Access Holdings faces N215bn capital adjustment as CBN deadline approaches

Group moves to reduce foreign subsidiary exposure, restructure overseas operations and resolve regulatory hurdle delaying dividend payments

Access Holdings Plc may need to reduce its investments in subsidiaries by approximately N215 billion to comply with the statutory limit prescribed by the Banks and Other Financial Institutions Act (BOFIA), as the Central Bank of Nigeria (CBN) sets March 2027 as the deadline for compliance.

The financial services group disclosed that its investment in subsidiaries stood at N446.6 billion as of September 30, 2026, representing 19.29 per cent of shareholders’ funds, significantly above the 10 per cent ceiling stipulated under Section 19(8)(c) of BOFIA.

Based on the reported figures, the group would need to reduce the investment ratio by approximately N215 billion, assuming its shareholders’ funds remain unchanged.

To address the regulatory gap, Access Holdings has commenced a capital-recall programme across seven markets, comprising six African countries and one other international market.

The programme involves repatriating surplus capital from overseas subsidiaries, selling minority interests in selected businesses and restructuring its international operations through a global subsidiary and intermediate holding company framework.

Management said capital from one market had already been returned to Nigeria, while the remaining transactions were undergoing regulatory processing.

The group is also pursuing minority stake disposals in five countries while seeking to retain controlling interests in the affected subsidiaries. It completed the sale of a 7.44 per cent stake in Access Bank Ghana in July 2026.

Access Bank Managing Director, Roosevelt Ogbonna, said the programme was designed to achieve regulatory compliance without undermining the capital strength of its subsidiaries or shareholders’ interests.

The regulatory issue has also affected dividend payments, with the group unable to distribute dividends for the 2025 financial year.

Management said resolving the BOFIA requirement would remove the outstanding regulatory constraint on dividend consideration, although future distributions would remain subject to board recommendation and CBN approval.

Meanwhile, Access Holdings recorded profit before tax of N667.36 billion in the nine months ended September 20230, representing an 8.3 per cent increase from the corresponding period of 2025.

Profit after tax also rose by 5.9 per cent to N474.17 billion.

The group expressed confidence that its capital restructuring programme would be completed within the CBN’s March 2027 timeline.