Only two Tier 1 banks—Zenith Bank and Access Holdings Plc—have so far exceeded the N500 billion share capital and share premium threshold mandated by the Central Bank of Nigeria (CBN) for banks with international licences, according to a new report by Proshare.
Titled “Tier 1 Banks Report: Getting Bigger, Braver, and Dominant – The Class of 2025”, the analysis reveals that Zenith Bank leads with a combined share capital and premium of N614.65 billion, closely followed by Access Holdings at N594.90 billion.
Other top-tier banks, such as Ecobank Transnational Incorporated (ETI) and Guaranty Trust Holding Company (GTCO), trail behind with N353.51 billion and N345.30 billion, respectively.
The report notes that while all Tier 1 banks are internationally licensed, some top Tier 2 banks—referred to as “Tier 1 borderline banks”—are also aiming to meet the N500 billion target.
This is part of a broader strategy to compete more aggressively in both continental and global banking markets.
A notable shift in the banking hierarchy was also highlighted, with ETI overtaking Zenith Bank at the top of the Tier 1 rankings, driven primarily by a significant 67.11% growth in assets, largely from its operations in Francophone West Africa.
The report further projects that Fidelity Bank could re-enter the Tier 1 category by the end of the 2025 financial year, despite a N225 billion Supreme Court liability linked to its past acquisition of FSB International Bank. Proshare analysts believe the bank could maintain sufficient liquidity if it manages the financial impact strategically.
Proshare also assessed the broader implications of the CBN’s recapitalisation drive. While previous recapitalisation efforts were largely structural, this latest round reflects evolving customer demands for more personalized, transaction-focused banking services.
“Recapitalisation is not new to Nigeria’s banking industry, but the current phase is unique,” the report states. “It reflects a transformation in customer expectations, requiring banks to align more closely with the demand for bespoke, transactional services.”
In terms of asset growth, the report ranks the top five banks as follows: ETI (67.11%), Wema Bank (59.82%), FCMB (59.46%), FirstHoldco (56.60%), and AccessCorp (55.49%). This shift suggests that asset growth is becoming as important as total asset size in gauging market leadership.
However, the report also raises concerns around the sector’s underutilisation of off-balance sheet transactions and persistent issues with non-performing loans and inefficient balance sheet leverage.
While short-term pressures on return on equity and capital employed may arise, the long-term outlook for Nigerian banks remains optimistic, the report concludes. Enhanced capital adequacy ratios and stronger risk management practices are expected as institutions adapt to the recapitalisation mandate.
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Proshare affirms that the CBN’s March 2026 deadline for full compliance remains attainable, though some banks are progressing more slowly than others.
