By Ayomide Otitoju
Wema Bank has announced plans to raise N200 billion as part of its final tranche in an ongoing recapitalization exercise, ensuring compliance with the Central Bank of Nigeria’s (CBN) updated capital requirements for commercial banks.
In a statement issued on Wednesday, the bank disclosed that the funds would be raised through a combination of rights issues and a private placement exercise set to commence on April 1, 2025.
The CBN, in March 2024, revised capital thresholds for banks operating in Nigeria. Under the new guidelines, commercial banks with international authorization must meet a minimum capital base of N500 billion, while those with national and regional licenses are required to meet N200 billion and N50 billion thresholds, respectively. The deadline for compliance is March 2026.
Wema Bank, which pioneered Africa’s first fully digital bank, ALAT, is taking proactive steps to exceed the CBN’s N200 billion requirement for national banking authorization. This final tranche follows the successful completion of an N40 billion rights issue launched in December 2023.
Commenting on the capital raise, Wema Bank’s Managing Director and CEO, Moruf Oseni, expressed confidence in the bank’s strategic direction and commitment to growth.
“We stand strong not just as Nigeria’s oldest indigenous bank but also as a leader in innovation,” Oseni said. “As Wema Bank turns 80, we are more determined than ever to achieve our aspirations. This capital raise will position us as a formidable force in the African financial services landscape.”
Oseni assured stakeholders of transparency throughout the process, adding that the recapitalization would yield substantial returns for investors. “This is a win-win for everyone. You can trust that your investment in Wema Bank will generate exceeding returns,” he affirmed.
The bank’s CEO reiterated its commitment to maintaining a national banking license while strengthening its position as a leader in the Nigerian financial sector. With this final phase, Wema Bank aims to solidify its standing as a key player in the evolving banking landscape.
