According to a recent Proshare publication, only two major Nigerian banks — Zenith Bank and Access Holdings Plc — have exceeded the Central Bank of Nigeria’s N500 billion benchmark for share capital and premium, a requirement for banks with international licences.
Titled ‘Tier 1 Banks Report: Getting Bigger, Braver, and Dominant – The Class of 2025’, the analysis reveals that Zenith Bank currently holds the lead with a combined share capital and premium of N614.65 billion, while Access Holdings follows closely with N594.90 billion. Other major players such as Ecobank Transnational Incorporated and Guaranty Trust Holding Company have not yet crossed the threshold, with N353.51 billion and N345.30 billion, respectively.
“All Tier 1 banks are licensed for international operations. However, tier 1 borderline banks (the highest-ranked tier 2 banks) have also chosen to achieve N500bn share capital to compete aggressively in the emerging global and continental banking markets,” the report stated.
The report also highlights an evolving power structure in the banking industry. ETI, previously behind Zenith Bank, now leads the Tier 1 category due to a remarkable 67.11% surge in assets, largely attributed to its strong performance in francophone West Africa.
Despite being recently hit by a Supreme Court ruling to pay N225 billion — linked to its past acquisition of FSB International Bank — Fidelity Bank is projected to rejoin the Tier 1 league by the close of the 2025 fiscal year. Analysts believe that if the bank handles the judgement’s impact wisely, it can still maintain sufficient liquidity.
Proshare experts also delved into the broader implications of the recapitalisation directive, particularly in light of evolving customer demands and emerging banking models.
“The recapitalisation of Nigerian banks is not new, but the era in which it is now happening is different,” the report noted. “The contemporary era is hinged on a shift in the needs of bank customers. It is more aligned with the transactional needs of customers for bespoke services.”
In addition, the study observed that while total assets have traditionally served as the main yardstick for bank rankings, current trends now emphasize asset growth as a key indicator of market movement. The banks leading in this metric include ETI (67.11%), Wema Bank (59.82%), FCMB (59.46%), FirstHoldco (56.60%), and AccessCorp (55.49%).
However, concerns were raised over rising levels of bad loans and an inefficient use of balance sheets across the Nigerian banking industry.
“While off-balance sheet transactions have grown exponentially globally, this type of banking operation remains relatively underutilised in Nigeria,” it added.
Although the current recapitalisation efforts may cause temporary dips in return on equity and capital utilization, the report maintains that the future remains promising as banks work to strengthen their capital bases and risk control systems.
Proshare’s analysts concluded that the Central Bank’s March 2026 deadline for recapitalisation is achievable, as most financial institutions are making steady progress — though a few are still falling behind.
