Tier-2 Banks Under Pressure as CBN’s 2026 Deadline Looms

Nigeria’s banking sector is gearing up for its biggest shake-up since the 2005 consolidation. The Central Bank of Nigeria (CBN) has set a March 2026 recapitalisation deadline — and for Tier-2 banks, the race to scale up or merge is officially on.

Here’s the fast breakdown ⬇️

1. The New Capital Rules

International banks → ₦500bn minimum

National banks → ₦200bn

Regional banks → ₦50bn The goal? A stronger financial system that can backstop the government’s dream of a $1 trillion economy.

2. The Big Tier-2 Players

SB Morgen’s latest report zooms in on FCMB, Fidelity, Stanbic IBTC, Sterling, and Wema Bank.

These aren’t Tier-1 giants, but they’ve been quietly outperforming expectations on the NGX over the past 5 years.

3. Fidelity Leads the Pack

From ₦1.65 in 2020 → ₦21.20 in mid-2025

That’s an eye-popping 1,100% return in 5 years

Driven by digital expansion, strong earnings, and bold capital raises

4. Wema’s Digital Play

From ₦1.50 in 2020 → almost ₦15.00 in 2025

Proof that digital-first strategy = growth

5. FCMB & Sterling: Slow But Steady

FCMB: ₦3.33 (2020) → ₦9.25 (2025)

Sterling: ₦1.70 (2020) → ₦6.16 (2025) Both have leaned on retail, SME, and disciplined asset quality to deliver consistent gains.

6. How They’re Raising Capital

FCMB → ₦400bn in phases (public offer, divestments, offshore placements)

Fidelity → Already raised ₦270bn, moving fast toward the ₦500bn mark

Sterling → Multi-stage rights issues + $400m public offer coming

Wema → ₦150bn rights issue + ₦50bn private placement after a ₦40bn raise

7. What’s Next?

Expect mergers and alliances as 2026 approaches

Tier-2 banks that fail to scale risk getting swallowed by bigger rivals

Winners will be those who embrace tech, raise capital boldly, and diversify income

✅ Investor Takeaway

Tier-2 banks aren’t just fighting for survival — they’re proving they can outperform, adapt, and grow even under pressure. For investors, the recapitalisation push could separate the future stars from the merger targets.

Anonymous

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Tier-2 Banks Under Pressure as CBN’s 2026 Deadline Looms

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