Nigeria’s banking sector is in the midst of its most consequential capital-raising cycle in over a decade. With the Central Bank of Nigeria’s ₦500 billion minimum capital requirement for internationally authorised commercial banks now firmly in force, lenders have collectively raised — or announced plans to raise — well over ₦2 trillion through a mix of public offers, rights issues, and private placements.
While the destination is the same, the routes banks are taking differ sharply, reflecting variations in shareholder structure, market timing, risk appetite, and execution philosophy.
At one end are banks that have front-loaded compliance through large public market transactions; at the other are lenders relying on staged or targeted private raises to manage dilution and volatility. Between them lies a spectrum of hybrid strategies.
Fidelity as a Reference Point
The approach adopted by Fidelity Bank Plc illustrates this diversity. The bank pursued a sequenced strategy:
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a 2024 Public Offer and Rights Issue, followed by
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a ₦259 billion private placement completed at the end of 2025,
lifting eligible capital to ₦564.5 billion and clearing the regulatory threshold ahead of deadline.
That playbook — combining market visibility with execution certainty — contrasts with how other tier-one banks are funding recapitalisation.
1) Hybrid Public Market Raises
Rights Issue + Public Offer
Broad-based equity, strong signalling — but heavier execution risk
Several banks have leaned on public markets to raise large pools of capital while demonstrating regulatory alignment and balance-sheet strength.
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Zenith Bank Plc raised about ₦350 billion through a combined rights issue and public offer, spreading demand across existing shareholders and new investors.
Why banks choose this route
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Maximises price discovery and transparency
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Builds strong public-market signalling around compliance
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Broadens shareholder base
Trade-off: exposure to market volatility, underwriting risk, and longer execution timelines.
2) Staged Programmes (Multi-Tranche Fundraising)
De-risking timing, preserving flexibility
Some banks are deliberately sequencing capital raises rather than attempting a single, all-in transaction.
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First HoldCo Plc / FirstBank of Nigeria Limited completed a rights issue (about ₦147.3 billion net) and has signalled a follow-on private placement of up to ₦350 billion.
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FBN Holdings Plc has also outlined plans that could involve capital raises of up to ₦300 billion, using a phased approach.
Why banks choose this route
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Reduces market-timing risk
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Allows management to adjust pricing and structure
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Preserves optionality if conditions deteriorate or improve
Trade-off: prolonged uncertainty until final tranches are completed.
3) Targeted Private Placements
(Including foreign-currency angles)
Speed and certainty — at the cost of narrower participation
Private placements have emerged as the fastest route to certainty, particularly for banks with strong institutional networks.
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Access Holdings Plc has pursued a private-placement-led strategy, including indications of foreign-currency-denominated capital, aligning recapitalisation with offshore expansion and FX funding needs.
Why banks choose this route
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Faster execution and predictable outcomes
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Flexibility in investor selection
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Potential alignment with FX or international growth strategies
Trade-off: limited retail participation and less public price discovery.
4) Rights Issues as a Shareholder-First Tool
Protect ownership — but rely on shareholder liquidity
Some lenders have emphasised rights issues to minimise dilution and keep control within existing shareholder blocs.
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UBA Plc has pursued rights-issue fundraising, including a tranche of about ₦157.8 billion, with timelines adjusted to maximise take-up.
Why banks choose this route
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Preserves ownership continuity
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Signals confidence in existing shareholder base
Trade-off: success depends heavily on shareholder liquidity and sentiment.
What the Contrast Tells Investors
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Public offers and hybrids maximise visibility and credibility, but are vulnerable to market swings.
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Private placements prioritise speed and certainty, often appealing to banks racing the clock.
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Staged programmes balance risk and flexibility, increasingly popular in uncertain markets.
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Rights-issue-heavy strategies protect control, but test shareholder capacity.
In effect, recapitalisation strategy has become a window into each bank’s risk tolerance, investor base, and growth ambitions.
Recapitalisation Scoreboard (Snapshot)
Banks that have effectively crossed ₦500bn (subject to final approvals):
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Fidelity Bank Plc — Hybrid, sequenced strategy; capital at ₦564.5bn
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Zenith Bank Plc — Large-scale public market raise
Banks using staged or mixed programmes:
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First HoldCo / FirstBank — Rights issue completed; private placement planned
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UBA Plc — Rights-issue-led recapitalisation
Banks leaning toward targeted structures:
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Access Holdings Plc — Private placement, including foreign-currency options
