The Access Holdings Plc is the parent company of Access Bank of Nigeria. The financial holding company has just become the first financial holding company in Nigeria to meet the Central Bank of Nigeria’s (CBN) minimum capital requirement of N500 billion.
CBN announced new minimum capital requirements for banks in March 2024, with the goal of making banks more resilient and strengthening the country's financial system. According to the CBN’s directive, banks with international authorization must have a minimum capital base of N500 billion ($327 million).
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Banks with national authorization must have a minimum of N200 billion, and banks with regional authorization must have a minimum of N50 billion.
Merchant banks with national authorization must have a minimum capital of N50 billion. National non-interest banks must have a minimum capital of N20 billion, and regional non-interest banks must have a minimum of N10 billion.
However, Access Holding achieved this requirement following the successful completion of a rights issue, which raised N351 billion and increased the bank’s share capital to N600 billion. The rights issue involved 17.77 billion ordinary shares priced at N19.75 per share.
Access Bank was the first of the FUGAZ to embark on a right issue in 2024. The bank confirmed the meeting of CBN’s minimum capital requirements to investors in a recent notice that it successfully raised N351 billion which give it an opportunity to surpass the CBN’s N500 billion minimum capital requirement.
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Now, with full regulatory approval from the CBN and the Securities and Exchange Commission (SEC), Access Holdings exceeded the CBN’s capital threshold by N100 billion, well ahead of the March 2026 deadline for banks with international authorisation.
The company used the NGX E-offer platform to conduct the rights issue, making it easier for shareholders to participate. According to Access Holdings, this platform ensured a smooth and efficient process, reducing barriers for investors.
The success of the rights issue reflects the confidence of shareholders in the company’s future. Aigboje Aig-Imoukhuede, Chairman of Access Holdings, highlighted this confidence in a statement.
He noted that the success of the rights issue demonstrates the resilience of Nigeria’s capital market and reinforces shareholders’ belief in the company’s value and growth potential.
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Despite being Nigeria’s largest financial services firm, Access Holdings has often lagged behind its peers in share price performance and dividend yield. Its share price started the year at about N25 and is currently trading at N24.4, representing a 23% increase from the rights issue price.
The rights issue was announced on July 7, 2024, and allowed shareholders to purchase one new share for every two held as of June 7, 2024.
Due to nationwide protests disrupting business activities, the closing date was extended from August 14 to August 23, giving all interested shareholders ample opportunity to participate. This marks a significant milestone in the company’s 2023–2027 strategic plan.
The CBN gave banks until March 31, 2026 to meet the new requirements. Other banks will be making haste to meet up by all possible means. To help banks meet the requirements, CBN recommended options such as;
- Injecting fresh equity capital through private placements, rights issues, or offers for subscription.
- Merger and acquisition like the one we see in Providus Bank and Unity Bank PLC which CBN approved in August 2024.
- Upgrading or Downgrading License authorization.
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Lastly, CBN is using the imposed bank’s capitalization requirement to ensure that each financial institution in Nigeria has adequate capital that is commensurate with the risk profile, scale, and scope of its operations in the country.
