Wema Bank has unveiled plans to complete its capital-raising efforts with a strategy that involves a Rights Issue and a Special Placement, both set to begin on April 1, 2025. This final tranche aims to raise N200 billion in fresh capital, a pivotal step in the bank’s growth trajectory.
This announcement marks the second and final phase of Wema Bank’s capital-raising initiative, which follows the successful completion of the first tranche that secured N40 billion. By raising this additional N200 billion, the bank will surpass the Central Bank of Nigeria’s (CBN) minimum capital requirement for national banking authorization, thereby enhancing its financial strength and positioning it for sustainable growth in the competitive banking sector.
Wema Bank’s proactive approach to securing capital reflects its ongoing commitment to financial health, innovative banking solutions, and market competitiveness. Prior to the CBN’s directive, the bank had already embarked on a N40 billion rights issue in December 2023, which received approval from both the CBN and the Securities and Exchange Commission (SEC) in 2024. The success of this first tranche set the stage for the second phase, bringing the bank closer to achieving its capital-raising goal.
With over 30% of the CBN’s target of N200 billion already met, the bank is now set to proceed with the next phase, focusing on securing the full amount required by the CBN. The rights issue will be the main mechanism for this capital raise, supplemented by a Special Placement exercise.
Moruf Oseni, Wema Bank’s Managing Director and CEO, expressed confidence in the success of the upcoming capital raise. He assured shareholders and stakeholders that the bank is on track to complete the process efficiently. “Wema Bank turns 80 this year, and we’ve never been more driven to excel,” Oseni stated. “With the unwavering support of a dedicated team, we are building Wema Bank into a formidable force in the African financial services sector.”
Oseni emphasized Wema Bank’s commitment to transparency, ensuring that shareholders and stakeholders would be kept informed throughout the process. He also reassured them that their investment would yield exceptional returns. “This is a win-win for us all,” he added, reinforcing his confidence in the bank’s long-term growth.
With the CBN’s recapitalization deadline set for March 31, 2026, Wema Bank’s strategic move to complete the capital-raising process ahead of time will secure its national banking license well before the deadline. This proactive step underscores Wema Bank’s commitment to compliance with regulatory standards and its long-term vision for growth and innovation in the Nigerian banking sector.
As always, Wema Bank will work closely with regulatory authorities to ensure full compliance with applicable guidelines, maintaining the highest standards of transparency throughout the process.