This week’s recapitalisation watch draws insights from our latest Tier 1 Banks Report, which shows capital-raising efforts among Nigerian banks in response to the Central Bank of Nigeria’s (CBN’s) capital requirements. We review the recapitalisation status of selected banks regarding their capital raise programmes.  

• The UBA rights issue was oversubscribed with N251bn, which has been verified and approved by the Central Bank of Nigeria (CBN). Given that it is a rights issue, the bank could only take up N240bn, raising its capital to N355.2bn. Plans are to obtain the balance of N144.8bn later in the year. However, the Chairman of the bank, Tony Elumelu, acquired a total of 1,267,669,350 shares at an average price of N34.64 per share, bringing the total value of shares bought to N43.91bn.
• Abbey Mortgage Bank board of directors has approved plans to raise N100bn by offering shares, either through a rights issue or a public offering, as well as through various financial instruments. The capital raised will allow the bank to meet the minimum capital requirement necessary for its transition from a primary mortgage bank to a regional commercial bank. This aligns with the Central Bank of Nigeria's (CBN) minimum capital requirement of N50bn.
• First Holdco is set to proceed with its N350bn Private Placement, representing the next phase of its capital-raising programme. This follows the successful completion of its N150bn Rights Issue, which was 25% oversubscribed, bringing the total subscription to N187.6bn. However, the Chairman of the Group at the AGM remained positive that First HoldCo will raise the capital required ahead of the CBN deadline.
• Access Holdings has met the regulatory minimum capital threshold for banks with international licenses following the conclusion of its Right Issue of 17,772,612,811 ordinary Shares of 50 Kobo each at N19.75 Kobo per share, raising the target amount of N351bn. This development has positioned Access Bank Plc as the first bank to meet the Central Bank of Nigeria’s (CBN’s) N500 billion minimum capital requirements for banks with International Authorisations ahead of the March 2026 regulatory deadline.
• Wema Bank Plc’s Rights Issue of 14,286,785,417 ordinary shares of 50 Kobo each at N10.45 per share closed last week, May 21, 2025. At the Bank 2024 AGM, the Managing Director, Mr. Moruf Oseni, stated that the bank has met the complete recapitalisation requirement, subject to a CBN capital verification process. A resolution was passed at the AGM to raise an additional N50bn which the bank is expected to have a qualifying capital of N267bn.
• Zenith Bank Plc has also met its capital requirement after reporting a strong performance at its Annual General Meeting (AGM) held on April 29, 2025. It announced a 160% subscription to its combined Rights Issue and Public Offer. The bank’s share capital is now N614bn.
• Fidelity Bank has advanced its recapitalisation plans, moving into the second phase with a Private Placement that has received Central Bank of Nigeria (CBN) approval to meet the remaining minimum capital requirement. It is expected to commence in the second half (H2) of 2025.
• Unity Bank's ongoing engagement and proposed business combination with Providus Bank has prevented it from announcing the status of its recapitalisation efforts.

Analysts at Proshare note that investors' response to bank recapitalisation has been enthusiastic. The success of some of the offers reflects market confidence in the stability and long-term growth of banks. However, the ongoing and forthcoming offers, particularly those of Wema Bank, UBA, and Fidelity Bank, will be critical in determining the overall pace of recapitalisation across the sector (see Table 1 below). 

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