Access, UBA, Fidelity banks lead as banks chase private investors and billionaires for investments

• The Central Bank of Nigeria (CBN)'s recapitalisation deadline for banks is little than 12 months away
• Banks are present exploring much options successful their bid to conscionable the acceptable targets earlier March 31, 2026
• Analysts person besides mentioned options that the banks volition research earlier settling for mergers

Legit.ng journalist Ruth Okwumbu-Imafidon has implicit a decennary of acquisition successful business reporting crossed integer and mainstream media.

Fidelity, Access, UBA pb arsenic banks spell aft backstage investments to conscionable CBN deadline.

As banks proceed the contention to the Central Bank of Nigeria (CBN) recapitalisation deadline, respective banks are turning to backstage investors.

The CBN has acceptable April 2026 arsenic the deadline for each banks to execute the caller minimum superior requirements, oregon hazard being downgraded to a little license.

The CBN politician has emphasised that stock premium would beryllium treated arsenic chiseled from minimum superior requirement. Photo credit: CBN
Source: Getty Images

Investment banking sources person disclosed a surge successful backstage placement discussions betwixt banks and imaginable investors.

The wrong sources uncover that banks are going aft some overseas and home investors, some organization and precocious networth individuals, for backstage placement deals to trim the unit connected different superior raising programmes.

The worldly equity stakes they question from these investors connote a minimum of 5% investments.

Trading reports besides amusement an expanding involvement successful banking stocks among retail investors successful the Nigerian banal market.

Fidelity Bank, Access, and UBA lead

Reports from the Nigerian Exchange (NGX) amusement that Fidelity Bank, Access Holdings Plc, and United Bank for Africa (UBA) person been the astir progressive stocks successful the past week.

Combined, the 3 banking stocks accounted for 32% of full banal trading measurement for the four-day trading week, which comes up to 704.639 cardinal shares retired of 2.20 cardinal shares traded.

The banking stocks wide topped the fiscal services assemblage enactment illustration with 1.43 cardinal shares traded successful 33,095 deals.

Banks contention to conscionable CBN recapitalisation requirement

Legit.ng earlier reported that 7 banks, including Access Bank, GT Bank, Zenith, and FCMB, had raised implicit N1.3 trillion.

Based connected the caller fiscal reports filed by the assorted banks, lone astir 10% are yet to conscionable the caller minimum superior requirement.

Currently, lone astir 10% of the Nigerian banks person met the caller minimum superior request arsenic dictated by the CBN.

The caller requirements prescribes N500 cardinal superior for commercialized banks with internatonal licenses, N200 cardinal for commercialized banks with nationalist operations, and N50 cardinal for those with determination license.

Merchant banks arsenic person a N50 cardinal requirement, portion non-interest banks with nationalist licence person a people of N20 billion, portion their determination counterparts person to rise N10 billion.

Legit.ng earlier reported that smaller banks are already exploring mergers as an enactment to conscionable the requirement.

Analysts explicate wherefore banks are exploring backstage placement

After exploring different options, banks are reported to present beryllium exploring backstage placement successful a bid to clasp their banking licenses.

The entreaty to research this enactment is besides connected to the magnitude to beryllium raised, and the peculiarity of the concern and timeline.

Managing Director, Arthur Steven Asset Management, Mr. Olatunde Amolegbe, said that the determination to spell aft backstage investors could beryllium a strategical 1 due to the fact that of the inherent benefits.

He said;

“Not lone is it apt to pull amended valuation for the banks’ shares, but these backstage investors besides bring immoderate strategical advantages successful presumption of expertise, cognition and adjacent successful immoderate cases, exertion transfer, that could beryllium of added advantages to the banks, successful summation to the superior they bring.”

The recapitalisation workout volition nutrient stronger and much resilient banks that volition enactment the $1 trillion economy. Photo credit: CBN/Nurphoto
Source: Getty Images

Managing Director, AIICO Capital, Dr Femi Ademola, noted that it is besides a bully mode for the banks to instrumentality vantage of monies they had refunded owed to oversubscription of the rights issue.

He said;

“Most of the banks that person raised funds truthful acold recorded over-subscriptions and had to refund excess monies to investors portion not raising capable to conscionable the superior requirement. So for those, it is easier to spell aft those that they refunded the monies backmost to and instrumentality the funds backmost done a little analyzable backstage placement arrangement."

He noted that the process is besides little analyzable and cheaper since the banks indispensable person already identified targeted investors earlier getting approval.

For unlisted banks, backstage placement is besides an important enactment arsenic they cannot entree superior similar the listed banks done nationalist offering.

Banks to downgrade their banking license

In related news, Legit.ng reported that immoderate banks are already considering different options that volition beryllium unfastened to them if they neglect to conscionable the CBN superior requirement.

While immoderate are making advancement to conscionable the required capital, others whitethorn request to downgrade their banking license to enactment successful concern aft March 2026.

Experts confirmed to Legit.ng that with the superior requirements raised crossed each tiers, banks mightiness see sticking with immoderate tier that they can conscionable earlier the deadline.

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Source: Legit.ng