Table of Contents
Key Points
- Wema Bank to raise $128.4 million through rights issue and special placement to meet capital requirements by 2026.
- CEO Moruf Oseni emphasizes recapitalization will boost compliance, innovation, and position Wema as a financial powerhouse.
- Q3 2024 profit surges 174%, underscoring Wema Bank's operational strength and investor appeal.
Wema Bank, a leading financial services provider partly owned by Nigerian gambling magnate Kessington Adebutu, is set to raise an additional N200 billion ($128.4 million) as part of its recapitalization strategy. The move aims to strengthen its capital base and solidify its position as a leading player in the country’s financial sector.
The recapitalization will be executed through a combination of a rights issue and a special placement exercise, scheduled to commence on April 1, 2025. This marks the second and final tranche of Wema Bank’s capital-raising initiative, following the successful N40 billion ($25.7 million) raised in 2024.
The move positions Wema Bank to surpass the Central Bank of Nigeria’s (CBN) minimum capital requirements for national banking licenses, well ahead of the March 31, 2026, deadline.
Strategic progress toward capital goals
The first phase of the recapitalization, initiated in December 2023, received approvals from both the CBN and the Securities and Exchange Commission (SEC) in 2024. This initial N40 billion ($25.7 million) capital raise laid the groundwork for the bank’s second tranche, designed to bring in an additional N200 billion ($128.4 million) in fresh capital.
Moruf Oseni, CEO of Wema Bank, expressed confidence in the bank’s strategic vision. “We stand strong as Nigeria’s oldest indigenous bank and a leader in innovation. As Wema Bank turns 80, we are more committed than ever to achieving our strategic aspirations. This recapitalization will not only ensure compliance with regulatory standards but also position us as a formidable force in Africa’s financial services landscape,” Oseni said.
Legacy of innovation and stability
As one of Nigeria’s leading lender, Wema Bank remains a key player in Nigeria’s financial landscape. Renowned for its innovative services, the bank launched ALAT, Africa’s first fully digital bank. With decades of experience and a commitment to progress, Wema Bank retains its position as a cornerstone of Nigeria’s financial ecosystem.
Nigerian gambling magnate Kessington Adebutu, founder of Premier Lotto Limited, the country’s oldest gaming company, owns a significant stake (28.26 percent) in Wema Bank through Neemtree Limited, a special purpose vehicle (SPV) established in 2013 for targeted acquisitions. His daughter, Abolanle Matel-Okoh, also holds a 4.54-percent stake in the bank.
The bank posted a robust N52.73 billion ($33.86 million) profit in its Q3 2024 results, a 174.1 percent surge from the N19.24 billion ($12.36 million) reported during the same period in 2023. This growth underscores Wema Bank’s operational efficiency and market strength.
