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By Etim Etim

With only 15 months left for banks to meet the deadline for the new share capital benchmarks, the Central Bank has warned that the March 2026 deadline will not be shifted. Speaking to this writer, a CBN director said, ‘’the idea of extension or shift of the deadline does not arise. They were given more than two years to meet the new threshold, and by our calculations, that is enough time. We are not contemplating an extension’’.

So far, of Nigeria’s 36 lenders, only Access Holdings has concluded the capital raising exercise, bringing in a little over N351 billion from its Rights Issue of 17.772 billion shares that sold for N19.75 per share. The offer closed in August. With this, Access Bank has thus become the first to meet the CBN’s N500 billion minimum capital requirements for Banks with International Authorization well ahead of the March 2026 regulatory deadline. The bank’s share capital would increase to N600 billion, N100 billion above the regulatory minimum requirement.

For the other 35 banks, the next one year will be a crowded and busy period. A few have gone far while many others are yet to make appreciable progress. Some like the other four tier one lenders – GT; UBA; First Bank and Zenith – have already announced their offers, but are yet to conclude the process, others, especially the small regional and some national banks are still lagging behind. There have been a host of challenges, though, even among the big ones. FBN Holdings, the parent company of First Bank, has had its programme slowed down considerably by Boardroom crisis. The long drawn battle between Femi Otedola and Oba Otudeko for the control of the company has just been settled, with Otedola emerging chairman of the holding company. While Zenith Bank has had to juggle both capital raising with reconstituting itself into a holding company at the same time, GT Bank has just survived a major service disruption and customer backlash due to migration to a new IT platform.

To meet the new capital requirement, the banks are expected to go for public offers; rights issues; private placements; mergers and acquisitions or a combination of these. In terms of mergers and acquisitions, there are indications that two banks, Providus and Unity, are in talks to merge together. Both are national banks, but with a combined market share of less than 20 per cent in terms of deposit liabilities. Providus has a huge Lagos State shareholding just as Northern State governments hold huge interests in Unity Bank. ‘’That’s the only discussions in the market for now for mergers and acquisition; but I won’t be surprised if more candidates join the discussions in the next few months’’, said a senior executive of a bank.

Younger and better managed banks seem to be doing better generating new capital. Nixon Iwedi, executive director of Globus Bank said his bank is on track to meet the deadline. ‘’We are raising N150 billion through a private placement and Rights Issue. The first has been successfully completed and we are on the second phase now’’, he said, noting that they prefer to approach the process in a rather quiet and restrained manner. Globus has a national license and the minimum for this category is N200 billion.

For Access Holdings, the process has become quite a momentous. It has become the first Nigerian financial holding company to successfully execute a fully digital Rights Issue embracing the power of technology to improve access to equity capital market. By leveraging the NGX’s E-offer platform, the company provided its shareholders with a convenient and efficient subscription process, leading to the participation of many of its retail shareholders in addition to institutional investors. Speaking on the successful offer, Board Chairman Aigboje Aig-Imoukhuede, said: “The Access brand has always resonated strongly with the local and international capital markets. Since 2004, Access Bank has raised billions of dollars in capital to meet successive CBN recapitalization directives. We are pleased that this time we are the first to breast the tape. The success of the Rights Issue demonstrates the resilience of Nigeria’s capital market and reinforces our shareholders confidence in the present value and potential of our company’’.

While a few banks are already set on a course of action to meet the deadline, many others are still weighing their options. As a CEO pointed out to me, ‘’it is too early to understand the options that they would explore. It would become clearer as we get into the second half of 2025’’.

Nonetheless, the Nigerian capital market has once again demonstrated capacity and depth to meet the expectations of investors, issuers and professionals. We saw this during the indigenization programme of Gen. Yakubu Gowon; the privatization programme of Gen. Babangida and the consolidation programme of President Obasanjo. Its mutualization a decade ago also signified the market’s ability to adapt to change.