Table of Contents
Key Points
- Wema Bank, partly owned by Nigerian gambling magnate Kessington Adebutu, seeks to raise N149.3 billion ($98.9 million) via a rights issue.
- The move aligns with the Central Bank of Nigeria’s new capital requirements, mandating higher capital reserves for financial institutions.
- The lender reported a 146.8% surge in annual profit, signaling strong market performance.
Wema Bank, a leading Nigerian financial institution partly owned by gambling magnate Kessington Adebutu, is raising N149.3 billion ($98.9 million) through a rights issue as part of its broader plan to meet new regulatory capital requirements. The offering includes 14.29 billion shares priced at N10.45 ($0.007) each, reinforcing the bank’s efforts to strengthen its financial position.
The bank has submitted an application to the Nigerian Exchange Limited (NGX) for approval and listing, with Global Asset Management Nigeria Limited and Qualinvest Capital Limited serving as stockbrokers.
Existing shareholders will be able to purchase two new shares for every three they held as of March 5, 2025. This capital raise is key to ensuring Wema Bank meets the Central Bank of Nigeria’s (CBN) March 2026 deadline for higher capital reserves.
CBN’s recapitalization directive
Last year, the CBN directed deposit money banks (DMBs) to boost their capital base to strengthen the financial sector. Under the new rules, international banks must raise their minimum capital to N500 billion ($331.1 million), national banks to N200 billion ($132.43 million), and regional banks to N50 billion ($33.1 million) by March 31, 2026. As a national bank, Wema Bank is taking steps to comply with the new requirements.
Adebutu’s stake and Wema Bank’s financial performance
Kessington Adebutu, the founder of Premier Lotto Limited, owns 28.26 percent of Wema Bank through Neemtree Limited, an investment vehicle created in 2013 for strategic acquisitions. His daughter, Abolanle Matel-Okoh, also holds a 4.54 percent stake in the bank.
The lender recently reported a net profit of N88.83 billion ($58.87 million) for 2024, marking a 146.8 percent increase from N35.98 billion ($23.85 million) in 2023. The sharp rise in earnings highlights Wema Bank’s strong operational performance and market positioning.
Broader capital-raising plans
As Nigeria’s banking sector undergoes regulatory changes, Wema Bank is actively working to strengthen its financial base. The bank previously announced plans to raise N200 billion ($132.6 million) through a combination of a rights issue and private placement, with the next phase set to launch on April 1, 2025.
So far, Wema Bank has already secured N40 billion ($26.5 million) in the first tranche of its recapitalization efforts, reinforcing its commitment to staying ahead of regulatory requirements while supporting long-term growth.
