CBN Grants Three Banks Three-Week Extension on Recapitalisation
By Aboki Forex —
The Central Bank of Nigeria has given Union Bank, Polaris Bank, and Keystone Bank an additional three weeks to complete their recapitalisation plans. Sources familiar with the matter confirmed the extension on Tuesday.
The three banks are currently under regulatory management. They have been exploring options to meet the new capital requirements. These options include raising fresh capital from private investors and pursuing mergers or acquisitions.
The industry-wide recapitalisation deadline ended on March 31, 2026. The CBN said 33 banks successfully met the deadline, raising a total of N4.65 trillion in new capital. However, the regulator considered the unique legal and regulatory challenges facing the three banks before granting the concession.
Legal disputes complicate the process
The three banks have been under CBN intervention since January 2024. The apex bank dissolved their boards and management teams over alleged violations of the Banks and Other Financial Institutions Act 2020. The regulator cited regulatory breaches, weak corporate governance, and activities threatening financial system stability.
Ongoing legal disputes have further complicated matters. In the case of Union Bank, former owners recently secured a Federal High Court judgment nullifying the CBN’s takeover. The central bank has appealed the ruling.
Analysts estimate that Union Bank, Polaris Bank, and Keystone Bank collectively need more than N350 billion to retain their national banking licences. Under the revised capital framework, commercial banks with national licences must maintain a minimum share capital and share premium of N200 billion.
The banks also have the option of converting to regional banking licences. Those licences carry a lower minimum capital requirement of N50 billion.
CBN Governor Olayemi Cardoso recently assured stakeholders that the three banks remain fully operational. He said the regulator would continue supporting efforts to resolve their legal and regulatory challenges while safeguarding financial system stability.