Nigerian bank, Access Bank Plc has raised N351 billion ($228 million) in a rights offer to boost its capital as part of ongoing recapitalisation efforts directed by the Central Bank of Nigeria (CBN).
This has pushed the bank’s share capital to N600 billion, 20 per cent above the N500 billion minimum required for international banks operating in Nigeria.
Access Bank, a Tier-1 bank, will use some of the proceeds to fortify its expansion plans with a presence firmly across Africa and some countries in Europe.
Access Bank offered 17.7 billion new ordinary shares at N19.75 each and will use the funds to further its nationwide and global expansion plans.
It will invest 65 per cent of the raised capital to grow its loan book, spend 20 per cent to upgrade its infrastructure and the remaining 20 per cent will be used to set up new branches across the country.
According to the bank, the fresh capital inflow has received regulatory approvals from both the CBN, the banking regulator and the Securities Exchange Commission (SEC), the capital market regulator.
The banking regulator in March 2024 announced new minimum capital requirements for Deposit Money Banks (DMBs), Microfinance Banks (MFBs) and other financial institutions in the country.
The CBN said that banks with international operations, like Access Bank, would be required to increase their capital base from N25 billion to N500 billion, while banks with national banking licences must have at least N200 billion.
This means lenders like Fidelity, GTCO, and Zenith Bank with international presence, have to recapitalise to N500 billion.
The lenders were given the end of the first quarter of 2026 to meet the new lowest capital requirement, but must within a month present their blueprint on how they intend to raise funds for this process.
The last time the banking sector was recapitalised was in 2005 under the then Governor and now current Governor of Anambra State, Mr Charles Soludo.
