• Hausa Edition
  • Podcast
  • Conferences
  • LeVogue Magazine
  • Business News
  • Print Advert Rates
  • Online Advert Rates
  • Contact Us
Tuesday, August 26, 2025
Leadership Newspapers
Read in Hausa
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
Leadership Newspapers
No Result
View All Result

Recapitalisation: Mergers To Reduce Number Of Nigerian Banks Soon – ARM

...As NACCIMA warns of hyperinflation, negative implications

by Bukola Aro-Lambo
1 year ago
in Business
Mergers
Share on WhatsAppShare on FacebookShare on XTelegram

With nearly N3 trillion needed for banks in the country to meet the new minimum capital requirement as stipulated by the Central Bank of Nigeria (CBN) analysts have said the recapitalization exercise will see the reduction in the number of banks operating in Nigeria.

Advertisement

The CBN had given a two-year period for banks to meet a new capital base of N500 billion for international operations, N200 billion for national operations and N50 billion for regional operations and merchant banking licence.

In 2004, the Nigerian central bank last raised capital requirements, sparking a wave of mergers that reduced the number of commercial lenders from 89 to 25. Similar outcomes are anticipated with the current capital increase.

Currently, out of the 12 listed banks, only the Nigerian subsidiary of pan-African lender, Ecobank Nigeria Ltd does not have to raise capital to meet the new requirement. All other lenders have to seek new investors or ask existing shareholders to purchase fresh stock. There are a total of 25 commercial lenders in the country.

According to a breakdown by ARM, United Bank for Africa Plc faces the largest capital shortfall of N384 billion, while Stanbic IBTC, the Nigerian arm of South Africa’s Standard Bank Group, has the smallest gap at N90 billion.

RELATED

The Evolution Of Betting In Nigeria: A Journey Of Growth

How To Bet Smarter In 2025

4 hours ago
Malabu Oil: Abacha Family Wants Minister To Withdraw Claims On Court Cases

Global Oil & Gas Contracts Up By $7bn In Q2

9 hours ago
ADVERTISEMENT

According to Asset & Resource Management Co. (ARM) banking analyst Oyinkansola Aregbesola, there will be more marriages in the form of mergers and acquisitions for those who are not able to raise the additional capital required. “We will definitely see a reduction in the number of banks. The tier two banks and the smaller entities will likely consider mergers if they can’t individually raise the capital on their own,” she said.

Professor of Law and developmental economist Tayo Bello, whilst noting that the recapitalization exercise for banks is already long overdue, considering the devaluation of the naira noted that many banks will not be able to survive the recapitalisation.

“Not all of them will be able to cross the hurdle. When Soludo brought up the recapitalisation exercise then, I think the number of banks in the economy was more than 50 then, before they were reduced to 20. So, this one, I can predict maybe they will come down to 15 or above that.”

ADVERTISEMENT

Rating agency Moody’s Investor Service noted that the new capital requirement will lead to a consolidation in the Nigerian banking sector.

saying “We expect that the new regulations will drive significant consolidation within the sector, particularly where it is not feasible for banks to raise the required capital.

“The exclusion of retained earnings from qualifying capital may complicate recapitalization plans, “ the rating agency said, adding that the enhanced capital requirements are credit positive for the banking sector.

It furthered that banks “will benefit from a stronger balance sheet and the ability to grow their loan books while absorbing any unexpected credit loss.”


Join Our WhatsApp Channel

Nigerians can now earn US Dollars monthly by acquiring domains cheaply and reselling for profits up to $18,000 (nearly ₦30Million). Beneficiaries include professionals, entrepreneurs, civil servants and more. Click here to start.


SendShare10340Tweet6463Share
ADVERTISEMENT
Previous Post

Current Global Billionaires Under 30 Inherited Wealth – Forbes

Next Post

Sahara Group Strengthens Security In FCT

Bukola Aro-Lambo

Bukola Aro-Lambo

You May Like

The Evolution Of Betting In Nigeria: A Journey Of Growth
Business

How To Bet Smarter In 2025

2025/08/26
Malabu Oil: Abacha Family Wants Minister To Withdraw Claims On Court Cases
Business

Global Oil & Gas Contracts Up By $7bn In Q2

2025/08/26
Fadaella Foods To Capture Nigerian Market With New Products
Business

Fadaella Foods To Capture Nigerian Market With New Products

2025/08/26
Africa Prudential Records 75% PBT Growth, N41.35bn Assets In H1
Business

Africa Prudential Records 75% PBT Growth, N41.35bn Assets In H1

2025/08/26
FG, Imo, NDPHC Seek Speedy Completion Of Egbema Power Plant
Business

Kano Manufacturers Engage NDPHC On Direct Power Supply

2025/08/26
Insurance Firms Begin Self-prescribed Recapitalisation As Minimum Capital Controversy Rages
Business

New Law Offers N2m Medical Compensation For Uninsured Accident Victims

2025/08/26
Leadership Conference advertisement

LATEST

UNILORIN Lecturers Stage Protest, Demand Implementation Of 2009 Agreement 

PICTORIAL: NEMA Boss Leads Rescue Mission To Site Of Abuja–Kaduna Train Derailment

FCTA Promotes 49 Deputy Directors

Derailed Train: Kaduna Gov Orders Evacuation, Treatment Of Victims

Edo Hospital Denies Complicity In Death Of Twin Babies

Delta Police Arrest Officers Caught On Video Counting Cash In Patrol Van

Abuja Excavation Site Wall Collapses, Kills Labourer

Gov Buni Flags Off 2025 Tree Planting Campaign

JUST-IN: 6 Persons Injured As NSIB Begins Probe Of Abuja–Kaduna Train Derailment

Drama As Benue Assembly Suspends Ex-Speaker Dajoh Over ‘Plot’ To Impeach Gov Alia

© 2025 Leadership Media Group - All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us

© 2025 Leadership Media Group - All Rights Reserved.