It is a sobering reality that one South African bank, Standard Bank Group, has a market capitalisation of roughly ZAR 384.34 billion (about $21-22 billion), while the entire Nigerian banking sector combined cannot match it.

For a nation of more than 200 million people, with an economy that should be the beating heart of Africa, the fact that a single Johannesburg-based bank can outweigh the collective worth of Nigeria’s 33 licensed banks is more than embarrassing; it is scandalous.

This disparity is not just about prestige. It is about the fundamental ability of Nigeria’s banking system to mobilise capital, finance development, and command investor trust. The comparison with South Africa, a country with less than one-third of Nigeria’s population and a smaller GDP in nominal terms, lays bare the structural weaknesses that have crippled Nigerian banks for decades.

As of May 2025, Nigerian banks listed on the Nigerian Exchange (NGX) had a combined market capitalisation of about N10.5 trillion. In dollar terms, depending on the exchange rate benchmark, this amounts to less than $8 billion. That is the total value investors are willing to place on the entire Nigerian banking system. By contrast, South Africa’s top six banks together are valued at more than $70 billion. Individually, Standard Bank alone commands a market cap of around $21.8 billion, while FirstRand hovers at about $20.5 billion. Absa, Nedbank, and Investec all sit comfortably in the multi-billion-dollar bracket. In Nigeria, the biggest player, GTCO, is valued at less than $2 billion, barely a fraction of its South African peers.

Access Holdings, despite boasting assets above N32 trillion ($71 billion), trades at a market cap of just about $710 million. The disconnect between asset size and market value speaks volumes about investor distrust, weak governance, and systemic fragility.

The paradox of Nigeria’s banking industry is that on paper it appears profitable, yet in reality it is fragile. In 2024, the top five lenders declared after-tax profits that surged more than 270 percent year-on-year. But by the first quarter of 2025, that growth had evaporated, slowing to a meager 0.74 percent. The supposed windfall profits were largely a mirage created by the naira’s freefall, which inflated the value of foreign currency holdings on paper.

These were not profits born of efficiency, innovation, or stronger lending; they were accounting artifacts. The Central Bank of Nigeria (CBN), seeing the danger, stepped in to block banks from paying out these revaluation gains as dividends, insisting they be held as buffers against future shocks. That intervention exposed the hollowness of the profit’s narrative.

The recapitalisation push is the clearest sign yet of the sector’s fragility. With six months to the March 31, 2026, deadline, the CBN has confirmed that fourteen banks have so far scaled the recapitalisation hurdle. The governor of the CBN, Olayemi Cardoso, disclosed this on Tuesday, September 23, 2025, during the Monetary Policy Committee (MPC) meeting in Abuja. That leaves nearly 19 banks still scrambling to raise funds in a market already skeptical of their true value.

If Nigeria’s banks were genuinely as profitable and resilient as they claimed, they would not be racing to the capital markets, scrambling for fresh equity to meet the CBN’s new recapitalisation thresholds: N500 billion for international banks, N200 billion for national banks, and N50 billion for regional players. The contradiction is stark, record profits on one hand, desperate fundraising on the other.

The currency crisis further underscores the fragility of Nigeria’s financial system. According to the Forbes currency calculator report for September 2025, the naira has been ranked as the ninth weakest currency in Africa, trading at about N1,487 to the dollar.

The ranking, based on real-time foreign exchange market data, captures how demand and supply, investor sentiment, and broader economic conditions have battered Nigeria’s exchange rate. On the continent, only currencies like the São Tomé & Príncipe Dobra, Sierra Leonean Leone, Guinean Franc, and a handful of others fare worse. By contrast, the Tunisian Dinar, Libyan Dinar, Moroccan Dirham, Ghanaian Cedi, and Botswanan Pula sit at the top as Africa’s strongest currencies.

For Nigeria, the supposed giant of Africa, such a lowly placement is telling. It is not just a technical matter of exchange rates; it is a reflection of waning investor confidence, policy inconsistency, and the erosion of the naira’s credibility. And this credibility gap feeds directly into why Nigerian banks are so poorly valued compared to their peers.

This is not the first time Nigerian banks have faced such a reckoning. In 2004-2005, then CBN Governor Charles Soludo spearheaded a bold consolidation exercise that shook the industry to its foundations. At the time, Nigeria had eighty-nine banks, most of them under-capitalised, fragile, and unable to finance large-scale projects. Soludo raised the minimum capital base from N2 billion to N25 billion, forcing mergers and acquisitions that reduced the number of banks to 25 by 2005.

The exercise created bigger, more competitive players like Zenith, GTBank, Access, and UBA, which for a time stood tall on the continental stage. Nigerian banks expanded across Africa, rode the wave of oil-driven economic growth, and built reputations as ambitious challengers to South African dominance.

But the momentum did not last. The global financial crisis of 2008, compounded by oil price volatility and weak regulatory oversight, exposed vulnerabilities. Many banks were overexposed to the stock market and the oil sector.

By 2009, a new CBN governor, Sanusi Lamido Sanusi, had to intervene with another round of reforms, including emergency bailouts, leadership changes, and tighter risk management rules. While those measures stabilised the sector, they also clipped its wings, pushing banks towards conservatism rather than innovation.

Over the next decade, as South African banks deepened their continental footprint and attracted global investors, Nigerian banks retreated into a survival mode, relying more on government securities, forex arbitrage, and fee-based income than on transformative lending.

Today, the consequences are clear. Investors are not rewarding Nigerian banks with higher valuations because they see deeper issues: weak governance, currency instability, short-termism, and a preference for rent-seeking over risk-taking.

Access Bank, with assets of over $71 billion, is valued by the market at less than $1 billion, which is an absurd disparity that reflects not just naira devaluation but also a crisis of confidence. Meanwhile, Standard Bank and FirstRand are rewarded with valuations in the tens of billions because they have built reputations for governance, stability, and consistent growth, even in a difficult South African economy.

The implications of this disparity go far beyond balance sheets. Banking is the lifeblood of any economy. Without robust, well-capitalised banks, Nigeria cannot fund the infrastructure, industrialisation and job creation it desperately needs.

Instead of driving development, banks have become rent-seekers, charging high fees, exploiting exchange rate gaps, and surviving on government bond yields. This is not banking for growth; it is banking for survival. The danger is that Nigeria’s banking sector could become increasingly irrelevant on the continental stage. Already, pan-African conversations about finance, trade, and fintech leadership are dominated by South African, Kenyan, and Moroccan institutions. If Nigerian banks cannot scale up, innovate, and command investor trust, the country risks losing its voice in shaping Africa’s financial future.

Fixing Nigeria’s banking woes will require bold reforms, not half measures. Deep recapitalisation is essential, not just to meet regulatory minimums but to build genuine resilience. Governance must be overhauled to eliminate opacity, insider abuses, and regulatory capture.

Banks must be compelled to shift their focus from government securities and currency speculation to financing manufacturing, SMEs, and infrastructure, which are the engines of real growth. Macroeconomic stability, especially currency and inflation control, is indispensable to restoring confidence.

And if that means forcing consolidation once again, so be it. Nigeria does not need 33 weak banks; it needs fewer, stronger institutions that can compete with global peers.

Nigeria prides itself as the giant of Africa. But in banking, it is dwarfed by a smaller neighbour. That a single South African bank is worth more than the entire Nigerian banking system should serve as a blaring siren.

It is a sign that the foundations of Nigeria’s financial architecture are weak, and without urgent reform, the gap will only widen. The lesson is clear: size of population or GDP counts for little if banks cannot mobilise and protect capital. Until Nigeria’s lenders transform from fragile, short-term operators into robust, trusted financial powerhouses, the humiliation will persist with one South African bank towering over an entire Nigerian industry.

L-R: Bunmi Dayo-Olagunju, Deputy CE, Stanbic IBTC Bank; Dr. Mrs. Fidelia Ighrakpata, Representative from the First Lady’s office; Hon. Andrew Agogbo, Vice Chairman Uvwie Local Government at the handover ceremony of Alegbo Primary School Delta forming part of the Stanbic IBTC’s Adopt-A-School initiative.

Stanbic IBTC Holdings has renovated Alegbo Primary School in Delta State, as part of its Adopt-A-School initiative, marking another milestone in the financial institution’s steadfast commitment to educational excellence across Nigeria.

The comprehensive renovation and expansion project represents a holistic approach to educational development, addressing critical infrastructure needs while creating an environment that enables quality learning.

The transformative initiative encompassed an extensive scope of work designed to elevate the standard of education at rural primary schools. The project included the complete renovation of a three-classroom block.

Each of the renovated classrooms received brand-new furniture designed to accommodate 40 students per class, with 20 carefully selected desks and chairs to enhance the learning experience. These upgrades will benefit more than 581 students and staff members.

Kunle Adedeji, Acting Chief Executive, Stanbic IBTC Holdings, emphasised the project’s commitment to enhancing education in Nigeria.

“This project represents our deep-seated belief in the transformative power of education and our commitment to nurturing the next generation of Nigerian leaders. By providing comprehensive infrastructure that addresses multiple aspects of the educational environment, we are not just building classrooms – we are building futures and empowering communities to thrive.”

Bunmi Dayo -Olagunju, Deputy Chief Executive, Stanbic IBTC Bank, highlighted that the success at Alegbo Primary School demonstrates the need for quality education through a blend of infrastructure, technology, and environmental awareness.

“Our approach to educational philanthropy goes beyond mere infrastructure provision – we believe in creating holistic learning environments that inspire excellence and foster innovation. The success of this project at Alegbo Primary School reflects our understanding that quality education requires a combination of proper infrastructure, technology integration, and environmental consciousness.”

Recognising the importance of digital literacy in contemporary education, Stanbic IBTC constructed a fully equipped computer laboratory, complete with ten modern computers and ten custom-built workstations, providing students with essential technological skills for the digital age.

Understanding the fundamental importance of proper sanitation facilities in educational settings, the bank constructed eight modern toilet facilities; four dedicated to girls and four to boys ensuring privacy, and improved hygiene standards for all students.

The initiative extended beyond traditional classroom infrastructure to include the establishment of a mini-library, creating a dedicated space for reading culture and academic research. Recognising the importance of physical education and recreation in child development, the project also featured the development of a bore hole, providing students with opportunities to clean water supply and contributing to their overall well-being.

Environmental beautification efforts formed an integral component of the project, with the planting of 50 trees and flowers across the school grounds. This initiative not only creates a more pleasant and inspiring learning atmosphere but also promotes environmental consciousness among students, teachers, and the broader community.

The Alegbo Primary School transformation marks the 10th school to benefit from Stanbic IBTC’s systematic approach to educational development across Nigeria, demonstrating the organisation’s commitment to diverse geographic representation in its educational support initiatives. The organisation has consistently focused its Adopt-A-School programme on comprehensive interventions that address multiple aspects of the educational environment, from basic infrastructure to technological integration and environmental sustainability.

The project was officially inaugurated during a ceremony attended by local government officials, traditional rulers, representatives of the parent-teacher association, and community stakeholders, who witnessed the handover ceremony, highlighting the importance of partnership in driving meaningful changes in the education sector.

The Stanbic IBTC Adopt-A-School programme continues to demonstrate the bank’s leadership in corporate social responsibility, with a particular focus on educational development as a catalyst for national growth and development.

The initiative aligns with Nigeria’s educational policy objectives while addressing critical infrastructure gaps that have historically limited access to quality education in rural and underserved communities.

Polaris Bank, in partnership with the Nigeria Conservation Foundation (NCF), has extended its nationwide tree planting campaign to three key locations: The Lekki Conservation Centre in Lagos State, the Federal University of Agriculture, Abeokuta (FUNAAB), Ogun State and Sardauna College Kaduna, Kaduna State.

The initiative, first launched in 2024 during the Bank’s World Environment Day commemoration, is part of Polaris Bank’s broader commitment to combating climate change, reducing carbon emissions, and promoting sustainable environmental practices across Nigeria.

The Lagos edition, which held at the iconic Lekki Conservation Centre, was attended by Executive Directors, Chris Ofikulu and Sharafadeen Muhammad, alongside partners from NCF.

Speaking at the event, Chris Ofikulu, Executive Director, Commercial and Retail expressed his appreciation to all participants at the Tree-planting exercise, noted that the initiative highlights the importance Polaris Bank attaches to environmental sustainability. He recalled leading the Bank’s first tree planting activity after its launch in 2024 at TASUED, Ogun State.

He further noted that the exercise aligns with the United Nations Decade of Ecosystem Restoration, a global movement dedicated to securing a greener future for generations to come. He emphasized that Polaris Bank sees sustainability not merely as a responsibility but as a business imperative.

He added that, through this initiative, Polaris Bank reaffirms its role beyond banking services and remains firmly in line with the collective goal of planting 10,000 trees.

Also speaking at the event, Sharafadeen Muhammad, Executive Director, Operations, emphasized that protecting the environment and the planet is a shared responsibility for the benefit of all.

He described the initiative as a commendable effort and encouraged the establishment of reserves that conserve nature while creating economic value. He further reaffirmed Polaris Bank’s commitment to supporting the tree-planting initiative.

In Ogun State, the Divisional Head, Ogun/Oyo, Yetunde Okeleye emphasized that the tree-planting initiative reflects Polaris Bank’s unwavering commitment to environmental sustainability. By planting economic trees across the country, including Ogun State, we are demonstrating that sustainability is not just a responsibility but part of our ethos as a Bank.

Our partnership with the Nigerian Conservation Foundation at the Federal University of Agriculture, Abeokuta, underscores our resolve to restore degraded land, prevent soil erosion, and combat climate change.

Through this initiative, Polaris Bank reaffirms its role as a driver of environmental stewardship and community well-being, while contributing to a greener and more sustainable future for generations to come.”

In Kaduna State, Mr. Kabir Lawal, Acting Group Head, North West, alongside the Bank’s staff from Kaduna business locations, reiterated, sustainability is not just a catchphrase but the Bank’s culture, a journey pursued with conviction.

Every decision we make is guided by environmental, social, and governance (ESG) principles, ensuring that we address environmental issues while empowering communities and driving inclusive growth.

He further said that the exercise at Sardauna Memorial College, in partnership with the Nigerian Conservation Foundation, is a testament to this commitment. Beyond reducing carbon footprints, our Tree-planting initiative restores degraded areas, prevents soil erosion, improves environmental health, and raises awareness on the importance of preservation.

The NCF commended Polaris Bank’s leadership, stressing that the selected trees comprising fruit bearing and shade providing species would serve multiple benefits, including erosion control, wind breaking, shade provision, and food security.

Community representatives from FUNAAB and Sardauna College Kaduna expressed gratitude to Polaris Bank and NCF for spearheading the initiatives, describing them as timely and impactful in addressing the global climate challenge.

Polaris Bank continues to integrate sustainability into its operations, ensuring that climate action and community development remain central to its long-term growth strategy. Through collaborations like this, the Bank reaffirms its role as a catalyst for positive environmental and social impact.

Sterling Bank has once again redefined the boundaries of customer-first banking in Nigeria by scrapping Account Maintenance Fees (AMF) across all personal accounts.

Just months after abolishing transfer fees on local online transactions in April 2025, the bank has dismantled yet another long-standing industry practice, cementing its role as the nation’s leading force for transparent, fair, and customer-focused banking.

This decision cuts at the heart of a revenue model that has long cost Nigerian customers dearly. In 2024 alone, tier-1 banks raked in over ₦650 billion from account maintenance and e-banking charges.

Sterling’s move rewrites Nigeria’s banking rulebook while amplifying its bold stance: customers deserve freedom from too many deductions and the right to keep more of their hard-earned money.

Abubakar Suleiman, Managing Director of Sterling Bank, explained the principle driving this bold action: “Every fee we remove is one less barrier between our customers and true financial freedom. This was the rationale behind eliminating transfer fees in April, and it is the same principle we uphold as we eliminate account maintenance fees.”

Obinna Ukachukwu, Growth Executive for Consumer and Business Banking at Sterling Bank, reinforced this position: “This initiative is about building lasting relationships that fuel sustainable growth.

We put transparency and customer value first, and in doing so, we are building a foundation that serves both our customers and Sterling’s future.”

As Nigeria marks another Independence Day, Sterling Bank presents this decision as a declaration of financial independence for millions of Nigerians.

By freeing customers from deductions that silently erode their balances, Sterling is empowering them to keep and grow their wealth while redefining true financial freedom.

With two unprecedented moves in quick succession, the removal of transfer fees in April and now the elimination of account maintenance charges, Sterling Bank continues to challenge the status quo and champion a new era of fairness in Nigerian banking.

About Sterling Bank

Sterling Bank is a forward-thinking financial institution committed to transforming lives

through innovative solutions, exceptional service, unwavering integrity and a steadfast focus on its HEART strategy. As pioneers in digital banking and financial inclusion, Sterling continues to lead by example, proving that purpose-driven leadership can unlock transformative outcomes for individuals, businesses and society at large.

The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, will deliver a landmark lecture at Lagos Business School on Friday, October 3, 2025.

The lecture, titled “Next Generation Leadership in Monetary Policy & Nation Building,” marks the launch of the CBN Governor’s Lecture Series, the first in a series of thought-leadership discourses to be held in collaboration with leading tertiary institutions across the country over the next three years.

This inaugural edition also commemorates the second anniversary of Team Cardoso’s leadership at the Central Bank of Nigeria, a period defined by renewed focus on price stability, institutional transparency, and anchoring monetary policy to the everyday realities of Nigerians.

The Governor’s Lecture Series, part of Mr. Cardoso’s broader Knowledge Acceleration and Thought Leadership Initiative, is central to the CBN’s strategy of deepening public understanding and strengthening the transmission of monetary policy. It aims to foster dialogue, promote innovation, and advance an inclusive financial system that works for all Nigerians, while positioning the country as a leader on both the African and global stages.

Since assuming office in September 2023, Mr. Cardoso has consistently emphasized linking central banking to the daily realities of citizens. He has stressed that the Bank’s core mandate, safeguarding price stability, is essential to driving sustainable economic growth and protecting livelihoods.

“Nigeria is at a pivotal moment, where technology, global financial realignments, and the energy of its youthful population are reshaping its economic future. Innovation must be harnessed intentionally and confidently, particularly by institutions like the CBN,” Cardoso noted in an earlier engagement.

The lecture is expected to attract senior policymakers, industry leaders, academics, and students, underscoring the crucial role of monetary policy in fostering stability, growth, and national development.