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Just IN : All Banks in frantic moves to put recapitalisation plans on course ahead of the CBN April 30 deadline
Banks are holding a string of meetings to finalise their recapitalisation plans ahead of the April 30 deadline for the submission of their implementation strategies to the Central Bank of Nigeria (CBN).
The implementation/ work plan will detail how each of the banks intends to achieve its new minimum capital requirement within the two-year timeline stipulated by the apex bank.
The details which will cover the two-year compliance period ending March 31, 2026, comprise step-by-step activities, transactional details, instruments and other options.
The CBN last month released a circular on review of minimum capital requirement for commercial, merchant and non-interest banks. It increased the new minimum capital for commercial banks with international affiliations, otherwise known as mega banks, to N500 billion; commercial banks with national authorisation, N200 billion and commercial banks with regional license, N50 billion.
Others included merchant banks, N50 billion; non-interest banks with national license, N20 billion and non-interest banks with regional license will now have N10 billion minimum capital. The 24-month timeline for compliance started yesterday and ends on March 31, 2026.
Banks’ insiders told The Nation yesterday that directors of the banks and professional parties were making final adjustments of market-based values and timelines.
They said about one-third of banks plan to increase their capital base mainly raising their capitals adequacy, while others outline prospects for combination of capital raise and mergers /acquisitions.
Two banks are said to be considering downgrade of their licences as final options in addition to prospects of mergers and acquisitions.
While all the tier 1 banks appeared confident of raising the required funds on a stand alone basis, they also indicated their preparedness to explore acquisition of small banks.
Living On The Margins
According to timelines of activities, about seven banks are expected to float their share offerings in the second half of this year. The capital market is expected to be busier in 2025.
An investment banking advisor said many big banks were seeking to raise more-than-needed funds in order to be in a position to cherry-pick when the recapitalisation fever pitches in mid-2025.
Under the new recapitalisation framework, banks have three broad options of injection of new equity capital, mergers and acquisitions and upgrade or downgrade of licence authorisation.
A source confirmed that Jaiz Bank has successfully scaled the recapitalisation hurdle with nearly N9 billion in excess of its national non-interest banking new capital requirement of N20 billion.
Jaiz Bank had closed 2023 with share capital and share premium of N18.62 billion. Multiple parties in the know said the bank has raised additional N10.05 billion through a recent private placement of 10.048 billion ordinary shares of 50 kobo each at N1 per share.
Investors scramble for banks’ shares on dividend expectations
It has also secured preliminary approvals to float a rights issue of about 5.41 billion ordinary shares of 50 kobo each at offer price of N1 per share. This may take the bank’s minimum capital base, under the new definition, to more than N34 billion.
A source close to the bank said it could consider acquisition and “other strategic investments” where the offers align with its growth objectives.
Shareholders of Access Holdings at the weekend mandated the company to raise $1.5 billion and N365 billion in a multi-tranche, multi-currency and multi-instrument capital raising plan.
The N365 billion rights issue is expected to be the main plank of the recapitalisation plan, while the $1.5 billion foreign-denominated issuance, which broad mandate also includes equity offering, places the group, with a bold acquisition records, in position to play big in the mergers and acquisitions market.
Access Holdings already has share capital and share premium of N251.81 billion, with about N248 billion to meet its international authorisation category of N500 billion.
Shareholders of four of Nigeria’s largest banks- Zenith Bank, Guaranty Trust Holding Company (GTCO), United Bank for Africa (UBA) and Stanbic IBTC Holdings Plc– are scheduled to meet next month to approve recapitalisation plans involving about N3 trillion.
Zenith Bank, which is rounding off conversion to holding company structure ahead of the recapitalisation, is seeking a broad mandate to double its issued share capital. The bank is creating new 3.4 billion ordinary shares of 50 kobo each for a multi-layered capital raising exercise that could see the bank with nearly N1 trillion.
GTCO is seeking shareholders’ approval for a $750 million multi-tranches, multi-instrument capital raising. The group is creating new 15 billion ordinary shares of 50 kobo each for its new share issuance programme.
UBA, which has called a meeting later next month, is seeking approval to create additional 10.8 billion ordinary shares of 50 kobo each for issuance to both domestic and foreign investors.
Fidelity Bank, which has a subsisting recapitalisation exercise, is expected to roll out additional recapitalisation measures.
FBN Holdings, which had secured earlier approval to raise some N150 billion, at the weekend cancelled an extraordinary general meeting called to consider a N300 billion capital raising plan. Market analysts expected FBN Holdings to review its recapitalisation plan upward.
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National Credit Guarantee Company Limited: Powering Inclusive Growth Through Risk-Sharing Guarantees
The National Credit Guarantee Company Limited (“NCGC” or the “Company”) is set to commence operations on 01 July 2025, as a specialised financial institution established to unlock access to credit and drive inclusive economic growth across Nigeria’s real economy. With an initial capital commitment of ₦100 billion, recently announced by President Bola Ahmed Tinubu, the NCGC is positioned to reshape how Micro, Small and Medium Enterprises (MSMEs), manufacturers, and strategic sectors access much-needed financing.
For decades, Nigerian businesses especially micro, small and medium scale enterprises have faced significant challenges accessing loans due to collateral barriers and high-risk perception. NCGC is bridging that gap. By providing partial credit coverage, the company will offer banks and other financial institutions a safety net, allowing them to lend more confidently to eligible borrowers, particularly in underserved and high-growth sectors.
NCGC does not lend directly to businesses. Instead, it partners with Participating Financial Institutions (PFIs) including commercial banks, microfinance banks, fintechs, CBN-licensed institutions and other development financial institutions to share lending risk and support broader financial inclusion. The model is simple but powerful: enable lenders to do more by reducing the risk that prevents them from reaching viable, underfunded borrowers.
Key Beneficiaries
NCGC’s framework targets a wide range of beneficiaries:
· MSMEs across all regions
· Local manufacturers and value chain operators
· Credit consumers
· Youth and women-led enterprises
· Export-oriented and non-interest-based businesses
· Large enterprises within priority sectors
Our Core Services
NCGC offers three primary services:
· Partial Credit Guarantees – Covering up to 60% of outstanding principal on qualifying loans.
· Co-Guarantees – Collaborating with other institutions to jointly share lending risk.
· Technical Assistance – Providing capacity-building support for lenders and borrowers to enhance credit readiness and portfolio quality.
Guiding Principles
The company’s operations are underpinned by globally accepted credit risk-sharing principles:
· Risk-sharing, not risk transfer
· Strategic issuance to preserve borrower discipline
· Tiered eligibility to promote inclusion and developmental impact
· Full alignment with CBN regulations
These principles ensure every guarantee issued is responsible, irrevocable, and impact-driven.
Product Suite
NCGC offers a diverse set of guarantee products:
· Individual Guarantees – For high-value, project-specific loans.
· Portfolio Guarantees – For pool of loans in homogeneous sectors (e.g., agro-processing, creative economy).
· Performance Bond Guarantees – For businesses seeking to meet contract-based obligations.
Sectoral Coverage
Our guarantees are available across critical sectors including:
· Agriculture & Agribusiness – From inputs to processing and logistics.
· Renewable Energy & Green Economy – Including solar, clean tech, and mini-grids.
· Manufacturing & Infrastructure – Targeting value-added production and light industry.
· Digital & Tech Enterprises – Including startups, fintechs, SaaS, and logistics tech.
· Solid Minerals and Metal – Metal fabrication, recycling, beneficiation, coating, etc.
· Textile – Fashion, leather works, jewelry
· Export-Oriented SMEs – Especially in non-oil sectors.
· Women & Youth Enterprises – Including all women-owned businesses (promoter age not more than age 65).
· Islamic Enterprises (coming soon) – Non-interest, Shariah-compliant financing models.
A New Era of Credit Confidence
NCGC is more than just a financial institution; it is a catalyst for Nigeria’s economic transformation. By incentivizing lenders to serve more businesses safely and sustainably, NCGC is enabling job creation, driving productivity, and fostering a more self-reliant economy.
Its operational model is built to:
· Unlock access to finance for real sector growth
· Create jobs and alleviate poverty
· Drive inclusive economic outcomes
· Strengthen the MSME ecosystem
· Build trust and scale in Nigeria’s credit markets
Left: Founder, Chief Responsibility Officer, Ruff ‘n’ Tumble/ Founder, Betti-O School of Fashion, Adenike Ogunlesi; Managing Director/Regional Executive, Ecobank Nigeria, Bolaji Lawal and Lagos State First Lady, Her Excellency, Dr. Ibijoke Sanwo-Olu at the ongoing Adire Lagos Exhibition Fair holding at Ecobank Pan African Centre, Lagos
Ecobank Nigeria has officially launched the much-anticipated fourth edition of its Adire Lagos Exhibition Fair, a vibrant cultural and commercial event dedicated to promoting Nigeria’s indigenous fashion industry and supporting Small and Medium Enterprises (SMEs). The four-day fair runs from June 5 to 8, 2025, at the Ecobank Pan African Centre, 270B1 Ozumba Mbadiwe Avenue, Victoria Island, Lagos. Visitors are welcomed daily from 10:00 AM.
Over 130 vendors are showcasing a diverse range of Adire designs, fashion items, and lifestyle products. The fair attracts a wide audience, including fashion enthusiasts, cultural professionals, creatives, entrepreneurs, and shoppers from across Nigeria and beyond.
Notable dignitaries who have so far graced the fair include the Lagos State Commissioner for Tourism, Arts and Culture, Mrs. Toke Benson-Awoyinka, who represented the Lagos State Governor, Babajide Sanwo-Olu; Lagos State First Lady, Her Excellency Dr. Ibijoke Sanwo-Olu; the wife of the former Ekiti State Governor,Erelu Bisi Fayemi ; Ogun State Commissioner for Women Affairs and Social Development, Mrs. Adijat Motunrayo Adeleye-Oladapo; former Chairman of Ecobank Transnational Incorporated, Emmanuel Ikazoboh; founding President of the FinTech Association of Nigeria (FANI), Dr. Segun Aina; and the owner of Nike Art Gallery, Nike Davies-Okundaye, among others.
Omoboye Odu, Head of Small and Medium Enterprises at Ecobank Nigeria, expressed delight at the strong turnout, stating, “This year’s exhibition promises a dynamic blend of established brands and emerging designers who embody innovation, cultural pride, and export potential.” She further emphasized the fair’s role as a major Corporate Social Responsibility (CSR) initiative by Ecobank.
“The Adire Lagos Exhibition Fair is a key CSR initiative, offering SMEs a platform to showcase their products free of charge while fostering economic growth and national unity. Last year’s event attracted over 20,000 visitors in four days, with one vendor making N30 million in sales—equivalent to six months’ revenue—demonstrating the fair’s strong commercial potential.”
Exhibitors also praised the growing appeal of Adire designs. Ms. Fadilat Lawal, Managing Director of Sanyaolu Trading Stores, Abeokuta, highlighted the durability and cultural symbolism of Abeokuta Adire. Ms. Cynthia Uma, Creative Director of Cecesignature Unisex Clothing, Lagos, emphasized Adire’s growing global recognition as a revenue driver for her business.
The Adire Lagos Exhibition Fair continues to serve as a premier platform for celebrating Nigeria’s cultural heritage while empowering local artisans and entrepreneurs to thrive.
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3.214 billion shares : Continuation From Print Nigerian stock market sees significant dip in transactions
Stock market investors traded 3.214 billion shares worth N76.348 billion in 64,156 transactions on the floor of the Exchange during the week.
This is compared to 3.794 billion shares valued at N119.394 billion that exchanged hands last week in 89,636 deals.
Consequently, the value of transactions traded by investors on the Exchange dropped by 56.4 per cent.
Meanwhile, market opened for four trading days during the week as the Federal Government declared Friday, June 6 and Monday, June 9, as public holidays to commemorate 2025 Eid-el-Kabir celebration.
The Financial Services led the activity chart with 2.313 billion shares valued at N52.241 billion traded in 27,326 deals.
This contributed 71.96 per cent and 68.43 per cent to the total equity turnover volume and value respectively.
The ICT industry followed with 301.996 million shares worth N5.026 billion in 4,137 deals.
The third place was the Consumer Goods Industry, with a turnover of 144.538 million shares worth N5.632 billion in 8,093 deals.
Trading in the top three equities namely Fidelity Bank Plc, Legend Internet Plc and Guaranty Trust Holding Company Plc accounted for 1.545 billion shares worth N34.446 billion in 4,939 deals.
This contributed 48.06 per cent and 45.12 per cent to the total equity turnover volume and value respectively.
The NGX All-Share Index and Market Capitalisation appreciated by 2.57 per cent to close the week at 114,616.75 and N72.275 trillion respectively.
Similarly, all other indices finished higher with the exception of NGX ASeM Index which closed flat.
Fifty-three equities appreciated in price during the week, lower than 56 equities in the previous week.
Forty-three equities depreciated in price, lower than 44 in the previous week, while 52 equities remained unchanged, higher than 48 recorded in the previous week.
The top five decliners for the week are: Associated Bus Company, Julius Berger, Legend Internet, Livestock Feeds and E-Tranzact International as they lost 55k, N18.50, 82k, N1.15 and 80k respectively.
Oando Plc, Lasaco Assurance Plc, Multiverse Mining, Cornerstone Insurance and First Holdco were the top five gainers for the week, as they grew in 25.77 per cent, 21.62 per cent, 20.39 per cent, 19.51 per cent and 17.60 per cent respectively.
The companies gained N11.65, 56k, N1.55, 64k and N4.40 respectively.
The May 2025 Issue of the Federal Government of Nigeria,Savings Bonds were listed on the Nigerian Exchange Ltd on Thursday
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