Banks Set for ₦900bn Capital Boost Before Year-End — Agusto & Co.

Agusto & Co. Limited has projected that an additional ₦900 billion will be injected into the Nigerian banking sector before the end of 2025, as financial institutions work to meet regulatory capital requirements. However, the firm warns that the expiration of regulatory forbearance could temper overall industry performance.

In its latest Nigerian Banking Industry Report, Agusto highlighted the resilience of the sector, noting that it has weathered a range of global and domestic macroeconomic challenges.

“The industry has maintained an upward growth trajectory,” the report stated, “with total assets and contingents projected to reach ₦242.3 trillion ($151.4 billion at ₦1600/$) by 31 December 2025, following a 44.9% year-on-year expansion to ₦186.6 trillion ($121.5 billion at ₦1536/$) as of 31 December 2024.”

Despite headwinds such as high interest rates and a tight monetary environment, liquidity within the sector remains strong. According to Agusto, the industry posted a liquidity ratio of 59.4% at the end of 2024, up from 43.5% the previous year.

“We believe the liquidity ratio will exceed 60% by Full Year End 2025, supported by favourable, albeit declining yields on treasury securities,” the report said.

Agusto noted a rise in alternative funding mechanisms, including increased use of commercial papers. In the first seven months of 2025 alone, financial institutions issued commercial papers worth ₦750 billion. “We anticipate more issuances particularly as the prevailing yields gradually moderate in the latter part of the year,” the report added.

The banking industry has also seen significant recapitalisation efforts. Following the Central Bank of Nigeria’s (CBN) announcement of a new minimum paid-up capital in March 2024—effective from 31 March 2026—banks began ramping up capital raising activities. A total of ₦1.7 trillion was raised by 16 banks in 2024, with another ₦800 billion secured in the first seven months of 2025.

“As of 31 July 2025, eight banks have already met the new minimum capital requirements, ahead of the deadline,” Agusto reported. However, it noted that verifications by the CBN and the Securities and Exchange Commission (SEC) are still pending for some of the funds raised.

Encouragingly, most of the capital raised over the past 19 months came from domestic investors, reflecting strong confidence in the Nigerian banking industry.

“We anticipate the injection of an additional ₦900 billion as a significant number of banks strive to comply with the minimum capital directive before 31 December 2025,” the report concluded. “This will provide additional capital buffers for current business risks and near-term growth plans.”