The Central Bank of Nigeria (CBN)cbThe Central Bank of Nigeria (CBN) says it is confident that Keystone Bank, Polaris Bank and Union Bank will meet recapitalisation requirements ahead of the programme’s March 31, 2026 deadline, as its sector-wide exercise continues to gather pace.
A senior CBN official told New Telegraph that all three banks are making “significant progress” toward the deadline and that the apex bank is closely monitoring compliance across the industry.
“We are satisfied that the exercise is proceeding well,” the official said. “A major reason for this recapitalisation programme is to make sure that the banks are well capitalised to withstand shocks and be in the position to play their key role of helping the country achieve its $1 trillion economy goal. So the CBN will support all banks to make the exercise a success.”
The official added that Keystone Bank is likely to be the first of the three to complete its recapitalisation after recent court action resolved questions over its ownership. In February this year, the Lagos State High Court, Ikeja, ordered the forfeiture of shares previously held by Keystone’s former shareholders in favour of the Federal Government following litigation brought by the Federal Government through the Economic and Financial Crimes Commission (EFCC).
The recapitalisation drive has already prompted direct intervention from the apex bank. On January 10 last year, the CBN dissolved the boards and managements of Union Bank, Keystone Bank and Polaris Bank and installed new leadership, citing breaches of the Banks and Other Financial Institutions Act, 2020. The CBN said the banks’ infractions ranged from regulatory non-compliance and corporate governance failures to actions that threatened financial stability.
Polaris Bank’s ownership was resolved earlier: the CBN and the Asset Management Company of Nigeria (AMCON) sold the lender to Strategic Capital Investment Limited (SCIL) in October 2022. SCIL paid N50 billion upfront for 100% equity and assumed responsibility for the N1.305 trillion AMCON debt, to be repaid over a 25-year period.
Union Bank was acquired by Titan Trust Bank in June 2022. Sources told New Telegraph that Union — rather than its buyer — is likely to be the surviving legal entity once the recapitalisation exercise is concluded.
Analysts say the recapitalisation is aimed at shoring up buffer capital across the banking sector so lenders can better absorb shocks and support economic growth. The CBN has committed to oversight and support to ensure the programme’s goals are met before the March 31, 2026 cut-off.
