Nigeria’s Tier-2 (mid-tier) banks are scrambling to shore up their balance sheets as the Central Bank of Nigeria’s (CBN) March 2026 recapitalisation deadline looms, triggering what analysts expect to be the biggest wave of consolidation since the landmark reforms of 2004.
Tier-2 banks have smaller capital bases and more modest operations, yet play a vital role in the Nigerian financial system.
Under the new directive, international banks are required to raise their minimum paid-up capital to N500 billion, national banks to N200 billion and regional banks to N50 billion.
The order, announced in 2024, is designed to strengthen the sector’s resilience, attract foreign investment and position the industry to support Nigeria’s ambition of becoming a $1 trillion economy.
However, a report titled; Capital, Competition, and Consolidation: How Nigeria’s Tier-2 banks are responding to the CBN’s 2026 recapitalisation order by SBM Intelligence, a geopolitical research and consulting firm, revealed on Monday that pressure is mounting on tier-2 institutions amid record-breaking results from their larger tier-1 rivals.
