Access Holdings Scoop Over N1.3 Trillion Amidst 2026 Recapitalisation

As Nigeria's banking sector faces a recapitalisation deadline by March 2026, many struggling banks are circumventing initial public offerings (IPOs) due to regulatory hurdles and high costs. Seven banks including Access Holdings, GTCo, and Zenith Bank have collectively raised N1.32 trillion through approaches that combine rights issues and public offers (POs). This consolidative effort is largely attributed to the sector-wide reluctance towards IPOs, with small lenders opting for mergers and acquisitions over public listings. The failure to stimulate IPO activity has been attributed to over-regulation and the high costs of public listings. Historical trends from 2004 showed a significant boom in IPO activity, which is not replicated in the current market conditions. This has left the IPO market stagnant, hindering new investments and growth potential. Analysts point out factors like inflation, currency depreciation, and associated costs as further hindrances. Legislative flexibility by the Central Bank of Nigeria (CBN) has facilitated the exploration of alternative capital-raising routes, providing options like private placements and strategic partnerships for smaller banks aiming to bolster their financial base and market reach.