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BREAKING NEWS: Polaris Bank and Keystone Bank in Merger Talks as CBN Recapitalisation Deadline Looms

As the Central Bank of Nigeria’s (CBN) recapitalisation deadline draws closer, two well-known national banks — Polaris Bank and Keystone Bank — have started talks that could lead to a merger.

Why the Merger?

The CBN, in March 2024, gave all banks a two-year window to meet new minimum capital rules.

National banks must raise their capital base to ₦200 billion.

International banks must move up to ₦500 billion.

Smaller banks and microfinance banks also face new targets.

This move by the apex bank is meant to make banks stronger, safer, and better able to serve Nigerians in a tough global economy.

But for some banks, this is not easy. Raising that kind of money on their own is hard. That is why many banks are now looking at mergers, partnerships, and new investors.

Polaris and Keystone in the Spotlight

Right now, the spotlight is on Polaris Bank and Keystone Bank.
Both banks have large customer bases across the country. But experts say that without a merger or a strong capital injection, meeting the new rules will be a heavy lift.

Reports reaching DocuNews Central show that the two banks are now in early discussions to join forces. If successful, the new bank could instantly become one of the largest in Nigeria’s financial market.

Has the CBN Approved This Merger?

This is where the story gets tricky. Some posts online claim that the CBN has already approved the Polaris–Keystone merger.

But fact-checks show that this is not true yet.

Yes, the CBN has approved other mergers in the past, like the one between Unity Bank and Providus Bank in August 2024.

But for Polaris and Keystone, the process is still at the talk stage. No official approval has been announced by the apex bank.

A Race Against Time

The deadline for recapitalisation is March 31, 2026. That might look far away, but in banking terms, it is very close.

Bank mergers and capital raises take time. They involve:

Shareholder approvals.

CBN approvals.

Due diligence and restructuring.

Integration of systems and staff.

If banks wait too long, they could miss the window. And missing the window could mean losing their licence.

What This Means for Customers

For everyday customers of Polaris and Keystone, there is no need to panic.

Your money remains safe.

Services continue as normal.

If a merger happens, accounts and services will likely be merged, but the goal is to make things smoother, not harder.

CBN has always said that depositor funds are safe and that no Nigerian will lose their money because of the recapitalisation drive.

The Bigger Picture

This recapitalisation reminds many Nigerians of the famous 2004–2005 banking reforms under Prof. Charles Soludo. Back then, banks were asked to raise their capital to ₦25 billion, which led to several big mergers.

Today, the scale is much larger — hundreds of billions. But the aim is the same:

Fewer but stronger banks.

A safer financial system.

More trust for investors and customers.

Conclusion

The possible Polaris–Keystone merger is one of the biggest moves to watch in Nigeria’s banking industry.

It shows how serious the recapitalisation challenge is.

It also shows that banks are already preparing for a future where only the strongest can stand tall.

For now, we wait for official word from the CBN. Until then, Nigerians can expect more talks, more rumours, and more moves in the banking space.

📢 Stay with DocuNews Central for updates.
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