Wema Bank completed its recapitalization, surpassing the minimum capital requirement by 32%

Wema Bank Plc has successfully completed its recapitalisation exercise, achieving a capital position that exceeds the Central Bank of Nigeria’s (CBN) minimum capital requirement by 32 percent. The milestone positions the bank among the first financial institutions in Nigeria to fully comply with the apex bank’s revised capital directive ahead of schedule.

The bank’s management, in a statement, said the recapitalisation exercise reflects Wema’s strong financial resilience, investor confidence, and commitment to sustaining long-term growth and stability. The achievement also underscores the institution’s strategic vision of deepening its market presence and enhancing its role as a leading player in Nigeria’s digital and retail banking landscape.

The recapitalisation move follows the CBN’s directive earlier in the year, which required commercial banks to shore up their capital bases within 24 months to strengthen the financial system. Under the new structure, national banks are mandated to hold a minimum capital base of ₦200 billion, while regional and international banks are expected to maintain ₦50 billion and ₦500 billion respectively.

According to the bank’s Managing Director and Chief Executive Officer, Moruf Oseni, Wema Bank’s proactive approach to the recapitalisation process demonstrates its prudence and operational strength. He revealed that the bank achieved its new capital level through a combination of rights issues, private placements, and retained earnings, ensuring minimal disruption to shareholders and customers.

“We are delighted to announce that Wema Bank has successfully completed its recapitalisation exercise with a capital base that is 32 percent above the CBN’s minimum requirement. This reflects our commitment to operational excellence, financial integrity, and long-term value creation for our stakeholders,” Oseni stated.

He added that the successful capital raise will enable the bank to expand its lending capacity, invest in innovative financial technologies, and further support small and medium-sized enterprises (SMEs) — a key sector in Nigeria’s economic development.

Oseni noted that the completion of the recapitalisation exercise is a testament to the trust and confidence reposed in Wema Bank by its shareholders and investors. “We have consistently demonstrated financial discipline and strategic foresight. With this recapitalisation milestone, we are even better positioned to drive growth, enhance customer experience, and deliver sustainable returns,” he said.

The bank also emphasized that the additional capital would strengthen its balance sheet, improve liquidity, and enhance compliance with evolving regulatory standards. This, according to management, would enable Wema to withstand market shocks and take advantage of emerging opportunities in Nigeria’s financial sector.

Industry observers have described Wema Bank’s early compliance as a significant achievement that sets a positive tone for other banks still working toward meeting the CBN’s recapitalisation deadline. Dr. Uche Uwaleke, a financial economist, commended the bank for its strategic foresight, noting that early compliance would enhance its credibility and competitiveness in the industry.

“Wema Bank’s success shows strong corporate governance and financial prudence. Being ahead of regulatory timelines gives the bank a distinct advantage, especially in capital planning and investor confidence,” Uwaleke said.

He further noted that the recapitalisation exercise across the banking sector is aimed at strengthening the resilience of Nigeria’s financial system, ensuring that banks are better positioned to support economic growth, manage risks, and meet the credit needs of businesses and individuals.

Wema Bank, which operates as one of Nigeria’s oldest indigenous banks, has in recent years gained recognition for its technological innovation, particularly through its digital banking platform ALAT, the country’s first fully digital bank. The institution has leveraged technology to expand financial inclusion and attract a younger demographic of customers.

The recapitalisation success, analysts believe, will allow Wema Bank to build on this digital strength, diversify its income streams, and finance larger projects in key sectors such as agriculture, renewable energy, and infrastructure.

In his remarks, the bank’s Chairman, Mr. Babatunde Kasali, expressed appreciation to shareholders, regulators, and partners for their unwavering support throughout the recapitalisation process. He assured that the additional capital would be deployed strategically to deliver greater value across all business segments.

“This milestone marks a new phase in our growth journey. We are proud of the confidence our investors have shown, and we remain committed to prudent capital management and sustainable profitability,” Kasali said.

He reiterated that Wema Bank will continue to operate with transparency and accountability, in line with global best practices, while pursuing initiatives that align with Nigeria’s financial inclusion and economic diversification goals.

With its recapitalisation now concluded, Wema Bank joins a growing list of early-compliant financial institutions, positioning itself for stronger performance amid Nigeria’s evolving banking reforms.

Analysts predict that the bank’s enhanced capital base will provide it with the leverage to scale operations, introduce innovative products, and compete effectively in a fast-changing financial services landscape.

 

As the recapitalisation wave continues across the industry, Wema Bank’s success story stands as a model of proactive leadership, investor trust, and regulatory alignment — setting the pace for a more robust and competitive Nigerian banking sector.