CBN has granted Union Bank, Polaris, and Keystone extra time to meet recapitalisation requirements.
NewsOnline Nigeria reports that the Central Bank of Nigeria (CBN) has reportedly granted Union Bank, Polaris Bank and Keystone Bank an additional three weeks to complete their recapitalisation processes following the expiration of the March 31, 2026 deadline for banks to meet new capital requirements.
Sources familiar with the development disclosed that the apex bank approved a special regulatory window for the three lenders, which remain under intervention management, to finalise outstanding aspects of their capital-raising plans.
ALSO: US Congress Takes Fresh Action On Nnamdi Kanu’s Conviction
According to industry sources, the extension was necessitated by unique legal and regulatory challenges facing the affected institutions, including ownership disputes and ongoing court cases that have complicated their recapitalisation efforts.
Under the CBN’s banking sector recapitalisation programme, commercial banks with national licences are required to maintain a minimum capital base of N200 billion, while banks with international licences must have N500 billion. Regional banks are required to maintain N50 billion.
The three banks are estimated to require at least N350 billion collectively to retain their national banking licences under the revised framework.
Sources indicated that Union Bank, Polaris Bank and Keystone Bank are exploring multiple options to meet the requirements, including fresh capital injections from investors, mergers and acquisitions, licence restructuring, and other strategic alternatives. However, the banks are said to favour standalone recapitalisation plans.
They also retain the option of converting to regional banking licences, which carry significantly lower capital requirements.
The latest development comes amid lingering regulatory and legal issues surrounding the institutions. In January 2024, the CBN dissolved the boards and management of the three banks, citing regulatory breaches, corporate governance failures and violations of conditions attached to their operating licences.
The apex bank had maintained that the actions were necessary to safeguard financial stability and enforce compliance with provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.
Union Bank’s ownership structure has also been the subject of legal disputes. Former shareholders recently secured a Federal High Court judgment nullifying the bank’s takeover by the CBN, although the apex bank has since appealed the decision.
At the conclusion of the banking recapitalisation exercise in March, the CBN announced that 33 banks successfully met the new minimum capital requirements.
The regulator disclosed that Nigerian banks raised approximately N4.65 trillion during the 24-month recapitalisation programme, with domestic investors accounting for 72.55 per cent of the funds and foreign investors contributing 27.45 per cent.
While celebrating the outcome, the CBN acknowledged that a limited number of institutions remained subject to ongoing regulatory and judicial processes, which it said were being addressed through established supervisory mechanisms.
CBN Governor Olayemi Cardoso had previously assured customers and stakeholders that Union Bank, Polaris Bank and Keystone Bank remain safe, stable and fully operational, adding that the apex bank would continue supporting efforts to resolve outstanding legal and regulatory issues while preserving confidence in the financial system.
