A new report by Proshare has revealed that only two Tier 1 banks — Zenith Bank and Access Holdings — have crossed the N500 billion share capital and share premium benchmark set by the Central Bank of Nigeria (CBN) for banks with international licences.
The report, titled ‘Tier 1 Banks Report: Getting Bigger, Braver, and Dominant – The Class of 2025’, shows Zenith Bank is currently leading with N614.65 billion, while Access Holdings comes in a close second with N594.90 billion.
Other Tier 1 banks are trailing in their capitalization. Ecobank Transnational Incorporated stands at N353.51 billion, while Guaranty Trust Holding Company has N345.30 billion.
The report explained, “All Tier 1 banks are licensed for international operations. However, borderline banks — the highest-ranked tier 2 banks — have also chosen to pursue N500 billion in share capital to stay competitive in the growing banking industry.”
Proshare’s analysts also explained a dramatic shift in the banking hierarchy. Ecobank Transnational has overtaken Zenith Bank at the top of the tier 1 ranking, thanks largely to its 67.11 per cent growth in total assets. The growth came mainly from its operations in francophone West Africa.
Meanwhile, Fidelity Bank — despite a N225 billion Supreme Court judgment against it — is expected to move back into the tier 1 group by the 2025 financial year. The bank is expected to stay liquid and strong if it strategically manages the judgment’s impact.
The analysts explained the recapitalisation drive comes at a time when customer banking needs are changing. “The era we are in now is different; it’s more about meeting customer needs for bespoke services instead of simply growing balance sheets.”
The report further explained that while banks were previously rated mainly by their total assets, now asset growth is an equally important indicator. Among the banks experiencing strong asset growth are Ecobank Transnational (67.11 per cent), Wema Bank (59.82 per cent), FCMB (59.46 per cent), FirstHoldco (56.60 per cent), and Access (55.49 per cent).
Proshare raised some concerns about the growing amount of non-performing loans and the weak use of balance sheet leverage by Nigerian banks.
“Off-balance sheet transactions have grown exponentially globally, but in Nigeria, this form of banking is under-utilised,” the report stated.
Proshare also explained that while banks might face short-term pressures on their profits, the recapitalisation policy will put them on a stronger path in the long term. The policy will help banks boost their capital adequacy ratios and improve risk management.
The report concluded by noting that the March 2026 deadline for banks to meet the recapitalisation requirement is realistic, adding that most banks are making progress, although a few are lagging.
