Two Nigerian national banks have entered secret merger talks as they race to meet the Central Bank of Nigeria’s (CBN) tough recapitalisation deadline of March 31, 2026.
Sources familiar with the negotiations revealed that the discreet discussions began in the second quarter of 2025, driven by the need to meet the N200 billion capital requirement for national banks without resorting to costly public offers or triggering strict Securities and Exchange Commission (SEC) disclosure protocols.
The talks are focused on aligning board structures, streamlining operations, and ensuring shareholder consensus—moves seen as critical to avoiding regulatory breaches and competitive disadvantages.
This covert merger play comes as several mid-tier and smaller banks struggle to close huge funding gaps, with six lenders collectively facing a shortfall of nearly N965 billion. By contrast, bigger players like Access Bank, Zenith Bank, Lotus Bank, Ecobank Nigeria, and Jaiz Bank have already surpassed their capital thresholds, solidifying their market dominance.
Analysts say the recapitalisation drive is not just about compliance—it’s aimed at building a stronger, more resilient financial sector capable of supporting Nigeria’s ambitious target of becoming a $1 trillion economy by 2030. However, for weaker banks, the pressure is immense, with mergers, acquisitions, and strategic alliances emerging as the most viable lifelines.
If successful, the merger under discussion could create a more competitive national lender, able to withstand economic shocks, expand lending capacity, and play a bigger role in financing key sectors of the economy.
