No Nigerian Bank Is Shutting Down as Recapitalisation Strengthens Sector – ACAMB

Nigeria’s banking industry is not in crisis. No bank is shutting down. And contrary to alarmist claims circulating on social media, the ongoing recapitalisation exercise is a strength-building reform — not a rescue mission.

This was the unequivocal message from the Association of Corporate Communication and Marketing Professionals in Banks (ACAMB), as it moved to douse rising public anxiety triggered by a viral Instagram video alleging that 12 Nigerian banks would be shut by March 2026.

Misinformation Meets Regulatory Reality

In a joint statement signed by ACAMB President Rasheed Bolarinwa and General Secretary ‘Jide Sipe, the association described the video as reckless, misleading, and economically dangerous, noting that it exploited fear for personal gain while displaying a fundamental misunderstanding of banking recapitalisation.

According to ACAMB, the claims were factually incorrect, regulatorily unsound, and strategically misleading, designed to provoke panic rather than inform the public.

“The recapitalisation exercise is not a crisis response, nor an indication of distress,” ACAMB stated.
“It is a forward-looking, proactive policy designed to strengthen the banking system and position it to support Nigeria’s ambition of becoming a $1 trillion economy by 2030.”

What Recapitalisation Really Means

At the heart of the confusion is a failure to grasp what recapitalisation entails.

The policy, driven by the Central Bank of Nigeria (CBN), focuses strictly on core ownership capital — share capital and share premium. It does not target total shareholders’ funds, nor does it invalidate capital instruments such as bonds or preference shares.

In practical terms, recapitalisation is about scaling capacity, not salvaging failure.

ACAMB stressed that:

• Nigerian banks remain safe, sound, and adequately capitalised
• Capital adequacy buffers are strong enough to meet both customer obligations and regulatory requirements
• The process is growth-oriented, not consolidation-driven

Banks Are Already Ahead of Schedule

Far from being on the brink, the industry is progressing steadily.

More than one-third of Nigerian banks have already met their recapitalisation thresholds, while most others are at advanced implementation stages. Every bank submitted a recapitalisation plan to the CBN in 2024, all of which were vetted and approved for feasibility before execution commenced.

In its latest assessment, the CBN publicly expressed satisfaction with industry-wide progress, reaffirming that banks are on track to meet stipulated deadlines.

Clearing the Air on Specific Banks

ACAMB also addressed speculative claims made against named institutions:

• FirstBank, UBA, Fidelity Bank, and FCMB — All international banks with significant recapitalisation progress, already exceeding national bank capital thresholds and facing no undercapitalisation risk
• Citibank Nigeria and Standard Chartered Bank Nigeria — Strong subsidiaries backed by global parent institutions
• Sterling Bank — Has completed key recapitalisation phases, including private placement and rights issues
• Polaris Bank and others mentioned — Clearly defined recapitalisation pathways and no signs of financial distress

These institutions remain fully operational and regulatorily compliant.

CBN: Orderly, Structured, On Track

ACAMB recalled comments by CBN Governor Olayemi Cardoso, who confirmed at a November briefing that the recapitalisation exercise “is progressing in an orderly manner and in line with regulatory expectations.”

Nigeria currently has 44 deposit-taking banks across multiple licence categories, all operating under strict supervisory oversight.

Beyond Free Speech: Economic Responsibility

While freedom of expression is constitutionally protected, ACAMB warned that it does not excuse false representation, economic sabotage, or panic-inducing narratives.

The association disclosed plans to draw the attention of relevant law-enforcement agencies to content that potentially violates the Cybercrime Act, especially where misinformation threatens financial stability.

Content creators and media organisations were urged to resist click-bait sensationalism and uphold accuracy, balance, and responsibility when reporting on the banking sector.

BRANDECONOMY Insight

Recapitalisation is a signal of confidence, not collapse. Nigeria’s regulators are strengthening the system ahead of future economic expansion — not reacting to weakness.

For depositors, investors, and businesses, the takeaway is clear:
Nigeria’s banks are open, regulated, resilient — and firmly in business.

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