Why Nigeria’s Top Banks Are Raising Capital Early: Meristem Explains
Nigeria’s tier-1 banks are moving swiftly to raise capital ahead of the recapitalization deadline, and Meristem Securities has shed light on why they are acting early.
At the Meristem 2025 Annual Outlook Conference in Lagos, the Group Managing Director of Meristem Securities, Sulaiman Adedokun, provided insights into the strategic moves of major banks like Access Holdings, GTCO, Fidelity Bank, Sterling Financial Holdings, FCMB Group, FBN Holdings, and UBA, all of whom have entered the market to raise funds through public offers and rights issues.
Why Are Banks Raising Capital Now?
Adedokun explained that Nigeria’s top banks play a critical role in the economy, and with the government’s $1 trillion GDP target, strong financial institutions are essential.
️ “The big banks need to be recapitalized. They need to do more. The other banks that have not started anything, I’m sure they have their plans. You need to strategize on how you want to raise equity or capital to meet up,” he stated.
Mergers & Acquisitions on the Horizon?
As banks scramble to meet the new capital requirements, Adedokun hinted that mergers and acquisitions could be inevitable, especially for struggling banks.
He also touched on the CBN-appointed management teams for banks whose leadership was replaced in January 2024, emphasizing that their first task is to stabilize the banks.
️ “We don’t want to witness failures in the banking sector because of the role it plays in the economy,” he asserted.
Inflation & Investment Strategies for 2025
Adedokun also addressed the inflation crisis, which has eroded Nigerians’ purchasing power.
Key Takeaways:
✅ Inflation peaked at 34%, hurting households and businesses.
✅ Investors must adopt strategies that outpace inflation to secure positive returns.
✅ The economy is undergoing major reforms, and 2025 is expected to be better than 2024.
️ “If you are investing now and getting about 16% while inflation is at 34%, that is a negative return. We need to plan our investments carefully.”
Youth Empowerment & Entrepreneurship in 2025
Meristem plans to focus on empowering young Nigerians with financial education and entrepreneurship programs.
Why This Matters:
Many young entrepreneurs lack funding despite great business ideas.
Meristem aims to bridge this gap through education and investment opportunities.
The firm will roll out new initiatives throughout 2025.
️ “Youths are the hope of our future. If we empower them, we are better off.”
Pension Funds Now Included in GDP Calculation
Meristem Stockbrokers MD, Saheed Bashir, hailed the inclusion of pension funds in Nigeria’s rebased GDP, calling it a big win for the economy.
What This Means:
✅ More accurate economic data for planning and investment.
✅ Increased focus on pension sector growth.
✅ A potential boost for long-term financial security.
️ “This is a major reform that will propel the economy to the next level.”
Bottom Line: What’s Next for Nigerian Banks?
With the recapitalization deadline fast approaching, banks are moving strategically to secure their financial positions. Those who delay may have to merge or acquire to stay afloat.
Key Questions:
1️⃣ Will we see more banks entering the market to raise capital?
2️⃣ How will smaller banks adapt to the changing landscape?
3️⃣ Will inflation slow down in 2025, improving investment returns?
Stay tuned for more insights on Nigeria’s financial sector!
Nigeria’s tier-1 banks are moving swiftly to raise capital ahead of the recapitalization deadline, and Meristem Securities has shed light on why they are acting early.
At the Meristem 2025 Annual Outlook Conference in Lagos, the Group Managing Director of Meristem Securities, Sulaiman Adedokun, provided insights into the strategic moves of major banks like Access Holdings, GTCO, Fidelity Bank, Sterling Financial Holdings, FCMB Group, FBN Holdings, and UBA, all of whom have entered the market to raise funds through public offers and rights issues.
Why Are Banks Raising Capital Now?
Adedokun explained that Nigeria’s top banks play a critical role in the economy, and with the government’s $1 trillion GDP target, strong financial institutions are essential.
️ “The big banks need to be recapitalized. They need to do more. The other banks that have not started anything, I’m sure they have their plans. You need to strategize on how you want to raise equity or capital to meet up,” he stated.
Mergers & Acquisitions on the Horizon?
As banks scramble to meet the new capital requirements, Adedokun hinted that mergers and acquisitions could be inevitable, especially for struggling banks.
He also touched on the CBN-appointed management teams for banks whose leadership was replaced in January 2024, emphasizing that their first task is to stabilize the banks.
️ “We don’t want to witness failures in the banking sector because of the role it plays in the economy,” he asserted.
Inflation & Investment Strategies for 2025
Adedokun also addressed the inflation crisis, which has eroded Nigerians’ purchasing power.
Key Takeaways:
✅ Inflation peaked at 34%, hurting households and businesses.
✅ Investors must adopt strategies that outpace inflation to secure positive returns.
✅ The economy is undergoing major reforms, and 2025 is expected to be better than 2024.
️ “If you are investing now and getting about 16% while inflation is at 34%, that is a negative return. We need to plan our investments carefully.”
Youth Empowerment & Entrepreneurship in 2025
Meristem plans to focus on empowering young Nigerians with financial education and entrepreneurship programs.
Why This Matters:
Many young entrepreneurs lack funding despite great business ideas.
Meristem aims to bridge this gap through education and investment opportunities.
The firm will roll out new initiatives throughout 2025.
️ “Youths are the hope of our future. If we empower them, we are better off.”
Pension Funds Now Included in GDP Calculation
Meristem Stockbrokers MD, Saheed Bashir, hailed the inclusion of pension funds in Nigeria’s rebased GDP, calling it a big win for the economy.
What This Means:
✅ More accurate economic data for planning and investment.
✅ Increased focus on pension sector growth.
✅ A potential boost for long-term financial security.
️ “This is a major reform that will propel the economy to the next level.”
Bottom Line: What’s Next for Nigerian Banks?
With the recapitalization deadline fast approaching, banks are moving strategically to secure their financial positions. Those who delay may have to merge or acquire to stay afloat.
Key Questions:
1️⃣ Will we see more banks entering the market to raise capital?
2️⃣ How will smaller banks adapt to the changing landscape?
3️⃣ Will inflation slow down in 2025, improving investment returns?
Stay tuned for more insights on Nigeria’s financial sector!