Nigeria Five Nigerian Banks Strengthen Recapitalisation Efforts to Meet CBN Rules

Five major Nigerian banks, including FirstHoldCo, Wema Bank, and Fidelity Bank, are advancing their recapitalization efforts to meet the CBN’s capital requirements. These initiatives aim to strengthen financial stability, boost investor confidence, and drive sector growth. Analysts predict well-capitalized banks will enhance liquidity, expand operations, and sustain long-term resilience.

Five major Nigerian banks are making significant strides in their recapitalization efforts to meet the Central Bank of Nigeria’s (CBN) minimum capital requirements. These banks have intensified fundraising initiatives, strengthening their financial positions and bolstering investor confidence.

Key Developments:

• FirstHoldCo (FirstBank): Completed a N150 billion Rights Issue, oversubscribed by 25%, with plans for a N350 billion Private Placement.
• Wema Bank: Aims to raise N200 billion, comprising a N150 billion Rights Issue awaiting SEC approval and a N50 billion Private Placement starting April 2025.
• Fidelity Bank: Entered the second phase of its capital raise through a Private Placement approved by the CBN.
• UBA: Expected to announce its recapitalisation strategy before mid-2025.
• Access Holdings & Ecobank: Preparing additional capital-raising initiatives.

Analysts believe these efforts will enhance financial stability, drive expansion, and ensure compliance with regulatory mandates. However, the banking sector’s performance remains mixed, with fluctuations in the NGX Banking Index. Despite market volatility, well-capitalised banks are expected to thrive, fostering innovation and long-term resilience in Nigeria’s financial sector.