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Moneyevent★ Pivotal · economic2024 — 2026· Chapter 202Series · Act VIII of 8

The Banks of the Republic — From the Marina to ₦500bn

Banks · Act VIII — The Cardoso Recapitalisation

On 28 March 2024 CBN Governor Olayemi Cardoso raises the minimum capital for international commercial banks to ₦500 billion. Twenty-four months to comply. Retained earnings don't count — only fresh equity does. The largest concentrated capital raise on the Nigerian Exchange begins.

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Nineteen years after Soludo, on 28 March 2024, the Central Bank under Governor Olayemi Cardoso announced the second great recapitalisation of the Nigerian banking system. Circular BSD/DIR/CON/GEN/01/006 set new minimum paid-up capital thresholds for every category of deposit-taking institution and gave the banks twenty-four months — until 31 March 2026 — to comply.

The new floors, by licence category, were: commercial bank with international authorisation, ₦500 billion; commercial bank with national authorisation, ₦200 billion; commercial bank with regional authorisation, ₦50 billion; merchant bank (national), ₦50 billion; non-interest bank (national), ₦20 billion; non-interest bank (regional), ₦10 billion. The Soludo-era floor of ₦25 billion had eroded — in dollar terms — from US$190 million in 2005 to under US$16 million by early 2024, after the cumulative naira depreciation of 2015, 2016, 2020, 2023 and 2024. The CBN explicitly framed the exercise as a restoration of real capital, not an increase in nominal terms.

A second feature distinguished the Cardoso recap from Soludo's. Banks were told they could not count retained earnings or revaluation reserves towards the new floor — only fresh equity (paid-up share capital plus share premium) would qualify. This forced even the largest banks to go to the market. Within the first nine months, eight of the country's largest tier-1 banks (Access Holdings, GTCO, Zenith, FBN Holdings, UBA, Fidelity, FCMB, Stanbic IBTC) had launched or completed rights issues, public offers or hybrid offers cumulatively raising over ₦3.6 trillion — at the time, the largest concentrated capital raise in the history of the NSE.

Unlike Soludo, Cardoso did not promise a 25-bank end-state. The expectation in the policy paper was that the twenty-five surviving commercial-bank licences of 2005 would consolidate further to roughly 15–18 banks by the deadline. Mergers began in 2025: the FBN Holdings / Access Bank exploratory talks, the Providus / Unity Bank announced merger (December 2024), the Premium Trust Bank acquisition of a tier-3 peer. The end-state is not yet written, but the architecture is. The naira floor of 2024 is, in real US-dollar terms, almost identical to the floor of 2005 — which is to say: forty years after the SAP-era licensing explosion, the Nigerian banking system has finally been re-anchored to the size of bank Nigeria's economy genuinely needs.

Figure 1

Licensed Nigerian banks, 1894–2024

Every regulatory cycle since 1952 has compressed the field. The 2005 Soludo consolidation cut ninety banks to twenty-five in eighteen months.

SourceCBN Annual Reports 1959–2024; Brown 1966, A History of Banking in Nigeria; NDIC Bank Distress reports.Last updated 2026-08-12

Figure 2

Minimum paid-up capital required to operate a bank, 1952–2024 (₦ million, log scale)

The regulatory bar has risen by seven orders of magnitude. Each step up has reset who is allowed to call themselves a Nigerian bank.

SourceBanking Ordinance 1952; CBN Decree 1969; BOFIA 1991; CBN circulars 1997, 2001, 2005, 2024.Last updated 2026-08-12

Era context

The political and economic reality

The government(s), economy and national reality across the period 2024–2026.

President · Fourth Republic

Sen. Bola Ahmed Tinubu

2023–present· APC

National reality

Fuel subsidy removed at inauguration (29 May 2023); naira floated June 2023. Inflation at multi-decade highs (>30% YoY in 2024). Student loan scheme (NELFUND) launched 2024. WAEC torchlight exam controversy (2025).

Crises of the period

  • Cost-of-living crisis 2023–25
  • WAEC torchlight examinations (2025)
  • JAMB CBT technical failures (2025)
  • Naira free-fall 2023–24

GDP (World Bank)

≈ $363 bn (2023, post-float)

Cabinet (selected portfolios)

  • Finance

    Wale Edun (Coordinating Minister of the Economy)

  • Justice (AGF)

    Lateef Fagbemi (SAN)

  • Education

    Tahir Mamman (2023–24); Tunji Alausa (2024– )

Sources · Federal Gazette 2023– · CBN · NBS

The Banks of the Republic — From the Marina to ₦500bn · Act VIII of 8

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Methodology

Tier 1 · primary

Courts. Gazettes. National archives.

Tier 2 · corroborating

OCCRP. HRW. BudgIT. TheCable.

Tier 4 · tertiary, flagged

Wikipedia only where primary is pending. Always labelled.