Onome Amuge
Wema Bank, Nigeria’s oldest indigenous lender, has exceeded its recapitalisation requirement after raising N157 billion through a rights issue, positioning itself for expansion as the Central Bank of Nigeria (CBN) pushes lenders to strengthen their balance sheets.
The mid-tier bank, known for its digital banking franchise ALAT, said the first phase of its capital-raising programme drew strong investor interest, which it attributed to confidence in its strategy, leadership and long-term growth prospects.
Prior to the capital raise, Wema held N200 billion in shareholders’ funds, but only N67 billion qualified as regulatory capital under CBN guidelines. To bridge the gap, the bank adopted a rights issue and a special placement.
The rights issue, which closed with subscriptions of N157 billion, is awaiting final verification and approval by the central bank. Once cleared, Wema’s qualifying capital will exceed N210 billion, comfortably above the N200 billion threshold required for national commercial banks. The lender has also launched a special placement to raise an additional N50 billion, with commitments already secured.
Moruf Oseni, Wema’s managing director and chief executive officer, said the enlarged capital base would give the bank greater scope to expand lending, invest in technology and deepen customer relationships.
“Our focus is on leveraging the strengthened capital base to drive sustainable growth, expand lending capacity, accelerate digital innovation, and enhance customer experience,” he said.
Market analysts described Wema’s success as a signal of investor confidence in a lender that has reinvented itself in recent years. Once regarded as a conservative regional bank, Wema has repositioned through digital platforms, targeting younger customers and SMEs.
“Wema Bank was the only indigenous bank to have weathered the economic storm for over eight decades. It’s a testament to both its resilience and adaptability. It has reconnected with the younger generation by deploying ICT solutions in its services. Shareholders are always ready to support the bank by buying more of its shares,” said Adebayo Adeleke, group managing director of The Lancelot Group.
Independent equity research has reinforced the optimism. Global Asset Management recently described Wema’s stock as undervalued relative to intrinsic worth, rating it a strong buy for long-term investors seeking both capital gains and dividends.
The lender’s share price has risen nearly 160 per cent year-to-date on the Nigerian Exchange, making it one of the standout performers of 2025. Analysts say with the new capital injection and strong fundamentals, Wema is well positioned for sustainable growth and could potentially transition to international bank status if it sustains momentum.
