Zenith, Access Surpass CBN’s ₦500bn Recapitalisation Benchmark – Report

Only two Nigerian Tier-1 banks — Zenith Bank Plc and Access Holdings Plc — have successfully surpassed the ₦500 billion recapitalisation benchmark set by the Central Bank of Nigeria (CBN) for institutions with international licenses, according to a new report by Proshare.

The report, titled “Tier 1 Banks Report: Getting Bigger, Braver, and Dominant – The Class of 2025,” reveals that Zenith Bank leads the pack with a combined share capital and share premium of ₦614.65 billion. Access Holdings follows closely with ₦594.90 billion.

Other major players such as Ecobank Transnational Incorporated (ETI) and Guaranty Trust Holding Company (GTCO) remain below the target, with ₦353.51 billion and ₦345.30 billion respectively.

“All Tier-1 banks in Nigeria hold international licenses, but even some upper-tier Tier-2 banks are now pursuing the ₦500 billion target in a bid to remain competitive on the African continent,” the report noted.

Despite Zenith’s lead in capital structure, Ecobank has emerged as the top bank by asset size, driven largely by a significant 67.11% year-on-year asset growth. The growth, the report said, is attributed to the bank’s expanding operations in Francophone West Africa.

The report also anticipates a resurgence for Fidelity Bank, which could reclaim Tier-1 status by the end of the 2025 financial year. This is despite a ₦225 billion liability stemming from a Supreme Court ruling linked to its acquisition of the defunct FSB International Bank. Proshare analysts believe that with prudent financial management, Fidelity can maintain adequate liquidity and meet its obligations.

Proshare’s analysis further highlights a changing banking landscape driven by evolving customer demands, asset growth, and digital transformation.

“The recapitalisation of Nigerian banks is not a new phenomenon, but it is happening in a dramatically different era — one defined by customer demand for more personalised and technology-driven banking services,” the report stated.

In terms of asset growth, the report ranks the top five banks as:

1. Ecobank (ETI) – 67.11%

2. Wema Bank – 59.82%

3. FCMB – 59.46%

4. First Bank Holdings (FirstHoldco) – 56.60%

5. Access Holdings (AccessCorp) – 55.49%

However, the report raised concerns about rising non-performing loans and underutilised balance sheet tools within the sector. It noted that while off-balance sheet financing is a global trend, its application remains limited in Nigeria.

Despite short-term challenges, Proshare projects a positive long-term outlook for the Nigerian banking sector, especially as institutions work to enhance capital adequacy and risk management frameworks in line with the CBN’s recapitalisation directive. The recapitalisation deadline remains set for March 2026, and most banks are said to be making substantial progress, though a few continue to lag behind.