Nigerian Top Banks Plan to Recapitalise with $3bn

Lagos - By Andy BABATUNDE 

Publshed, Monday, April 15, 2024

FOUR MAJOR BANKS IN NIGERIA, FBN Holdings, Access Holdings, Guaranty Trust Holding Company Plc, and United Bank for Africa Plc, are planning to raise over $3.03 billion in fresh capital. 

Following a directive from the Central Bank of Nigeria to recapitalise, the banks aim to raise funds from both domestic and international markets. 

Thedispatch newspaper was informed that FBN Holdings plans to seek shareholder approval to raise N300 billion ($731 million) through public offerings, private placements, or rights issues. 

GTCO also aims to raise $750 million, while Access Holdings plans to raise $1.5 billion in both the Nigerian naira and US dollar. United Bank for Africa is also exploring strategies to boost its capital base. 

n addition to these tier-1 banks, smaller banks such as Wema Bank and Sterling Bank Limited have also embarked on recapitalisation. 

It is expected that mergers and acquisitions may occur as smaller banks struggle to meet the new regulatory requirements. 

The recent sell-offs in banking stocks on the Nigerian Exchange have led to a loss of about N633 billion ($1.5 billion) in market capitalisation.