Nigeria's Access Bank Shelves Plans To raise Capital

Nigeria’s Access Bank may not need to raise additional capital to meet the Central Bank of Nigeria’s (CBN) minimum capital thresholds.
Chief executive of the lender, Herbert Wigwe has cancelled its initial plans to raise around 75 billion naira through a rights issue to boost its capital.
Access bank, which has called an extraordinary shareholders meeting for March 5, to ratify its scheme of merger with a middle-tier Diamond Bank believed that its present capital is adequate to meet the regulatory requirement.
The bank CEO also revealed plans to fast tract the merger plans with Diamond Bank ahead of the June deadline earlier set.
Last year, Access Bank disclosed plan to merge its operations with Diamond Bank to become Africa’s largest retail lender by customers.
The bank said last week it has obtained approval-in-principle from the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) to go ahead with the merger plan.
Access Bank had planned to $250 million tier 11 capital and 75 billion naira in a rights issue to fully consolidate its hold in the market and provide a buffer for the merged entity.
But Wigwe said the lender has shelf the capital raise plan, which initially was expected to be concluded by June this year.