Guaranty Trust Holding Company Plc (GTCO) has taken a decisive step in Nigeria’s ongoing banking recapitalisation race, injecting ₦365.85 billion into its flagship subsidiary, Guaranty Trust Bank Limited (GTBank). The transaction, executed through a rights issue of nearly 7 billion ordinary shares, lifts GTBank’s share capital from ₦138.19 billion to ₦504.04 billion—comfortably surpassing the Central Bank of Nigeria’s (CBN) mandated minimum of ₦500 billion for internationally licensed commercial banks.
The capital raise was disclosed in a regulatory filing signed by Company Secretary Erhi Obebeduo and marks a key milestone in GTCO’s compliance with the CBN’s March 2024 directive. That directive requires commercial banks to meet new capital thresholds by March 2026, a reform aimed at strengthening the sector’s resilience amid persistent economic pressures, including the naira’s sharp devaluation, inflationary surges, and foreign exchange volatility.
With this injection, GTBank joins Access Bank and Zenith Bank in meeting the recapitalisation benchmark ahead of schedule, reinforcing its status as one of Nigeria’s most resilient tier-1 lenders. More importantly, it secures the bank’s international license, positioning it for deeper market penetration and global competitiveness.
According to GTCO, the additional equity will be deployed strategically across multiple fronts:
• Branch network expansion to capture new retail and corporate customers.
• Asset base growth, particularly loans, advances, and investment securities.
• Fortification of IT infrastructure, enhancing digital banking capabilities in an increasingly competitive fintech-driven market.
• Leveraging opportunities in Nigeria and other markets where GTBank maintains presence, particularly in West and East Africa.
The recapitalisation plan, which was approved at GTCO’s 2024 Annual General Meeting, was executed in two phases with full regulatory clearance. Post-allotment, GTCO retains 100% ownership of GTBank, ensuring streamlined governance and execution of its broader group strategy.
Sector analysts note that early compliance provides GTBank with a competitive edge, enabling it to pursue expansion opportunities while rivals scramble to raise capital through rights issues, private placements, or mergers. The move also underlines GTCO’s confidence in GTBank as its core revenue driver, especially as it seeks to balance traditional banking with its growing fintech and wealth management operations.
As the 2026 deadline looms, Nigeria’s banking sector is expected to witness consolidation, with weaker mid-tier lenders exploring mergers or acquisitions. For GTBank, however, the ₦365.9 billion boost represents not just compliance—but a springboard for growth, innovation, and regional dominance.
