Some sectors of the Nigerian economy, like the marine and blue economy, entertainment and arts, and hospitality, are expected to benefit from the ongoing recapitalisation of banks. This was made known in the fourth edition of the Tier 1 Banks Report by Proshare titled “Getting Bigger, Braver and Dominant, the Class of 2025.” The report was launched on Wednesday.
Nigerian banks are currently raising additional funds to meet the new minimum capital set by the Central Bank of Nigeria (CBN) in preparation for the 2026 deadline. According to the Proshare report, banks need to be more flexible, imaginative, and agile if they want to help grow the country’s $1 trillion (about N1,500 trillion) economic goals by the end of the 2020s.
The report explained that strengthening banking operations during the rest of this period will align with the federal government’s growth plans. However, this will require banks to break down the country’s 46 sectors into what Proshare calls 14 sub-economies.
With more capital, banks will have greater ability to fund medium and long-term projects in sectors that drive growth. The report highlights sectors such as the marine and blue industry, entertainment and arts, hospitality and real estate, mineral mining, and energy. According to the report, these sectors will benefit from the recapitalisation of banks.
Proshare also introduced its Bank Strength Index, a tool that assesses key banking metrics. Ecobank Transnational, Access Corporation, FirstHoldCo, Zenith Bank, United Bank for Africa, and Guaranty Trust Holding Company were all rated as Tier 1 banks in the index.
The 2025 PBSI focuses on 5 main components in its scoring. The first is capital adequacy and size, which underscores the ongoing recapitalisation. The second is asset quality and growth, reflecting how well banks handle non-performing loans and grow their portfolios. The third is digital transformation, which assesses how much banks rely on technology to connect with their customers. The fourth is profitability and efficiency — this measures their ability to control cost, manage margins, and grow profits. The fifth component focuses on key governance metrics.
ETI (Ecobank Transnational) came first in the ranking due to its strong growth of 67.11% in total assets and its ability to perform well outside its home market in West Africa.
The report also made several recommendations for banks. It explained that understanding the habits of different corporate and retail customers will be key to delivering services effectively. The report also suggested banks should use Artificial Intelligence (AI) to aid service delivery.
Proshare added that cooperation with financial technology companies (fintechs) will be a decisive factor in the future of banking. The report raised questions about who owns the customer — banks or fintechs — adding that this is a crucial issue that will affect competition.
With technology, many banking decisions, from deposit transactions to loan approvals, will be made by machines based on data. The report explained that this will help cut human biases and make banking more efficient and fair.
The Founder and Chairman of Proshare, Olufemi Awoyemi, described this moment as a “GSM moment”— a period when technology transforms an industry. He explained that for the country to grow at 7-8% and for banks to become strong enough to fund large projects, a burst of activity, much like the GSM phone revolution in the 2000s, is required.
Awoyemi added that by the middle of 2025, Nigerian banks had raised over N13 trillion in new capital. He explained this will result in strong capital buffers against bad loans and will enable banks to fund big projects across the country.
With more capital and strong balance sheets, banks will be able to operate across borders and pursue opportunities all over Africa. “The recapitalisation means banks can handle large transactions, fund businesses, and absorb losses if something goes awry. It signals a new era of financial stability and growth for the banking industry and the country at large.
