. Because nothing really hits like watching it live, as it unfolds, with everyone reacting at the same moment. Whether it is a last-minute World Cup goal, a heated reunion moment, or something that instantly becomes meme history, the experience is always different when you are actually there for it.

And this is exactly where viewing has changed. People are no longer tied to one screen in the sitting room. Life does not even allow that anymore. You might be in traffic, at work, outside, or simply away from your decoder when something important is happening, which used to mean you missed your favourite show; now you don’t have to.

Because platforms like DStv and GOtv now let you stay connected even when you are not in front of your television. So instead of chasing Telegram links that may or may not work, which is piracy by the way, or waiting for someone to “summarise what happened,” you can actually watch it yourself.

You can still stay connected using the MyDStv or GOtv Stream app. It is simple. Download the app from your store, log in with your account details, ensure your subscription is active, then head to the Live TV section and select the channel you want. In a few taps, you are back inside the moment everyone is talking about.

And honestly, that is what this season demands. Between Big Brother conversations taking over timelines, new reality TV seasons building buzz, and the World Cup about to dominate every screen in the next few days, this is not the time to be disconnected. Not even the time to say “I’ll catch up later”, because later is exactly where spoilers live now.

So, whether you are watching from your decoder at home or streaming from your phone on the move, the point is the same: you are not out of the conversation. Because in today’s world, missing the show is one thing.

Missing the moment everyone is talking about? That one is harder to recover from.

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