Zenith Bank Raises N350.1 Billion To Meet Central Bank’s Recapitalisation Requirements

Zenith Bank raised N350.1 billion from investors to meet new recapitalization requirements set by the Central Bank of Nigeria (CBN).

Nigerian commercial banks are working to raise capital to meet new requirements set by the CBN before the March 2026 deadline. Banks with international banking licenses, like Zenith, need to increase their capital to at least half a trillion naira.

The bank, Nigeria's second-largest lender after GTCO, raised the funds through a combination of a public offer and a rights issue. A total of 2.8 billion and 5.2 billion shares were offered for sale during these processes, as per Business Post.

The rights issue was fully subscribed, with 100.2% of shares sold, while the public offer had a higher subscription rate of 160.5%. In total, 4.4 billion shares were allocated according to the offer terms and the Central Bank of Nigeria's capital verification process.

Zenith Bank's share capital will now increase to N614.65 billion, which is N114.65 billion more than the required minimum. Other top banks, like Access Bank and Guaranty Trust Bank, have also completed their capital raises.

The bank highlighted that the process attracted both local and foreign investors, mainly through a digital offer. The bank used the Nigerian Exchange's e-Offer platform to allow investors to access the market online.

Zenith Bank plans to use the funds from the capital raise to strengthen its position as the leading financial institution. The bank will also invest in expanding into other markets in Africa and Europe, technology, and other growth initiatives.

The Securities and Exchange Commission and the Central Bank of Nigeria have approved the capital raise. This will help them support President Bola Tinubu's goal of achieving a GDP of half a trillion dollars by 2030.

Nigeria's latest GDP figures will be released later this month by the National Bureau of Statistics, following its first economic rebasing in ten years.

Tinubu presented the 2025 Budget of Restoration, titled "Securing Peace, Rebuilding Prosperity," to a joint session of the National Assembly last month, where he highlighted that the budget proposal reflected a bold plan to revamp the country's socio-economic situation.

Nigeria is targeting N34.82 trillion in revenue to fund the budget in 2025, as the government expenditure is projected to be N47.90 trillion, which includes N15.81 trillion for debt servicing. This will result in a budget deficit of N13.08 trillion, or 3.89% of GDP.