Coronation Merchant Bank has completed its recapitalisation, raising its paid-up capital to N50.26 billion and meeting the Central Bank of Nigeria’s minimum requirement for merchant banks.
The bank raised N32.09 billion in new equity through a combination of rights issues and private placement, with strong support from existing shareholders and strategic investors.
The capital injection strengthens the bank’s balance sheet and positions it for expanded operations in lending, investment banking, and financial markets.
Chairman Babatunde Folawiyo stated that the successful completion of the capital raise reflects the strong confidence shareholders have in the bank’s strategy and long-term vision.
Managing Director Paul Abiagam added that the increased capital base enhances the bank’s ability to deliver greater value to clients and drive innovation in its service offerings.
The funds will fuel expansion across investment banking, treasury operations, and corporate relationships, enabling better support for Nigeria’s top firms and deeper market participation.
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The move follows the CBN’s revised capital requirements for commercial, merchant, and non-interest banks announced in March 2024 as part of efforts to strengthen the financial system.
Merchant banks were required to meet the N50 billion minimum capital threshold within 24 months, with the deadline set for March 31, 2026.
The recapitalisation drive aims to enhance the resilience of Nigerian banks, enabling them to support larger transactions and absorb potential shocks in the operating environment.
Coronation Merchant Bank’s successful capital raise demonstrates investor confidence in its financial stability and growth prospects amid the broader industry recapitalisation exercise.
Several other banks are at various stages of meeting the new capital requirements, with some pursuing public offerings, rights issues, or mergers and acquisitions to comply.
The banking sector regulator has emphasized that the exercise is critical for positioning Nigerian banks to compete effectively in the African Continental Free Trade Area and support the government’s goal of a $1 trillion economy.
