The number of commercial banks in Nigeria is shrinking as regulatory reforms by the Central Bank of Nigeria (CBN) drive industry consolidation. One major development was the merger of Titan Trust Bank with Union Bank, effectively reducing the number of independent commercial banks.
TJ News Nigeria reports that industry analysts also expect Providus Bank to absorb Unity Bank, which would further reduce the number of active licensed banks.
CBN’s Recapitalisation Drive
The CBN, which has statutory authority to issue and revoke banking licences, recently rolled out new capitalisation requirements to strengthen Nigeria’s financial sector.
The apex bank warned that lenders unable to meet the new rules risk losing their operating licences.
At the start of the year, Nigeria had 28 commercial banks, but with the recapitalisation deadline set for March 31, 2026, the number may fall further.
New Capital Requirements by the CBN
In its circular, the CBN stated that banks must raise capital either by:
- Injecting fresh equity capital through private placements, rights issues, or public offers.
- Undertaking mergers and acquisitions (M&As).
- Applying for an upgrade or downgrade of licence authorisation.
The minimum capital thresholds are:
- International commercial banks: ₦500 billion
- National commercial banks: ₦200 billion
- Regional commercial banks: ₦50 billion
- Merchant banks: ₦50 billion
- Non-interest (Islamic) banks – national: ₦20 billion
- Non-interest (Islamic) banks – regional: ₦10 billion
According to the CBN, these measures are designed to create stronger and more resilient financial institutions capable of financing larger credit volumes. The policy aligns with the federal government’s ambition of building a $1 trillion economy by 2030.
Current Full List of 28 Commercial Banks in Nigeria
Here is the latest list of CBN-approved commercial banks in Nigeria before the merger adjustments take full effect:
- Access Bank Plc
- Alpha Morgan Bank Limited
- Citibank Nigeria Limited
- Ecobank Nigeria Plc
- Fidelity Bank Plc
- First Bank of Nigeria Limited
- First City Monument Bank Plc (FCMB)
- Globus Bank Limited
- Guaranty Trust Bank Plc (GTBank)
- Keystone Bank Limited
- Nova Commercial Bank Limited
- Optimus Bank
- Parallex Bank Ltd
- Polaris Bank Plc
- Premium Trust Bank
- Providus Bank (set to take over Unity Bank)
- Signature Bank Limited
- Stanbic IBTC Bank Plc
- Standard Chartered Bank Nigeria Ltd
- Sterling Bank Plc
- SunTrust Bank Nigeria Limited
- Tatum Bank Limited
- Titan Trust Bank Ltd (ceased to exist after merging)
- Union Bank of Nigeria Plc (merged with Titan Trust Bank)
- United Bank for Africa Plc (UBA)
- Unity Bank Plc (expected to be absorbed by Providus Bank)
- Wema Bank Plc
- Zenith Bank Plc
Industry Implications
The consolidation of Titan Trust Bank into Union Bank has already altered the market landscape. Union Bank, with over a century of operations, will now carry forward the legacy of both institutions under its 108-year-old brand.
Meanwhile, the anticipated Providus–Unity Bank merger is being closely monitored as banks strategise to meet the recapitalisation deadline.
Nigerian Banking Landscape Under Transition
The recapitalisation drive is widely seen as part of broader reforms aimed at stabilising the banking sector, boosting investor confidence, and enhancing the ability of Nigerian banks to fund large-scale projects.
Observers believe that more mergers and acquisitions are inevitable as smaller banks struggle to meet the steep capital requirements.
As the March 2026 deadline approaches, Nigeria’s financial sector is expected to emerge leaner but stronger, with fewer banks that have bigger balance sheets and the resilience to withstand global and domestic shocks.
