7 Nigerian Banks Raise N1.3 Trillion as Race to Beat CBN Recapitalisation Deadline Heats up

• About seven Nigerian banks are on track to meet the March 2026 recapitalisation deadline set by the Central Bank of Nigeria (CBN)
• The banks include Access Bank, Guaranty Trust Bank, Zenith Bank, FMCB, Sterling and Wema Bank, while UBA and Fidelity will announce their results later
• However, smaller banks are shunning public offerings, choosing alternative platforms to raise the required capital

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

With the March 2026 recapitalisation barely 14 months away, struggling banks are abandoning initiation public offerings (IPOs) for alternative fund-raising platforms due to regulatory hassles, tough listing requirements, and exorbitant transaction costs.

While marginal players have chosen strategic pitching and rights issues, tier-1 banks have scooped 100% of their targeted funds to scale the hurdle.

List of seven banks with N1.3trn apital

About seven banks have pooled a combined N1.32 trillion, using different approaches.

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The seven financial institutions include Access Holdings, GTCo, Zenith Bank, FCMB, Sterling and Wema Bank.

Reports say UBA and Fidelity Bank are expected to announce the results of their offerings in the coming weeks.

Wema Bank raises N40 billion

Wema Bank successfully raised N40 billion naira this month ahead of the planned recapitalisation by the Central Bank of Nigeria (CBN). 

In addition to this, the bank plans to pursue a share placement or public offer in advance, the bank's executive director announced. 

Tunde Mabawonku, its chief finance officer, told Reuters that the company's current share sale would close on December 29.

He said this would enable the bank to increase the current N90 billion in shareholder funds to N160 billion. 

From 16% in September, Mabawonku said its capital would hit 20% at the end of the rights issue in September. In 2021, its capital ratio was at 12%. 

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Access, Union Bank, Zenith, other banks begin implementation of PoS withdrawal limits

Experts expect UBA and First HoldCo, owners of First Bank, to beat the recapitalisation requirements.

Instead of public offerings, smaller banks are exploring rights issues, private placements and other variants.

Smaller banks explore other channels

The Guardian reports that such players like Providus, Globus, Premium Trust, Nova, Lotus, TAJ Bank, and other merchant banks would have gone public to help meet the recapitalisation requirements.

According to the report, smaller banks are exploring mergers, as Unity Bank and Providus Bank have struck a deal with the approval of the CBN.

The banks are required to increase their capital bases from 25 billion to N200 billion in compliance with regulatory mandates.

Experts believe that the lack of fresh offers is limiting growth and opportunities for new participants, with many investors having limited options.

First Bank announces new name, shareholders approve

Legit.ng earlier reported that First Bank of Nigeria (FBN) Holdings Plc has received approval to change the company’s name to First Holdco Plc.

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UBA, Zenith, Access, others finally cut rate on forex deposit as dollar improves

The company’s shareholders approved the name change at the 12th Annual General Meeting (AGM), held virtually on Thursday, November 14, 2024.

In a statement released over the weekend, Adewale Arogundade, the company’s secretary, confirmed that the resolution applies to all FBN Holdings' subsidiaries.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng