The Central Bank of Nigeria (CBN) has reportedly granted three banks Union Bank, Polaris Bank and Keystone Bank—additional time to complete their recapitalisation process following the expiration of the industry-wide deadline.
The extension comes after the apex bank concluded its banking sector recapitalisation programme, which required financial institutions to meet new minimum capital thresholds aimed at strengthening the Nigerian financial system and improving the capacity of banks to support economic growth. The original deadline for compliance was March 31, 2026.
According to reports, the CBN has given the three lenders a special regulatory window of about three weeks to finalise their recapitalisation plans. The banks are said to have received the concession due to unique legal, regulatory and operational circumstances surrounding their ownership and restructuring processes.
Industry sources disclosed that while virtually all other banks met the recapitalisation requirements before the deadline, Union Bank, Polaris Bank and Keystone Bank were allowed additional time to conclude ongoing arrangements and secure the necessary approvals.
The recapitalisation exercise, introduced by the CBN in 2024, significantly increased the minimum capital requirements for banks. Under the policy, international commercial banks are required to maintain a minimum capital base of ₦500 billion, while national banks must have at least ₦200 billion and regional banks ₦50 billion.
CBN Governor Olayemi Cardoso had previously stated that the initiative was designed to build stronger and more resilient financial institutions capable of supporting Nigeria’s economic ambitions. The programme also encouraged banks to raise fresh capital through public offers, rights issues, private placements, mergers and acquisitions.
Reports indicate that the three affected banks require significant capital injections to comfortably retain their banking licences under the new regulatory framework. However, the temporary extension is expected to provide sufficient time for them to complete outstanding processes and align fully with the CBN’s requirements.
The development means Union Bank, Polaris Bank and Keystone Bank now have until approximately late June 2026 to conclude their recapitalisation efforts and satisfy the apex bank’s conditions.
As the banking sector adjusts to the new capital regime, analysts believe the recapitalisation exercise will result in a stronger, more competitive and better-capitalised financial industry capable of withstanding economic shocks and financing larger projects across the country.
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