Three Nigerian banks – Wema Bank, Polaris Bank, and Keystone Bank – are reportedly exploring merger and acquisition opportunities as the banking sector’s recapitalization deadline approaches. This development comes amid a broader industry-wide effort to meet the Central Bank of Nigeria’s (CBN) new capital requirements announced in March 2024.
New Capital Requirements
- International banks: N500 billion
- National banks: N200 billion
- Regional banks: N50 billion
- Non-interest banks: N20 billion (national), N10 billion (regional)
Successful Capital Raises So Far
Several banks have already completed their capital raising exercises:
- GTCO: N400.5 billion
- Access Holdings: N350.1 billion
- Zenith Bank: N289.1 billion
- Fidelity Bank: N127.1 billion
- FCMB Group: N110.9 billion
- Sterling Financial Holdings: Pursuing N153 billion (after securing $50 million via private placement)
Status of Banks Seeking Mergers
Wema Bank
- Current capital: N68 billion (as of September 2024)
- Target: N200 billion
- Strategy: Announced plans to raise N150 billion through rights issuance, public offer, and private placement by Q1 2025
- While focusing on independent capital raising, the bank is also considering potential merger discussions
Polaris Bank
- Current capital: Approximately N50 billion
- Seeking additional N150 billion
- Exploring merger options with CBN assistance following recent board changes
- Considering downgrading to regional bank status
Keystone Bank
- Close to N200 billion requirement for national license
- Recently underwent board and management changes
- Seeking merger opportunities to strengthen competitive position
Related Development: CBN Sanctions on Cash Distribution
In a separate development, the CBN has imposed N150 million fines on nine banks for failing to maintain adequate cash in their ATMs during the holiday season. The CBN emphasized its commitment to ensuring smooth cash circulation and warned of stricter penalties for future violations.
The banks were penalized for:
- Non-compliance with cash distribution guidelines
- Failing to maintain adequate ATM cash availability
- Violating operational requirements
Governor Olayemi Cardoso has warned that the CBN will continue monitoring cash distribution and take action against violations, including enforcing the N1.2 million daily withdrawal limit for POS operators.

Madukwe B. Nwabuisi is an accomplished journalist renown for his fearless reporting style and extensive expertise in the field. He is an investigative journalist, who has established himself as a kamikaze reporter.