Four Nigerian banks—Zenith Bank, Access Holdings, FCMB Group, and Fidelity Bank—have rejected a total of N4.8 billion in investor subscriptions as part of the ongoing recapitalization exercise in the banking sector. The rejected funds were due to multiple rights subscriptions, ineligibility of shareholders, and failure to pass the Central Bank of Nigeria’s (CBN) Capital Verification Exercise (CVE), among other reasons.
The CVE is a regulatory measure by the CBN to ensure banks comply with the minimum capital requirements necessary for financial stability. As part of the recapitalization process, these banks have collectively raised approximately N1.02 trillion from their rights issues and public offers on the Nigerian Exchange Limited (NGX).
Access Holdings secured N351.01 billion through its rights issue but rejected N1.88 billion in subscriptions. The bank disclosed that 81 applications for 26.77 million shares, worth N528.8 million, were deemed invalid. Additionally, 68.42 million shares, valued at N1.35 billion, failed to meet the CBN’s CVE criteria.
Zenith Bank raised N350.46 billion through hybrid offers but turned down N1.04 billion in investor subscriptions. The bank reported that a single application for five million shares was disqualified by the CBN’s verification process.
The recapitalization exercise is part of ongoing efforts to strengthen Nigeria’s banking sector, ensuring financial institutions meet regulatory standards for stability and growth.
