Parallex Bank Limited has announced the successful completion of its recapitalisation process, exceeding the N50 billion minimum capital requirement set by the Central Bank of Nigeria (CBN) for regional commercial banks.
The development was disclosed in a company statement issued on Tuesday.
The achievement places Parallex Bank among the financial institutions that have complied with the apex bank’s directive aimed at strengthening the capital base of deposit money banks, enhancing financial system stability, and improving the banking sector’s ability to support economic growth.
What they are saying
The Managing Director of Parallex Bank, Dr. Olufemi Bakre, described the successful recapitalisation as a major milestone for the institution and a testament to the bank’s commitment to long-term growth and operational excellence.
- “The strengthened capital position will enable Parallex Bank to expand its lending capacity, deepen financial inclusion, and continue delivering innovative, customer-focused financial solutions across various segments of the economy,” Bakre said.
He added that the milestone reflects the bank’s belief that consistent pursuit of excellence leads to sustainable results.
Bakre also commended the bank’s Board of Directors and other stakeholders for their strategic guidance and support throughout the recapitalisation process. According to him, the board’s commitment to strong corporate governance and long-term value creation helped ensure disciplined capital planning and successful execution within the required timeframe.
Backstory
The recapitalisation exercise was introduced by the Central Bank of Nigeria in 2024 as part of efforts to build a stronger and more resilient banking sector capable of supporting long-term economic expansion.
- The policy requires banks to significantly increase their capital bases depending on the category of banking licence they hold.
- Regional commercial banks are required to maintain a minimum capital base of N50 billion under the new framework.
- The CBN recently disclosed that about 30 banks have already met the revised minimum capital thresholds under the ongoing recapitalisation programme.
According to the regulator, banks have adopted various strategies to meet the requirements, including raising funds through the capital market, attracting new investors, and restructuring their balance sheets.
While many banks have already achieved compliance, the apex bank noted that others are still undergoing routine supervisory checks before their capital levels are formally confirmed.
The recapitalisation exercise will end on March 31, 2026.
What you should know
Earlier this year, Parallex Bank approached the High Court of the Federal Capital Territory (FCT) seeking to overturn a N7.15 billion freezing order placed on some of its funds.
- The bank filed a motion on notice dated January 7, 2026, requesting the court to set aside the order.
- The case arose from a suit filed by FHT Mega Express Limited over an alleged breach of trust and failure to honour a Letters of Credit agreement.
- Parallex Bank argued that the freezing order violated its constitutional right to a fair hearing and maintained that the court lacked jurisdiction to issue the directive.
The bank also stated that the dispute is already the subject of multiple legal proceedings, insisting that the freezing order should be vacated.
