**Nigeria's Banking Sector: A Capital Injection Countdown** As the March 31, 2026, deadline draws near, Nigeria's banking sector is in a state of high alert. The Central Bank of Nigeria (CBN) has set a new minimum capital requirement for deposit money banks, with only 20 out of 33 institutions meeting the target. This is a critical milestone in the country's ambitious banking recapitalisation drive, aimed at strengthening the financial system and positioning it for growth. The CBN's governor has expressed satisfaction with the progress made so far, citing the steady increase in the number of banks meeting the new capital requirements. This exercise, first announced in 2024, is designed to enhance the resilience of banks, particularly in the face of rising inflation, currency volatility, and growing credit risks. With a view to becoming a $1 trillion economy, Nigeria's financial system needs a robust backbone to absorb unexpected shocks and maintain stability. Under the new regime, banks are required to meet minimum paid-up capital based on their operating licences. The requirements range from ₦10 billion ($7.41 million) for non-interest banks with regional authorisation to ₦500 billion ($370.58 million) for international banks. While larger lenders have generally met the new capital requirements, concerns remain for smaller and mid-tier banks that may struggle to meet the deadline. Industry analysts predict that some of these struggling banks may explore merger and acquisition options or adjust their business models to comply with the new requirements. The recent announcement of a proposed merger between Unity Bank Plc and Providus Bank Limited is a case in point. The combined entity's capital base now exceeds ₦200 billion ($148.23 million), meeting the new minimum capital requirement. As the deadline approaches, attention is shifting toward the remaining banks that need to meet the new capital requirements. Will they be able to do so, or will they opt for alternative strategies to stay afloat? Only time will tell, but one thing is certain: the future of Nigeria's banking sector is hanging in the balance.