Additional N900 billion capital is anticipated to be injected into the Nigerian banking trade earlier than the tip of 2025, though the expiration of the regulatory forbearance will average the efficiency of the banks, a report by Agusto & Co. Limited has hinted.
In its “Nigerian Banking Industry Report” the agency famous that the banking trade has remained resilient, efficiently navigating numerous world and home macroeconomic vagaries.
The report said: “The trade has maintained an upward development trajectory with the entire property and contingents projected to achieve N242.3 trillion ($151.4 billion at N1600/$) by thirty first December 2025 after increasing by 44.9% 12 months on 12 months (Y/Y) to N186.6 trillion ($121.5 billion at N1536;/$) as at thirty first December 2024.
“Notwithstanding the funding pressure from the prevailing high interest rate environment and the contractionary stance of the monetary authority, the industry remained liquid with a 59.4% (FYE 2023: 43.5%) liquidity ratio.”
Agusto additional stated: “We imagine the liquidity ratio will exceed 60% by Full Year End 2025, supported by beneficial, albeit declining yields on treasury securities.
“In our view, banks will speed up the adoption of progressive funding methods, as mirrored within the uptick in industrial paper issuances, to average the affect of funding pressures.
“In the first seven months of 2025, commercial papers amounting to N750 billion were issued by various players. We anticipate more issuances particularly as the prevailing yields gradually moderate in the latter part of the year.”
The report additionally revealed that N1.7 trillion was raised by 16 banks in 2024.
It said: “The introduction of a brand new minimal paid-up capital in March 2024 drove recapitalisation actions within the Industry. Although the minimal paid-up Capital directive won’t be efficient till 31 March 2026, about 1.7 trillion was raised by 16 banks in 2024.
“Similarly, N800 billion was raised within the first seven months of 2025. Thus, eight banks have complied with the minimal paid-up capital directive as at 31 July 2025, forward of the 31 March 2026 deadline.
“However, the obligatory verifications by the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) are pending on a few of the capital raised. We observe positively that home traders supplied a lot of the capital raised by the banks within the final 19 months, reflecting the acceptability of the Industry by Nigerians.
“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. Thus, providing additional capital buffers for current business risks and near term growth plans,” the report added.
