Access Holdings, the parent company of Access Bank, is actively evaluating the divestment of at least one foreign subsidiary to align with strict Nigerian banking regulations governing overseas capital exposure. Addressing stakeholders, Chairman Aigboje Aig-Imoukhuede revealed that the financial institution has identified a specific international operation earmarked for potential sale due to regulatory frameworks that complicate continued ownership. Although deliberations remain ongoing without a finalized transaction, management has withheld specific details regarding the target business or the host country.
Financial records indicate that Access Bank’s investments in subsidiaries reached ₦446.6 billion by September 30, 2026, representing roughly 19.29% of its total shareholders’ funds. This figure exceeds the 10% threshold mandated by the Central Bank of Nigeria (CBN). Under the Banks and Other Financial Institutions Act (BOFIA) of 2020, domestic banks are prohibited from allocating more than 10% of their capital base to foreign subsidiaries unless granted a specific waiver by the apex bank. While the legislation permits international operations, it strictly caps the financial exposure permitted for such ventures.
How will Access Holdings achieve regulatory compliance?
To meet the March 2027 regulatory deadline, Access Holdings outlined a multifaceted strategy during its November 5 earnings call. The plan involves repatriating excess capital from international subsidiaries operating in seven African jurisdictions alongside one international market. Furthermore, the institution intends to offload minority stakes across five countries while maintaining at least an 80% controlling interest in each entity. This follows a previous divestment in July 2026, when the firm concluded the sale of a 7.44% equity stake in its Ghanaian subsidiary.
Beyond capital withdrawals and stake reductions, Access Holdings is reorganizing its corporate structure by establishing a dedicated global subsidiary and an intermediate holding company. These structural adjustments are designed to optimize international oversight while ensuring compliance with CBN statutory limits.
What are the implications for shareholders?
The regulatory pressure has directly impacted shareholder returns, with Access Holdings suspending its proposed dividend payout for the 2025 financial year pending full compliance with the foreign investment threshold. Management noted that future dividend disbursements remain contingent upon meeting statutory requirements and securing requisite approvals from regulatory authorities. As the March 2027 compliance window approaches, the potential full exit from a foreign market would represent a substantial shift in the institution's international expansion strategy.