The ongoing recapitalisation drive in Nigeria’s banking sector continued this week, with several banks making progress on their capital-raising plans. While no major new announcements were made, banks largely maintained their previously disclosed strategies, focusing on securing regulatory approvals and moving into the next phases of their fundraising efforts.
Wema Bank’s N200bn Capital Raise Moves Forward
Wema Bank reaffirmed its plan to raise N200bn in fresh capital, consisting of a N150bn Rights Issue and a N50bn Private Placement Exercise. The Rights Issue is still awaiting approval from the Securities and Exchange Commission (SEC), while the Private Placement is set to commence this week.
First Holdco and Fidelity Bank Advance Fundraising Efforts
Market sources indicate that First Holdco is proceeding with its N350bn Private Placement, marking a critical stage in its capital-raising journey. This follows the oversubscribed N150bn Rights Issue, which attracted 25% more subscriptions, totaling N187.6bn.
Similarly, Fidelity Bank is moving forward with its recapitalisation agenda. Having secured Central Bank of Nigeria (CBN) approval, the bank is preparing to launch its second phase, a Private Placement expected in H2 2025.
UBA and Access Holdings Set for Key Announcements
UBA is expected to unveil its recapitalisation strategy before the end of H1 2025, potentially following its Annual General Meeting (AGM). Market analysts anticipate that the bank will outline its plans in response to new regulatory capital thresholds.
Meanwhile, Access Holdings is gearing up to announce the second phase of its capital-raising initiative, reinforcing its position as one of Nigeria’s largest financial institutions.
Ecobank Nigeria to Provide Further Details
Ecobank Nigeria is also expected to release additional updates regarding its recapitalisation strategy, ensuring compliance with CBN regulations. The bank is reportedly finalising the specifics of its capital raise to strengthen its financial base.
Sector-Wide Implications and Future Outlook
As Nigerian banks work to meet CBN’s new capital requirements, analysts note that successful capital raises will be crucial in shaping the industry’s competitive landscape. Banks with stronger capital positions will be better placed to:
• Expand their market presence.
• Innovate with new financial products.
• Strengthen their risk management frameworks.
With capital-raising efforts well underway, the industry is set for a transformative period, with well-funded banks likely to emerge stronger and more resilient.
