CBN's New Capital Rules May Spark N972bn Equity Race

The Central Bank of Nigeria's proposed capital framework could necessitate an equity raise of approximately N972 billion among major banks. Access Holdings Plc is projected to require N656.037 billion, while FCMB Group Plc needs N135.033 billion.

Other banks affected include Guaranty Trust Holding Company Plc, which may need N56.019 billion, and Stanbic IBTC Holdings Plc, estimated at N11.839 billion. Renaissance Capital anticipates that if the Central Bank adopts the draft rules without significant changes, banks will redeploy excess capital and downgrade their international licenses.

The capital coverage ratio for Access Holdings is expected to rise from 0.6 times to 1.2 times post-guideline, with FCMB's paid capital likely increasing from N480.616 billion to N615.649 billion. Guaranty Trust's paid capital is estimated to rise from N518.880 billion to N574.899 billion, while Stanbic's is expected to increase from N255.006 billion to N266.845 billion.