Access Holdings weighs foreign exit to meet Nigeria central bank capital rules

Access Holdings Plc, the largest bank in Nigeria by total assets, is evaluating the potential sale of at least one of its foreign subsidiaries. This strategic review is being conducted to ensure compliance with new regulations issued by the Central Bank of Nigeria (CBN), which restrict the amount of capital Nigerian banks can hold in overseas entities. The decision comes as the banking group seeks to align its international portfolio with stricter domestic capital requirements.

Aigboje Aig-Imoukhuede, who chairs Access Holdings, revealed this development while speaking to reporters at the African Financial Industry Summit in Luanda, Angola. Although the chairman did not name the specific territory from which the bank plans to withdraw, he acknowledged that the group has pinpointed at least one poorly performing subsidiary that may be sold. This potential exit is part of a broader effort to bring the group's foreign investments within the regulatory limits imposed by Nigerian authorities.

Background

This regulatory scrutiny arises from a Central Bank of Nigeria instruction that caps banks' equity stakes in foreign subsidiaries at 10% of their aggregate shareholders' funds. As of May 2026, Access Bank, the group's primary banking subsidiary, had foreign subsidiary investments standing at 19.4% of its shareholders' funds. This figure significantly exceeded the 10% threshold mandated by the regulator. Consequently, the CBN granted the lender a 12-month period to address this excess exposure, setting a deadline for compliance in March 2027.

Inocent Ike, the Chief Executive Officer of Access Holdings, outlined three specific strategies the group is pursuing to meet this statutory limit. Potential strategies involve repatriating excess capital from international branches, selling off minority interests, and reorganizing specific operational divisions. Ike stated that the group has already finished one capital repatriation initiative covering six selected subsidiaries. Furthermore, the bank is presently in discussions with authorities in five nations to enable the transfer of surplus funds back to Nigeria. Although the deadline is set for March, Aig-Imoukhuede indicated that the group aims to complete the necessary adjustments earlier than initially anticipated.

Why it matters

This restructuring is significant for the stability and compliance of Nigeria's largest financial institution. By reducing its foreign equity exposure, Access Holdings aims to strengthen its domestic capital base while adhering to central bank mandates designed to protect local liquidity. Even with the possible sale of an overseas entity, Aig-Imoukhuede asserted that the group's global portfolio remains robust. He stressed that the bank will keep evaluating its subsidiaries to guarantee they provide lasting returns and meet the strategic goals set at their inception. The situation highlights the increasing regulatory scrutiny on Nigerian banks' cross-border operations and the financial adjustments required to maintain compliance in a changing economic landscape.

What happens next

Access Holdings is actively working to bring its foreign investment ratio within the statutory 10% limit ahead of the March 2027 deadline. The group is finalizing its engagement with foreign regulators to process the return of capital and is assessing the viability of its remaining overseas operations. The bank has a history of exiting foreign markets when operations fail to meet strategic or financial expectations. For instance, in 2014, Access Bank sold its loss-making subsidiary in Ivory Coast to Cameroon’s Afriland First Group SA. That earlier withdrawal happened following a CBN ban on Nigerian lenders using parent-company capital to back foreign subsidiaries, a regulatory landscape that has since shifted to impose precise limits on equity ownership.