Nigeria banking recapitalisation mobilises N4.65 trillion

Five months after the Central Bank of Nigeria (CBN) concluded its banking recapitalisation window, the industry has mobilized approximately N4.65 trillion in fresh capital. While 33 banks have reportedly met the new minimum capital requirements, questions remain regarding whether this capital is being used to support the broader Nigerian economy or primarily to bolster bank profits.

Financial reports indicate significant profit growth among several institutions. First HoldCo reported a profit before tax of N653.54 billion in H1 2026, an 83.5 percent increase from the previous year. Wema Bank also showed growth, reporting gross earnings of N415.09 billion and a 21.73 percent increase in loans and advances during the first half of the year.

Additionally, four mid-tier banking groups—FCMB, Wema, Sterling Financial Holdings, and Ecobank Transnational—recorded a combined after-tax profit of N730.2 billion in H1 2026, up from N636.4 billion in the prior year. While these figures demonstrate increased capitalization and profitability, the central debate focuses on whether these stronger institutions are fulfilling the reform's objective to finance larger transactions and drive national productivity.