Wema Bank Plc has successfully concluded its N150 billion rights issue, pushing the financial institution above the Central Bank of Nigeria’s minimum capital threshold for commercial banks with a national licence.
The rights issue, which opened on April 14 and closed on May 21, was oversubscribed and has received formal approval from both the CBN and the Securities and Exchange Commission, the bank said in a statement.
With the completion of the exercise, Wema Bank’s total qualifying capital now stands at N214.7 billion, comfortably exceeding the N200 billion regulatory requirement.
The capital raising was undertaken in response to the CBN’s directive on bank recapitalisation, which requires commercial banks to meet the new minimum capital thresholds by 2026.
In addition to the rights issue, Wema Bank has concluded an additional N50 billion private placement, which is currently awaiting regulatory approval. This supplementary fundraising further bolsters the bank’s capital position above the regulatory minimum.
Speaking on the successful completion of the exercise, Managing Director and Chief Executive Officer of Wema Bank, Moruf Oseni, described the recapitalisation requirement as a welcome mission.
“Our success in surpassing the ₦200 billion benchmark ahead of the 2026 deadline not only reinforces our strong financial standing as a bank but also attests to the mutual trust and confidence that exists between Wema Bank and its shareholders,” Oseni said.
He added that the bank remains committed to delivering optimum value to shareholders and stakeholders.
The successful capital raising comes at a time when Nigerian banks are racing to meet the CBN’s new capital requirements. The apex bank had in March 2024 announced new minimum capital requirements for deposit money banks, with commercial banks with national authorisation required to raise their capital base to N200 billion.
The completion of Wema Bank’s fundraising initiatives is expected to strengthen the lender’s position in the competitive Nigerian banking sector and provide a foundation for long-term growth and stability.
