Behind the scenes, Nigeria’s banks and insurers are being forced to raise huge amounts of capital. The mergers and tighter lending that follow will touch your business — usually without anyone telling you directly.
In 2024 the CBN ordered banks to dramatically increase their minimum capital, with a deadline of March 2026 — ₦500 billion for international banks, ₦200 billion for national banks and ₦50 billion for regional banks. Separately, the 2025 Insurance Industry Reform Act raised the capital floors for insurers. These are enormous sums, and meeting them has triggered a wave of capital raises, mergers and acquisitions across the financial sector.
Why a small business owner should care
You are not raising this capital, so why does it matter? Because the effects reach you indirectly. The bank you have used for years may merge with another, rebrand, change its account terms, or quietly tighten its lending criteria while it shores up its balance sheet. Your business insurer may change hands, adjust your cover, or reprice your premiums as the reform reshapes the industry. None of this will necessarily come with a clear, personal heads-up.
The bank you’ve used for years may merge, rebrand or tighten lending — and you might only notice when your terms change.
How to stay ahead of it
The defensive moves are straightforward. Confirm your bank’s status and watch for any merger that might change your account details or terms. Avoid putting all your eggs in one basket — keeping a relationship with more than one bank gives you options if one tightens up. Review your business insurance to make sure the cover you think you have is the cover you actually have after any reform-driven change. And because lending criteria tend to tighten during recapitalisation, prepare clean, up-to-date financials now, so that when you do need credit you can present a strong case.
| ✓ YOUR ACTION CHECKLIST |
| ❑ Confirm your bank’s status — if it’s merging, check whether your account details or terms change. |
| ❑ Don’t over-concentrate: keep relationships with more than one bank if you can. |
| ❑ Review your business insurance — reform may change cover, pricing or your insurer’s identity. |
| ❑ Expect tighter lending criteria during recapitalisation, and prepare clean financials in advance. |
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2026 Nigeria Business Policy Reforms Guide
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