Top Nigerian financial institution, Access Bank Plc, will reduce its equity stakes in some of its foreign subsidiaries to comply with new rules from the Central Bank of Nigeria (CBN) limiting external investments by local banks.
This was disclosed by Access Bank’s chief executive, Mr Roosevelt Ogbonna, on an investor call in Lagos on Tuesday.
The CBN has ordered banks to limit equity investments in foreign subsidiaries to no more than 10 per cent of total shareholders’ funds. This is to help contain risk and preserve capital, which are fundamental to long-term financial system stability.
Mr Ogbonna said Access Bank, which has operations in over 20 countries, has 12 months to comply.
“We are looking at divestments” to bring down our equity stake, from a current level of 19.4 per cent, the CEO said. “We will still be the controller of those banking entities, and the value creation will continue to be strong,” he said.
Nigerian banks began expanding aggressively across the continent after the country’s 2016 recession, seeking to mitigate risks from currency devaluation, rising non-performing loans, and to diversify income streams.
Access Bank has been at the forefront of that push, acquiring assets from financial groups including Standard Chartered Plc, Atlas Mara Ltd. and KCB Group Plc, helping it build a significant footprint across Africa’s banking industry.
In recent years, other Nigerian banks have boosted their external footprint, including Zenith Bank, UBA, and Guaranty Trust Holding Company (GTCO), among others.
Last year, Access Bank signalled a pause in acquisitions to focus on expanding its existing operations.
Mr Ogbonna also said the lender is considering refinancing a $500 million Eurobond due in September, not due to liquidity pressures, but to extend the maturity profile of its debt.
The executive said a final approval on that refinancing, as well as on a $500 million perpetual bond due in October, is expected this month.
Business Post reports that Access Holdings grew its 2025 financial year pre-tax profit by 16.2 per cent to N1.01 trillion while net interest income rose to N1.36 trillion, net fees and commission income recorded a particularly strong growth of 40.9 per cent to N585.1 billion, reflecting increasing diversification in revenue streams, and overall operating income after impairment grew by 23.9 per cent to N3.17 trillion.
At the same time, the firm improved its cost discipline, with its cost-to-income ratio declining to 51.7 per cent from 56.7 per cent in 2024. Returns also remained solid, with return on average equity at 18.4 per cent and return on average assets at 1.6 per cent, reinforcing the quality of earnings delivered during the year.