Nigeria banking sector faces scrutiny over recapitalisation and international earnings

Nigeria’s banking industry is navigating a period of significant structural change following a Central Bank recapitalisation exercise that injected N4.65 trillion in equity. By March 2026, 33 of the country’s 37 banks had met the updated capital requirements, intended to improve systemic resilience and financing capacity.

Major institutions such as Access Holdings Plc and United Bank for Africa Plc (UBA) are leveraging extensive international operations to drive growth. The depreciation of the naira in 2023 and 2024 has increased the naira value of these banks' foreign assets and earnings, though this creates a paradox where currency movements can enhance asset value while complicating regulatory compliance regarding investment limits.

Despite increased capital, questions remain regarding the link between banking strength and broader economic prosperity. Analysts are examining whether this financial capacity is being converted into productive credit for businesses, job creation, and export expansion, rather than merely strengthening balance sheets. Benchmarks from regional peers like Attijariwafa Bank, Equity Group Holdings, and Ecobank are being used to assess the effectiveness of Nigeria’s reforms in delivering real economic value.