WEMA Bank Plc has announced the successful completion of its N150 billion Rights Issue, which opened on April 14, 2025, and closed on May 21, 2025. The exercise has received formal approval from both the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC), marking a significant milestone in Nigeria’s banking sector recapitalization drive.
This Rights Issue was undertaken in response to the CBN’s directive on the recapitalisation of banks in Nigeria. With the successful completion and regulatory approval, Wema Bank has now met the N200 billion minimum capital requirement applicable to commercial banks with national authorisation, with its total qualifying capital now standing at an impressive N214.7 billion.
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The CBN Recapitalization Framework: A Sector-Wide Transformation
The CBN’s March 2024 directive represents the most significant banking sector reform since 2005, when the last major recapitalization exercise reduced the number of banks from 89 to 24. Under the new framework, commercial banks with international authorization are required to maintain a minimum capital base of N500 billion, while those with national authorization, such as Wema Bank, must meet a N200 billion threshold.
Banks with regional authorization were required to reach a N50 billion capital floor, while non-interest banks with national and regional authorizations must adhere to new minimum requirements of N20 billion and N10 billion, respectively. The compliance deadline is March 2026, giving financial institutions a 24-month window to meet these enhanced requirements.
Industry analysts estimate that the banking sector still needs to raise nearly N900 billion by the end of 2025 to meet the March 2026 deadline. The reform aims to strengthen the banking system’s resilience against external shocks and support larger-scale financing in a Nigerian economy seeking massive investments, particularly in energy and infrastructure.
Wema Bank’s Strategic Capital Raise: Beyond Regulatory Compliance
In addition to the Rights Issue, Wema Bank also recently concluded a N50 billion Private Placement, which is now awaiting regulatory reviews. This additional capital raises the Bank’s total capital base above the regulatory threshold, further strengthening its buffer, enhancing its shock-absorption capacity, and positioning the bank for sustained growth.
The rights issue was oversubscribed, underscoring investor confidence in the bank’s strategic direction and governance. This achievement is particularly significant given the challenging operating environment in Nigeria, characterized by persistent inflation, naira volatility, and tightened credit conditions.
Commenting on the bank’s success in meeting the regulatory threshold ahead of the 24-month timeline, Moruf Oseni, Wema Bank’s MD/CEO, reaffirmed the bank’s promise of delivering the best value as it continues its growth journey.
According to Oseni: “As a growth-driven Bank, the industry recapitalisation requirement came as a welcome mission, and we undertook it with full confidence. Our success in surpassing the N200 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. We do not take this trust for granted and we take this moment to firmly reiterate our commitment to continue delivering optimum value to every shareholder and stakeholder of Wema Bank.”
Nigeria’s Banking Sector: A Competitive Landscape
Only six of Nigeria’s 13 listed banks currently meet the Central Bank of Nigeria’s new recapitalization requirements. These banks include Access Bank, Zenith Bank, GTBank, Wema Bank, Jaiz Bank, and Stanbic IBTC.
Access Bank was the first tier-1 lender to hit the N500 billion mark for banks with international authorization, while Zenith Bank followed by raising N350.4 billion from its combined rights issue and public offer. Ecobank Nigeria, a national bank, needed only a small capital injection to meet its requirement, while both Lotus Bank and Jaiz Bank confirmed compliance with their respective thresholds.
For the seven other institutions still below the threshold, options remain limited in the constrained economic environment. These include rights issues, bond market offerings, or searching for strategic investors. This environment could accelerate a new wave of mergers and acquisitions, similar to the 2004-2005 recapitalization exercise.
Wema Bank: Nigeria’s Longest-Surviving Indigenous Bank
Wema Bank’s achievement is particularly noteworthy given its remarkable history as Nigeria’s longest-surviving indigenous bank. Founded on May 2, 1945, as Agbonmagbe Bank Limited by the late Chief Mathew Adekoya Okupe, the bank has weathered numerous economic storms and regulatory changes over its nearly 80-year history.
The bank was initially established with branches in Ebute-metta, Sagamu, Abeokuta, and Ijebu-Igbo. It was later taken over by the Western Nigeria Marketing Board and renamed Wema Bank Limited in 1969. The bank converted to a public limited liability company in 1987 and was listed on the Nigerian Stock Exchange in 1990.
In 2025, Wema Bank celebrates its 80th anniversary, marking eight decades of resilience and adaptation in Nigeria’s dynamic financial sector. As part of its anniversary celebrations, the bank unveiled a refreshed brand identity, symbolizing its continued evolution and commitment to innovation.
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Financial Performance: A Track Record of Growth
Wema Bank has demonstrated remarkable financial performance in recent years. The bank’s 2024 results showed exceptional growth, with profit before tax reaching N102.51 billion, marking a 135% increase compared to N43.59 billion recorded in 2023.
The bank’s balance sheet remained structured, diversified, and resilient, with total assets growing by 60% to N3.585 trillion in 2024 from N2.240 trillion in 2023. Total deposits grew year-on-year by 36% to N2.523 trillion from N1.860 trillion, while loans and advances increased by 50%, reaching N1.201 trillion in 2024 from N801.10 billion in 2023.
Gross earnings surged by 91.5% to N432.34 billion, while the bank maintained a healthy cost-to-income ratio of 56.23%, highlighting its operational efficiency and financial strength. Non-performing loans stood at a manageable 3.86% at year-end, demonstrating prudent risk management practices.
Digital Innovation: ALAT Leading the Future
One of Wema Bank’s key differentiators is its pioneering role in digital banking through its flagship platform, ALAT. Launched in May 2017, ALAT represents Nigeria’s first fully digital bank and has revolutionized banking convenience for millions of customers.
During its first year, ALAT acquired more than 250,000 customers responsible for well over N1.6 billion in deposits. By 2018, the platform had crossed the N1 billion mark in terms of deposits into savings accounts. ALAT For Business serves as the corporate version of the platform, extending digital banking services to business customers.
The platform has been particularly successful among Nigeria’s young population, with innovations such as ALAT XPlore, Nigeria’s first licensed banking app for teenagers aged 13 to 17, designed to build financial skills and responsibility from an early age.
Strategic Positioning and Future Outlook
The successful completion of the capital-raising initiatives reinforces Wema Bank’s prudential position and provides a solid foundation for long-term stability. It also reflects the continued confidence of stakeholders in the bank’s governance, financial performance, and strategic direction.
Industry analysts believe that the bank’s strengthened capital base enhances its lending capacity, shock-absorption ability, and long-term stability, positioning it to play a more active role in Nigeria’s financial sector. The increased capital will enable the bank to underwrite bigger levels of credit in the economy and ultimately generate higher income.
Wema Bank operates a network of over 150 business offices nationwide and continues to leverage its cutting-edge digital platform to lead the evolution of digital banking in Nigeria. The bank offers a comprehensive range of core banking services, including retail banking, corporate and SME banking, digital payments, trade finance, treasury services, and financial advisory.
Economic Impact and Sector Implications
The success of banks like Wema in meeting the CBN’s recapitalization requirements ahead of schedule bodes well for Nigeria’s broader economic objectives. The CBN justified this reform by the necessity to strengthen the banking system’s resilience and support the $1 trillion GDP target envisioned by 2030.
A stronger financial system will provide enhanced support for the Nigerian economy through increased business activities, improved lending capacity, and better risk management. The recapitalization is also expected to attract foreign investments, as banks seek to raise the required additional capital, potentially increasing foreign exchange liquidity and supporting naira stability.
For the broader banking sector, the recapitalization exercise represents a transformational moment. S&P Global Ratings estimates that the capital increase requirement will add an average of 400 basis points to top-tier banks’ regulatory capital ratios, significantly improving their loss absorption capacity in a context of high operating, credit, and currency risks.
Leadership and Corporate Governance
Under the leadership of MD/CEO Moruf Oseni, Wema Bank has embraced digital transformation while maintaining core values of trust and customer service. By championing technological advancements and fostering a culture of innovation, Oseni has ensured that Wema Bank not only remains competitive but continues to lead the industry.
The bank’s commitment to excellence extends beyond financial performance to encompass sustainability initiatives, environmental stewardship, and corporate social responsibility. As recognized by various awards, Wema Bank has been acknowledged as a Great Place to Work and continues to invest in its diverse workforce of over 2,300 employees.
Conclusion: A Foundation for Future Growth
The conclusion of these capital-raising initiatives reinforces the bank’s prudential position and provides a solid foundation for long-term stability. Wema Bank’s success in surpassing the regulatory requirements ahead of schedule demonstrates the effectiveness of its strategic planning, the confidence of its shareholders, and the strength of its management team.
With its strengthened capital base, enhanced digital capabilities, and solid market position, Wema Bank is well-positioned to support customers, contribute to the stability of the Nigerian financial system, and deliver sustainable value to its stakeholders. As Nigeria’s economy continues to evolve and grow, institutions like Wema Bank will play a crucial role in facilitating the financial intermediation necessary for sustainable economic development.
The bank’s achievement serves as a benchmark for other financial institutions navigating the recapitalization exercise and demonstrates that with proper planning, stakeholder confidence, and strategic execution, Nigerian banks can successfully meet the enhanced regulatory requirements while positioning themselves for future growth and expansion.
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By: Montel Kamau
Serrari Financial Analyst
15th September, 2025
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