Five Nigerian banks make progress in recapitalisation efforts

FIVE major Nigerian banks have made progress in their recapitalization efforts, moving closer to meeting the Central Bank of Nigeria’s (CBN’s) minimum capital requirements.

The banks have ramped up fundraising initiatives to strengthen their financial positions, boosting investor confidence and reinforcing stability in the banking sector.

FirstHoldCo, the parent company of FirstBank, recently concluded its N150 billion Rights Issue, which was oversubscribed by 25 percent, bringing total subscriptions to N187.6 billion.

The group now plans to proceed with a N350 billion Private Placement to further bolster FirstBank’s capital base, support innovation, and drive sustainable growth.

Wema Bank has announced plans to raise N200 billion in fresh capital. This includes a N150 billion Rights Issue, currently awaiting approval from the Securities and Exchange Commission (SEC), and a N50 billion Private Placement, set to commence on April 1, 2025. The latest round follows a successful first tranche, which raised N40 billion.

Fidelity Bank is also advancing its recapitalization agenda. It has entered the second phase of its capital raise, with a Private Placement approved by the CBN. The offering is expected to launch in the second half of 2025.

Market intelligence suggests that UBA will officially announce its recapitalization plans before the end of the first half of 2025, likely following its Annual General Meeting (AGM).

Similarly, Access Holdings is set to unveil the second tranche of its capital-raising initiative, while Ecobank Nigeria is expected to release further details on its recapitalization strategy in compliance with CBN regulations.

Analysts from Proshare Research believe that Nigerian banks are demonstrating strong adaptability to the new regulatory capital thresholds.

The success of these capital-raising efforts will be critical in shaping the competitive landscape, as well-capitalized banks will be better positioned for expansion, innovation, and long-term stability.

Despite these positive developments, the NGX Banking Index closed the week with a 0.03 percent decline, settling at 1,098.39 points. Performance across Tier 1 and Tier 2 banks remained mixed.

Meanwhile, UBA emerged as the top gainer with an 8.24 percent increase, followed by Ecobank (5 percent) and Zenith Bank (0.22 percent). Access Holdings recorded the weakest performance, declining 7.34 percent.

Among Tier 2 banks, Wema Bank led with an 18.13 percent gain, followed by Stanbic IBTC (6.77 percent) and Fidelity Bank (2.29 percent). In contrast, Sterling Bank and FCMB fell by 5.18 percent and 4.26 percent, respectively.

As Nigerian banks continue their recapitalization efforts, investor confidence remains high, with expectations that stronger capital bases will drive growth, enhance liquidity, and solidify the sector’s resilience in the face of economic challenges.

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