Economy
The Strategic Benefits of Access Holdings’ Rights Issue for Investors
The Central Bank of Nigeria (CBN) on March 28, 2024, announced a two-year bank recapitalisation exercise, which commenced on April 1, 2024, and is expected to end on March 31, 2026. In line with this development, Access Holdings Plc, one of Nigeria’s largest financial institutions, announced plans to raise a staggering N351 billion through a rights issue.
The company has a capital raising programme of $1.5 billion, planned to be executed via equity, quasi-equity, and debt issuances. For investors, capital raising presents an opportunity to expand the company’s earnings window and improve returns on investment.
For the right issue, Access Holdings is offering 17.772 billion ordinary shares of 50 kobo each to existing shareholders at N19.75 per share. The offer opened on Monday, July 8, 2024.
The offer period, which was initially scheduled to close today, August 14, 2024, has now been extended to August 23, 2024. The extension followed the approval of the Securities and Exchange Commission (SEC).
Access Holdings extended the acceptance period for the rights issue, providing existing shareholders and other investors additional opportunity to participate in the new capital raising.
In a regulatory filing at the Nigerian Exchange (NGX), Access Holdings explained that the decision to extend was in response to the recent nationwide protest that disrupted the operations of businesses and individuals across Nigeria.
Stakeholders insist that the funds raised are expected to fortify the bank’s capital base, supporting its continued expansion and its ability to seize emerging opportunities in the financial sector.
The proceeds of the proposed Rights Issue would be used to support ongoing working capital needs including organic growth funding for its banking and other non-banking subsidiaries.
The plans for the programme were disclosed in the Group’s Notice of the 2nd Annual General Meeting held on April 19, 2024, which was published on the Nigerian Exchange portal on March 27, 2024.
Breakdown of the Rights Issue
With the rights issue, Access Holdings will see an expansion in its issued share capital from N17,772,612,811.00, divided into 35,545,225,622 ordinary shares, to N26,658,919,216.50.
This expansion is facilitated by the creation of an additional 17,772,612,811.00 ordinary shares, each priced at N0.50 Kobo, which will rank pari-passu with the existing shares of the company. Existing shareholders are to purchase one ordinary share for every two existing shares held.
The recapitalisation plan set by the CBN requires a minimum capital of N500 billion, N200 billion, and N50 billion for commercial banks with international, national, and regional licenses respectively.
Likewise, the CBN also raised capitalisation baseline for Merchant Banks (N50 billion) and Non-interest Banks (National: N20 billion and Regional: N10 billion).
The options for the banks include private placement, which allows lenders to seek new funds from pre-selected private investors and rights issue, which authorises them to invite existing shareholders to purchase additional shares in the bank at a discounted price relative to the current market price, among others.
Shareholders give nod to Access Holdings Rights Issue
Different groups of shareholders associations expressed their optimism on the ongoing rights issue by Access Holdings Plc.
They described Access Holdings as a forward-thinking financial institution with the right leadership and customer services to drive growth and profitability.
Shareholders said the ongoing capital raising exercise by the bank would lead to significant growth in operations and create higher value for all shareholders. The shareholders outlined Access Holdings’ track record of success as Nigeria’s most profitable lender, noting that the additional capital would scale up the output of the bank.
They described Access Holdings as a great financial institution that has consistently delivered good returns to shareholders.
They expressed their confidence that the bank will sustain its success trajectory success and payment of good returns to shareholders.
Chief Sunny Nwosu, founder and former National Coordinator of the Independent Shareholders Association of Nigeria (ISAN) advised Access Holdings to continue to live up to shareholders’ and other stakeholders’ expectations through quality service delivery and good returns on investment.
According to him, the rights issue will be oversubscribed given the bank’s records of performance and delivery on set targets.
Nwosu said Access Holdings remains a solid institution, which has over the years surpassed shareholders’ expectations and has what it takes to keep the flag flying higher.
“I do not think that Access Holdings will disappoint investors. They have consistently delivered and exceeded investors’ expectations, and this current offer will not be an exception,” he said.
He projected that the Access Holdings shares would record significant appreciation whereby investors would have something significant to take home now, and in the many more years to come.
Nwosu said he expects investor confidence to be sustained, as the institution’s track record guarantees acceptance and investments anytime it comes to raising new funds from the market.
Also speaking, Bisi Bakare, the National Coordinator of Pragmatic Shareholders Association (PSAN), said Access Holdings had what it takes to attract the right investors, and it is already doing so with ease.
She highlighted the bank’s consistent dividend payments and robust financial performance, making it an attractive investment.
Bakare expressed her association’s support for the Rights issue, expressing the optimism that the offer will be over-subscribed at the end of the day.
She said members of her association have been advised to take up their rights because the bank had all it takes to continue to declare profits and dividends.
She said: “I am going to take my rights, and we have advised other shareholders to do so. Investors should also see the opportunities the offer presents, based on the track record of success that is synonymous with Access Holdings. The Rights Issue is good and attractive to savvy investors”.
Taiwo Oderinde, also a member of the Proactive Shareholders Association, said Access Holdings has added value to the economy and investors.
According to him, the company has surpassed projections in terms of how it has grown from its humble beginning to the status of a global brand.
He said the bank had been able to grow through mergers and acquisitions, and investors should take advantage of the rights issue.
According to him, anyone who invests in the offers will count huge gains in the years to come. “I predict great returns to investors in the rights issue,” he said.
National Coordinator, Progressive Shareholders Association of Nigeria (PSAN), Boniface Okezie, said the bank’s expansion into new markets will begin to pay off now, which presents good opportunities for investors of all classes.
He advised the bank to continue to equip its branches in the domestic market and offshore with the right technology to enable them continually to deliver quality services and bountiful returns to shareholders and all stakeholders.
He said investors are investing at the right time, because all the years of expansion and opening in new markets will begin to produce the right results.
He said the subsidiaries within the holding company structure should also be strengthened to ensure they continue to be profitable.
Okezie advised Access Holdings to show more interest in funding the real sector to support the economy and sustain the growth of businesses.
“Overall, Access Holdings is a great brand that has stayed the course of time. Its ability to deliver to customers and all stakeholders is not in doubt, and we believe that that track record of great achievements will be sustained,” he said.
He further advised the bank to continue to hire great talents and sustain a quality reward system to ensure that the entire workforce is motivated to surpass targets and deliver bountiful returns to shareholders.
Benefits of the Rights Issue
Chairman of Access Holdings Plc, Aigboje Aig-Imoukhuede, said the group decided on a rights issue as a commitment to the bond between the group and its shareholders.
According to him, shareholder value was at the core of the group’s business vision and the group decided shareholders, who had endured to build the group to its enviable status should reap the benefits.
At the “Facts Behind the Rights Issue” session at the NGX, Aig-Imoukhuede said the group is moving to a new phase of its phenomenal growth where shareholders would reap bountiful returns on their investments.
He urged shareholders to pick their rights as they stand to gain more from their investments.
According to him, the additional capital will enable the group to maximise emerging opportunities and deliver long-term value to shareholders.
He said the group was committed to strengthening ties with shareholders and enhancing value creation.
Funding for infrastructure to rise
Access Holdings Plc reaffirmed its commitment to addressing infrastructure deficit and capital access challenges not only in Nigeria but across the continent.
Managing Director of Access Bank Plc, Roosevelt Ogbonna, said the bank’s focus on improving infrastructure at this time is informed by its desire to bridge the gap and connect Africa with the rest of the world.
“As one of the continent’s largest and most diversified financial services groups, the Group is poised to tackle Africa’s integration into global markets, which remains a significant challenge, hindering the continent’s economic growth and development, particularly in an era, where globalisation is rapidly reshaping economies worldwide.”
The Access Bank’s chief, who spoke in light of the bank’s ongoing Rights Issue presentation at the Nigerian Exchange (NGX), said: “We are positioning ourselves to be one of the most respected banks globally,” adding, “Our focus is on superior service across all the continents and countries we are operational in.”
Access Bank’s customer base, he stated, is expected to grow to 125 million by 2027, further cementing our market leadership.
This ambitious growth plan, in his words, “is part of the broader strategy to drive organic growth through strategic acquisitions, partnerships with international banks, and substantial investments in infrastructure and technology,”
Access Holdings’ ambitious five-year strategic plan, Ogbonna highlighted, aims to establish a presence in at least 26 countries by 2027, including the Organisation for Economic Co-operation and Development (OECD) countries, the United Kingdom, France and the USA.
To support this growth, he said, “Access Holdings plans to develop a cutting-edge digital platform and automated self-services to better serve its customers, as well as open cost-effective branches in strategic locations within and beyond Africa.”
According to him, building on this key aspect of Access Holdings’ growth strategy is the formation of strategic partnerships with major players in the financial sector. One of which is the Group’s partnership with Safaricom Plc and M-PESA Africa to expand cross-border money solutions in Africa.
As he put it, “this partnership will leverage Access Bank’s extensive network and presence across 15 African countries, including Nigeria, Kenya, Ghana and Tanzania, to provide affordable remittance solutions to key markets.”
He said Access Holdings is extending its cross-border money solutions in Africa through strategic alliances with Safaricom Plc and M-PESA Africa, leveraging its broad network of 15 African nations to provide competitive remittance options.
Besides, he said the financial services group is collaborating with MasterCard to create a payment infrastructure that integrates a single cross-border money transfer system across multiple African markets.
This solution, Ogbonna emphasised, will enable businesses and consumers to make and receive international payments in over 150 countries, thereby enhancing the accessibility and efficiency of cross-border payments.
He stressed that Access Holdings’ strategic expansion plan could position Africa as a global economic leader, expanding financial and credit services to remote areas of the continent.
“The opportunities for African integration and economic progress are vast,” adding that by capitalising on its extensive network, large customer base, geographic reach, and market leadership, “Access Holdings is well-equipped to unlock new opportunities for African businesses and consumers, enhancing the continent’s interconnectedness.
Ogbonna said Access Bank has experienced significant growth, particularly following its merger with Diamond Bank, pointing out that this merger has positioned Access Bank as one of the largest retail banks in Africa by customer base and the largest by total assets.
He said Access Bank currently serves its markets through Retail, Business, Commercial and Corporate, saying over the past 18 years, the bank has demonstrated strong growth potential, solidifying its position as a leader in the African banking space.
The goal of becoming Africa’s gateway to the world, he said, is driven by the company’s plan to be the continent’s preferred trade financier and payment solutions provider.
According to him, this strategy leverages the enormous potential in trade and payment, including Africa’s $24 billion electronic payments market, growing at an annual rate of 30 per cent; the $950 billion in cross-border trade; and the $100 billion in cross-border payments and remittances.
For businesses operating across borders, payments are no longer simply the final step in a transaction. The way money moves can influence where a company sells, how quickly it can enter a new market, and how easily customers can complete a purchase. As digital payment methods become more diverse, businesses are adjusting not only their checkout options but also the way payment processes fit into wider operations.
This shift is particularly visible in international commerce. A company can now serve customers in multiple markets without relying on a single payment method or a traditional physical presence in each location. Digital payments have become part of the infrastructure that supports increasingly distributed business models.
A More Connected Payment Environment
Global commerce has created a more complicated payment environment. Customers in different countries may have very different expectations about how a purchase should be paid for. Some markets rely heavily on cards, while others have seen rapid adoption of digital wallets, bank-based payment methods, or other local alternatives.
For businesses, this variety creates both opportunities and practical challenges. Offering payment options that customers recognize can reduce friction during a transaction, while supporting several markets may require businesses to work with different payment technologies and providers.
Digital payments have therefore become closely connected to market expansion. A company entering a new country does not only need to consider demand for its products or services. It also needs to understand how customers in that market prefer to pay and whether its existing payment setup can accommodate those expectations.
More Choices for Businesses and Customers
The growth of digital payments has expanded the range of choices available on both sides of a transaction.
Consumers can increasingly choose between cards, digital wallets, bank transfers, mobile payment methods and other forms of electronic payment. Businesses, meanwhile, can select from different technologies and payment providers depending on their markets and operational requirements.
This development has changed the role of payments in the customer experience. Payment is no longer necessarily treated as an isolated technical process that begins only after a purchasing decision has been made. The available options can influence whether a customer completes a transaction in the first place.
For international businesses, flexibility can be particularly important. A payment method that is familiar and convenient in one market may be less relevant in another. Supporting a broader selection can allow businesses to adapt their payment experience without changing the underlying product or service.
The Rise of Alternative Payment Models
Traditional card and bank-based payments remain important, but the digital payments landscape has expanded beyond these established methods. Digital wallets, account-to-account payments, mobile solutions and cryptocurrency have all contributed to a broader definition of what a digital transaction can look like.
Cryptocurrency remains a smaller part of the overall payments landscape, but it has created another category of payment technology for businesses to consider. Specialized solutions such as BitHide can provide businesses with tools for handling crypto payments as part of their broader payment operations.
The significance of this development is not necessarily that every business will adopt cryptocurrency. Rather, it demonstrates how the payment landscape continues to diversify. Businesses operating internationally can increasingly choose from different models instead of relying on a single approach across every market.
Payments Are Becoming Part of Business Operations
As payment systems become more digital, their role increasingly extends beyond accepting money from customers. Payment processes can interact with accounting, order management, customer records and other parts of a company’s digital operations.
This is particularly relevant for businesses with large transaction volumes or customers in multiple countries. Manual payment processes can become difficult to manage as the number of transactions, currencies and payment methods increases. Digital systems can help businesses organize these processes within a wider operational framework.
The result is a gradual shift in how companies think about payments. Instead of treating payment processing as a separate function, businesses are increasingly considering it alongside other elements of their digital infrastructure.
This does not mean that every company needs a complex payment setup. The appropriate approach depends on the business model, target markets, transaction volumes and types of customers involved. For some companies, a small number of established payment methods may be sufficient. Others may need a more flexible arrangement because of the markets they serve.
Adapting to Different Markets
One of the more important changes brought by digital payments is the ability to adapt payment experiences to different markets.
International businesses often face differences in consumer behavior, financial infrastructure and preferred payment methods. A payment strategy that works well domestically may therefore require adjustments when a company expands internationally.
Digital payment technology can make these adjustments more practical, but it does not remove the need for local market knowledge. Businesses still need to understand customer preferences, applicable requirements and the practical costs associated with different payment methods.
This makes payment strategy part of international expansion rather than an issue that can be addressed only after a new market has been entered.
What Comes Next for Global Businesses
The digital payments market is likely to continue becoming more diverse as businesses and customers adopt new ways of moving money. The important change may not be the replacement of one payment method by another, but the growing ability to combine different methods according to the needs of a particular business or market.
For global companies, this creates an emphasis on adaptability. Payment systems need to support the way a business operates rather than becoming a limitation on where and how it can sell.
Digital payments are consequently becoming more than a convenient alternative to cash or traditional payment processes. They are increasingly connected to international commerce, customer experience and day-to-day business operations. As payment options continue to develop, companies that can adapt their payment strategies to different markets will be better positioned to operate in an increasingly digital global economy.
By Adedapo Adesanya
The Dangote Refinery accepted 52.6 million barrels of crude oil and condensate from producers in the second quarter of 2026, representing 78 per cent of the 68.1 million barrels offered to the refinery, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The refinery, which required about 63 million barrels during the three-month period, received the largest share of crude volumes offered to domestic refineries, accounting for about 98 per cent of total volumes offered by producers.
The figures were contained in the commission’s latest data on the implementation of the Domestic Crude Supply Obligation (DCSO), which showed that producers supplied 53.7 million barrels to local refineries between April and June.
The Q2 performance translated to a 97.4 per cent compliance rate with the DCSO, which is enforced by the NUPRC under Section 109 of the Petroleum Industry Act (PIA) 2021.
The agency said the DCSO framework operates on a “willing buyer, willing seller” basis, with monthly consultations between producers and refiners used to determine crude allocation volumes.
Despite producers offering the Dangote Refinery about 5.1 million barrels more than its quarterly requirement, the plant accepted 52.6 million barrels, leaving about 15.5 million barrels of the offered volume unaccepted.
NUPRC said the difference highlighted the need for continued coordination between producers and domestic refiners, particularly on commercial terms and logistics.
The commission attributed the improved DCSO compliance in the second quarter to increased local crude production and the signing of long-term crude supply agreements backed by bankable Sales and Purchase Agreements (SPAs).
According to NUPRC, these agreements have reduced transactional difficulties and improved the predictability of crude supply, enabling domestic refineries to plan their offtake more effectively.
Monthly data showed mixed performance during the quarter. In April, producers offered 19.31 million barrels against an allocation of 18.13 million barrels, while refineries received 20.88 million barrels, representing a 114.9 per cent delivery rate.
In May, producers offered 23.19 million barrels against an allocation of 18.78 million barrels, but actual deliveries fell to 14.23 million barrels, resulting in a 75.8 per cent compliance rate.
In June, producers offered 26.84 million barrels against an allocation of 18.17 million barrels, while refineries received 18.61 million barrels, representing a 102.4 per cent performance rate.
The NUPRC said it would continue to enforce the DCSO under the PIA while leveraging increased domestic production and commercial supply arrangements to support Nigeria’s energy sufficiency objectives.
By Modupe Gbadeyanka
The Group Chief Innovation and Technology at Meristem, Mr Stanley Jacob, submitted that the core financial challenge facing Nigeria and Africa is not funding, but a lack of financial architecture and project readiness to deploy existing capital safely and productively.
At a forum organised by The Alternative Bank (AltBank) last Thursday in Lagos, Mr Jacob tasked policymakers to think out of the box, noting that the continent holds vast domestic capital pools.
At the event themed Beyond Interest, he also disclosed that the convergence of the Pan-African Payment and Settlement System (PAPSS) with the tokenisation of real-world assets could hand Nigeria a first-mover advantage in continental capital markets.
This sentiment was echoed by the Executive Director of Tugrande Alliance Limited, Ajibola Tobi-Osho, who pointed out that while Nigeria has moved from crisis management to macroeconomic stability, the binding constraint has shifted from inflation to capital allocation, with banks parking record liquidity at the central bank rather than lending to the businesses that drive jobs and growth.
Last Thursday’s programme was convened to advance the case for non-interest finance as a practical route to mobilising patient capital into Nigeria’s productive economy, as well as press investors and policymakers to judge every allocation by both the returns it earns and the capacity it builds.
The chairman of The Alternative Bank, Mr Muhtar Bakare, stated that Nigeria’s constraint is less a shortage of capital than a shortage of the trust that allows capital to do patient work.
“What we lack is not effort. We lack capital that stays long enough to turn effort into capacity, capacity into durable jobs and durable jobs into stability. That is why the distinction between extractive and productive capital matters,” he said.
Also speaking, the Governor of Lagos State, Mr Babajide Sanwo-Olu, averred that the government is not a competitor to private investment but an enabler of it.
“The future of finance is not only about the price of capital; it is increasingly about the quality of the economic activity that capital enables. Lagos is not only open for business; Lagos is prepared to do business,” Mr Sanwo-Olu, represented by the Commissioner for Finance, Mr Abayomi Oluyomi, stated.
In his remarks, former Governor of Lagos State and former Minister of Works and Housing, Mr Babatunde Fashola, argued that capital anchored to real, productive assets and to the public good delivers more durable value than money chased for short-term yield, and urged investors and institutions to weigh the long-term social returns of where they place their funds.
Delivering his brief on The Business Case for Ethical Capital, a member of Sterling Financial Holdings Company Plc board, Mr Abubakar Suleiman, traced The Alternative Bank’s journey from a modest non-interest window opened by Sterling Bank in 2014 to an institution he said now holds total assets approaching ₦500 billion and serves nearly a million customers.
“The Alternative Bank has shown that non-interest banking can grow, win customers, and generate profit. The business case for ethical capital already exists. Our task is to apply it with discipline,” he stated.
He pointed to WasteBanc, AltBank’s recycling initiative with the Lagos Waste Management Authority, and to Nigeria’s sovereign Sukuk programme as evidence that values-aligned finance can hold to commercial standards while connecting capital to identifiable, productive assets.
