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.
By Adedapo Adesanya
The Senate has passed a bill to repeal and re-enact the law establishing the National Insurance Commission (NAICOM), paving the way for the regulatory agency to be renamed the Insurance Regulatory Commission (IRC).
The legislation, titled the Insurance Regulatory Commission (Establishment) Bill, 2026, was passed after the Senate considered and adopted the report of its committee on banking, insurance and other financial institutions.
The Chairman of the committee, Mr Adetokunbo Abiru, the senator representing Lagos East, who presented the report, stated that the proposed legislation was necessary because the existing National Insurance Commission Act of 1997 had become outdated and no longer reflected the realities of Nigeria’s evolving insurance industry or global regulatory standards.
According to the Senate, the decision to change the Commission’s name was informed by the need to eliminate confusion associated with the existing designation and to better reflect the institution’s regulatory mandate within Nigeria’s insurance industry.
The bill also provides legal protection for the commission and its officers against adverse claims arising from the lawful execution of their statutory duties.
However, he noted that the commission’s enabling law had become obsolete, exposing significant regulatory gaps that required urgent legislative intervention.
‘The current National Insurance Commission Act 1997 is outdated and does not adequately address the emerging economic growth, needs and development of the insurance business,” the lawmaker said.
He explained that the new legislation seeks to strengthen the independence of the commission by empowering it to make regulatory decisions without undue influence in the country’s insurance sector.
According to him, the bill also enhances the commission’s authority to exchange information and collaborate with domestic and international regulatory bodies, issue regulations, guidelines, standards and directives on insurance-related matters, and intervene more effectively in financially distressed insurance companies to protect policyholders and preserve financial stability.
This marks yet another move to strengthen the country’s insurance sector following the enactment of the Nigerian Insurance Industry Reform Act (NIIRA) of 2025 and the industry-wide recapitalisation exercise, which will wrap up by July 31.
By Adedapo Adesanya
About 143 companies that successfully passed the technical and prequalification stages of the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) 2025 Licensing Round will, today, compete for 50 oil and gas blocks at the commercial bid conference in Abuja, the final stage in the allocation process for the assets.
The commission said only the prequalified companies have been invited to attend the event, which will hold at the Conference Centre of the Transcorp Hilton Hotel, Abuja, stressing that participation is strictly by invitation.
The commercial bid conference will determine the successful bidders for oil and gas assets located across Nigeria’s producing and frontier basins.
The 50 blocks comprise 16 onshore blocks and 18 shallow water blocks in the Niger Delta, one deep offshore block, three onshore blocks in the Benin Basin, four in the Anambra Basin, four in the Chad Basin, and four in the Benue Trough.
According to the commission, the winning bids will be determined through a transparent evaluation process based on clearly defined commercial parameters. These include the signature bonus offered by bidders, the proposed work programme commitment and the level of performance security provided. The final selection will be based on a weighted technical and commercial score.
The licensing round is being conducted under the provisions of the Petroleum Industry Act (PIA) 2021, which requires a transparent and competitive process for the award of petroleum assets.
NUPRC had announced the commencement of the 2025 Licensing Round on November 11, 2025, before opening the online bid portal on December 1, 2025, to enable interested companies to register and participate in the exercise.
To ensure prospective investors fully understood the requirements, the commission organised a pre-bid conference on January 14, 2026, at Eko Hotels and Suites, Lagos. The event provided detailed explanations on the licensing guidelines and bidding procedures to registered participants and other stakeholders.
Registration and submission of prequalification documents closed on February 27, 2026, while the prequalification evaluation was completed on March 16, 2026.
NUPRC disclosed that 286 companies initially submitted applications for prequalification.
Following the evaluation process, 196 companies were cleared to participate in the technical and commercial bid stages.
The prequalified 143 companies eventually submitted a total of 200 bids for the available oil and gas blocks. These companies are now set to compete at the commercial bid conference, where the financial offers will be opened and evaluated to determine the eventual winners.
The licensing round is expected to attract fresh investment into Nigeria’s upstream petroleum sector, boost exploration activities across both producing and frontier basins, increase crude oil and gas reserves, and support the country’s drive to grow production and government revenue.
It also underscores the regulator’s commitment to implementing a transparent, competitive and investor-friendly licensing regime under the Petroleum Industry Act.
By Adedapo Adesanya
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained all key monetary policy parameters following the conclusion of its two-day meeting on July 21, 2026, on Tuesday, maintaining its tight monetary policy stance to curb inflation and support macroeconomic stability.
According to the Governor of the apex bank, Mr Yemi Cardoso, who chaired the committee, the Monetary Policy Rate (MPR), which serves as the benchmark interest rate, remains at 26.50 per cent. The MPC also retained the asymmetric corridor around the MPR at +50 basis points and -450 basis points.
In addition, the Cash Reserve Ratio (CRR) for commercial banks was left unchanged at 45.00 per cent, while the CRR for merchant banks remains at 16.00 per cent. The committee also retained the CRR on non-Treasury Single Account (Non-TSA) public sector deposits at 75.00 per cent, with the liquidity ratio at 30.00 per cent.
The decision reflects the apex bank’s continued commitment to containing inflationary pressures through a restrictive monetary policy while safeguarding the resilience of Nigeria’s financial system amid ongoing macroeconomic adjustments.
By keeping all policy tools unchanged, the MPC signalled its intention to continue managing excess liquidity in the banking sector and maintain stability in financial markets.
The move is also expected to provide greater policy certainty for investors and businesses monitoring the country’s monetary policy direction.
The latest decision also means borrowing costs are likely to remain elevated in the near term as the central bank continues to prioritise price stability over monetary easing.
Analysts had expected the CBN committee to retain the rate after Nigeria’s headline inflation came in at 15.91 per cent as of June 2026, marking a slight decline from 15.93 per cent in May.
However, even as overall price growth has moderated significantly compared to previous periods, food inflation remains a persistent challenge, accelerating to 17.52 per cent in June.
