The Central Bank of Nigeria (CBN) has approved an additional ₦75 billion for Sterling Holdings, bolstering its banking subsidiary’s efforts to comply with the revised minimum capital guidelines.
Under the CBN’s directive announced on March 28, 2024, commercial banks with international authorization must maintain ₦500 billion in capital, while those with national licenses require ₦200 billion.
For regional operators and merchant banks, ₦50 billion is mandated, and non-interest banks with national and regional authorizations need ₦20 billion and ₦10 billion, respectively.
A circular from the CBN signed by the Director of the Financial Policy and Regulation Department, Haruna Mustafa emphasized that all banks are to meet the minimum capital requirement within 24 months commencing April 1, 2024, and terminating on March 31, 2026.
This approval from the apex bank represents the final leg of capital injection by Sterling Bank, achieved through a private placement in September 2024, and is expected to be topped up with a public offer in 2025.
Building on the private placement’s success, Sterling launched a Rights Issue in October 2024 to provide an exclusive opportunity for existing shareholders to deepen their stakes in the company and share in its growth story.
The Rights Issue received significant interest and participation, highlighting the confidence and trust the company has cultivated among its shareholders over the years. Regulatory approval for the process is underway, marking another significant step in the recapitalization journey.
The final phase of Sterling Bank’s recapitalization process is the forthcoming Public Offer, which will present an exciting opportunity for new individuals to invest in the company. This will allow wider public participation and strengthen its commitment to shared value creation.
