Nigeria’s Access Bank to sell foreign units after Central Bank order

Access Holdings Plc, Nigeria’s largest lender by assets, plans to scale back equity stakes in some of its overseas units to comply with new rules from the Central Bank of Nigeria, tightening limits on banks’ foreign investments. 

The lender, which operates in more than 20 markets, has 12 months to meet the requirement, Roosevelt Ogbonna, chief executive of its banking unit, said on an investor call in Lagos on Tuesday. The central bank now caps equity exposure to foreign subsidiaries at 10 percent of shareholders’ funds, part of a broader effort to curb risk and bolster capital buffers across the sector.

Central bank rules reshape expansion

For Access Bank, one of Africa’s most expansive lenders by footprint, the directive signals a change in pace. Years of dealmaking helped build a presence across Africa, Europe and Asia, widening its earnings base but also adding layers of regulatory and currency risk. 

Under the new limit, the bank is expected to dilute stakes or bring in new investors in some subsidiaries. Any changes are likely to be gradual, allowing the group to keep a foothold in key markets while meeting the threshold. 

The central bank, led by Governor Olayemi Cardoso, has stepped up oversight as lenders expand beyond Nigeria in search of growth and a hedge against volatility at home. The new cap suggests a shift toward stronger balance sheets and more measured expansion.

Access Holdings posts mixed Q1 results

Access Holdings’ first-quarter results reflect both growth and pressure points. Interest income fell 9% to N895.03 billion ($656.4 million), while net interest income dropped 26.7% to N338.86 billion ($248.1 million). Profit after tax rose to N216.54 billion ($158.3 million) from N182.75 billion ($133.8 million) a year earlier, supported by a 19 percent increase in non-interest income to N444.68 billion ($325.7 million). 

Total assets climbed to N53.44 trillion ($39.07 billion), with shareholders’ equity at ₦4.39 trillion ($3.2 billion). Retained earnings increased to N1.99 trillion ($1.4 billion). The group also reported N73.81 billion ($54.1 million) in impairment charges for the quarter, underscoring the cost of navigating a more complex operating environment. 

Access Bank shifts efficiency focus

The new foreign exposure cap is expected to push banks to reassess how they allocate capital across regions. For Access Bank, which has used acquisitions to build scale outside Nigeria, the focus now shifts toward efficiency and compliance rather than expansion. 

Even so, the group’s international strategy is not expected to unwind. Instead, it is likely to evolve into a more selective model, shaped by tighter regulation and a stronger emphasis on returns and balance sheet resilience.

Access Bank, a subsidiary of Access Holdings Plc, operates more than 700 branches and service outlets across 24 markets, serving over 60 million customers. The latest policy shift suggests a more cautious phase of international banking expansion, shaped less by scale and more by capital discipline and regulatory compliance.