BY GODWIN OBI
Nigeria’s banking sector has recorded an unprecedented surge in market value, with the total capitalisation of publicly listed banks rising more than fourfold to over N17 trillion, driven by aggressive recapitalisation and strong investor confidence.
Market data reviewed showed that banks’ combined valuation, which stood at below N4 trillion before the recapitalisation exercise, closed the past weekend at above N17 trillion, marking one of the most dramatic expansions in the sector’s history.
While the relative ranking of banks on the capitalisation table has remained largely unchanged, most lenders recorded three-digit growth in market value. Wema Bank emerged as the standout performer, posting a staggering 1,686 per cent increase in capitalisation during the period under review.
Data from the Nigerian Exchange (NGX), analysed by The Nation’s Market Intelligence, covered the period between February 23, 2023 and January 23, 2026. The ongoing recapitalisation programme was formally launched in March 2024, following earlier signals from the Central Bank of Nigeria (CBN).
At the start of the period, no bank had crossed the N1 trillion valuation mark. Today, about half of the listed banks are valued well above one trillion naira, underscoring the scale of transformation in the sector.
Leading the valuation table are Guaranty Trust Holding Company (GTCO) at N3.588 trillion, Zenith Bank with N2.916 trillion, First HoldCo at N2.178 trillion, United Bank for Africa (UBA) with N1.940 trillion, Stanbic IBTC Holdings at N1.717 trillion, Access Holdings with N1.194 trillion, and Ecobank Transnational Incorporated, which opened trading with a market value of N1.115 trillion.
By comparison, at the beginning of the period, GTCO, Zenith Bank, First HoldCo, UBA, Stanbic IBTC Holdings, Access Holdings and Ecobank Transnational Incorporated were valued at N745 billion, N796 billion, N416 billion, N287 billion, N447 billion, N325 billion and N220 billion, respectively.
Mid-tier banks also posted impressive gains. Wema Bank’s valuation rose from N51 billion to N911 billion, while Fidelity Bank climbed from N146 billion to N954 billion. FCMB Group, initially valued at N85 billion, now boasts a market capitalisation of N500 billion.
Analysts attribute the sharp rise in market capitalisation to a combination of fresh capital injections and sustained share price appreciation, fueled by positive sentiment towards banking stocks.
Commenting on the trend, Managing Director of GTI Capital Limited, Mr Kehinde Hassan, described the surge as clear evidence of the success of the recapitalisation exercise.
According to him, the broad-based increase in banks’ valuations highlights the resilience of the sector, noting that institutions across all tiers were able to strengthen their capital base.
“The data reflects strong investor confidence in the banking industry and the wider financial services sector,” Hassan said. “Such a significant increase in minimum capital could have triggered panic selling, but instead, investors chose to increase their stakes—even at higher prices. That is the clearest measure of confidence.”
In March 2024, the CBN issued a circular reviewing minimum capital requirements for commercial, merchant and non-interest banks. Under the new framework, commercial banks with international authorisation must now have a minimum capital of N500 billion, national banks N200 billion, and regional banks N50 billion. Merchant banks are required to hold N50 billion, while non-interest banks must maintain N20 billion for national and N10 billion for regional licences.
The apex bank set a 24-month compliance window, ending on March 31, 2026, and redefined minimum capital as the sum of share capital and share premium, replacing the earlier benchmark of shareholders’ funds.
Ahead of the deadline, CBN Governor Olayemi Cardoso recently disclosed that 16 banks have already met the new capital requirements, while 27 others are still raising funds. Similarly, the CBN Deputy Governor for Economic Policy, Dr Muhammad Abdullahi, said no fewer than 20 banks have fully complied.
Nigeria currently has 44 deposit-taking banks operating across different licence categories, as the sector races to meet the recapitalisation deadline amid renewed investor enthusiasm and record-breaking valuations.
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