Investor fatigue and fresh competition from the insurance industry have further strained fundraising efforts, leaving several lenders uncertain about their survival.
With just six months to the Central Bank of Nigeria’s March 2026 recapitalisation deadline, over 10 mid-tier and smaller banks risk forced mergers or liquidation as they struggle to meet new capital thresholds. Investor fatigue and fresh competition from the insurance industry have further strained fundraising efforts, leaving several lenders uncertain about their survival.
Talks on mergers and acquisitions have also stalled, with disagreements over corporate governance, risk appetite, and disclosure of liabilities creating bottlenecks. “A last-minute merger option may leave partners with little or no time to investigate outstanding commitments that could pose substantial risks,” a source told The Guardian.
While eight banks have already met the requirement, others remain “neck-deep in fundraising,” according to CBN Governor Yemi Cardoso. The situation is compounded by the Nigerian Insurance Industry Reform Act, which has shifted investor interest toward insurers, driving stock gains of over 60 percent in two weeks.
Economist Godwin Owoh warned recapitalisation mainly opens doors for politicians “to launder stolen money in the guise of investment.”