NIGERIA’S banking sector has recorded encouraging developments in its ongoing recapitalisation efforts as of April 25, 2025.
The Central Bank of Nigeria’s (CBN) initiative aimed at strengthening the financial stability and resilience of banks appears to be yielding positive results, with lenders demonstrating increased commitment to meeting the revised capital requirements.
This progress is expected to enhance the overall health and competitiveness of the banking industry, ultimately contributing to the country’s economic growth and financial system stability.
According to Proshare Research’s banks recapitalisation watch, Wema Bank Plc’s Rights Issue to raise N150 billion by issuing 14,286,785,417 ordinary shares at N10.45 per share is currently ongoing.
The offer was structured on the basis of two new shares for every three ordinary shares held. The new shares are available to shareholders whose names were on the register at the close of business on Wednesday, March 5, 2025.
Similarly, at the bank’s 63rd Annual General Meeting (AGM), the Chairman of UBA, Tony Elumelu announced plans to raise N144.8 billion in the third quarter of 2025. This capital raise is intended to bolster the bank’s current capital base of N355.2 billion in order to meet the N500 billion minimum capital requirement. With this success, UBA’s capital now stands at N355.2 billion. The remaining N144.8 billion needed to meet the regulatory threshold will be raised later this year, and the proceeds from the rights issue will be invested in new technologies and business growth initiatives in Nigeria, across Africa, and globally. This will further strengthen the group’s seven decades of impressive performance.
Zenith Bank Plc is expected to inform shareholders about the second phase of its recapitalisation plans during its AGM, scheduled for April 29, 2025.
First Holdco is moving forward with its N350 billion Private Placement, marking the next phase of its capital-raise program. This follows the successful completion of its N150 billion Rights Issue, which was oversubscribed by 25 percent, bringing total subscription to N187.6 billion. Fidelity Bank has also advanced its recapitalisation plans, moving into the second phase with a Private Placement that has received CBN approval and is expected to commence in the second half of 2025.
Analysts at Proshare observe that Nigeria’s banking sector has demonstrated strong adaptability in navigating the evolving regulatory landscape following the CBN’s directive on new share capital requirements. The ongoing capital mobilization efforts are expected to reshape the industry’s competitive dynamics. Banks that successfully meet the new requirements will gain a strategic advantage through improved financial resilience, higher investor confidence, and an enhanced capacity to fund innovation and regional expansion.
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