Nigeria’s financial landscape is about to witness a significant shift as Access Holdings Plc, the parent company of the country’s largest bank by assets, embarks on an ambitious expansion plan. The company aims to raise ₦351 billion ($233 million) through a rights issue to fuel its transformation into “the world’s most respected African bank.”
When you are the largest bank in Nigeria and one of the largest banks in Africa, where do you go from here? Our vision is now global, very, very global.
Aigboje Aig-Imoukhuede, Access Holdings Plc Chairman.
This move signifies a bold evolution for Access Holdings. Established in 1989, the company has grown from a fledgling player into a financial behemoth. As Aigboje Aig-Imoukhuede, Access Holdings Plc Chairman, aptly stated during a presentation to shareholders and stakeholders at the Nigeria Exchange Limited (NGX), “When you are the largest bank in Nigeria and one of the largest banks in Africa, where do you go from here? Our vision is now global, very, very global.”
This global vision translates into a multi-pronged expansion strategy. Access Holdings will utilize the raised capital to venture into new markets, including the lucrative US market. Furthermore, they plan to establish a trade booking office in Malta, strategically positioning themselves for international financial operations.
However, the company’s commitment to global expansion does not stem from mere ego. “We are very selective in the markets we invest in,” emphasized Roosevelt Ogbonna, Access Bank MD/CEO. “We are chasing the money. It isn’t a return on ego. We focus on where the money is.”
However, the impact of the capital raise extends beyond Access Holdings’ global positioning. We will direct a significant portion of the funds towards bolstering domestic operations. Here’s a breakdown of the investment plan:
- Loan Book Growth (65%): ₦223.00 billion will be dedicated to expanding the loan book, allowing Access Bank to offer a wider range of lending services across corporate, commercial, retail, and SME segments. This will stimulate economic activity by providing much-needed access to capital for businesses of all sizes.
- Infrastructure Upgrade (20%): ₦68.62 billion to upgrade and develop the bank’s infrastructure. This investment will ensure a more robust and efficient technological platform capable of handling the demands of a growing customer base and facilitating seamless financial transactions.
- Distribution and Product Channels (15%): ₦51.46 billion will be invested in establishing new branches in key Nigerian cities like Lagos, Port Harcourt, and Abuja over the next 24 months. Additionally, resources will be channeled towards developing innovative products and services to cater to the evolving needs of customers.
Access Holdings’ ambitious plan comes on the heels of a remarkable growth trajectory. Following its acquisition in 2002 by Aigboje Aig-Imoukhuede and the late Herbert Wigwe, the company has pursued an aggressive expansion strategy focused on strategic acquisitions, both locally and internationally. This strategy has resulted in a presence across 18 countries. Key milestones include the 2012 merger with Intercontinental Bank, the 2019 merger with Diamond Bank, and the 2023 acquisition of majority shares in Standard Chartered Bank’s subsidiaries in several African nations. The most recent acquisition was by African Banking Corporation of Tanzania (ABCT) Limited in June 2024.
Read also: Access Bank expands in East Africa with Tanzanian bank acquisition.
Roosevelt Ogbonna, Access Bank MD/CEO, underscored the company’s remarkable transformation, stating, “There is no Nigerian bank that was our size in 2002 that is still alive today. Some of the banks that analysts now compare us with, you couldn’t mention Access beside those banks in 2002. It’d have been an insult to those institutions.”
Access Holdings’ capital raise and subsequent expansion plan promise to reshape the Nigerian financial landscape and establish the company as a major player on the global stage. Focusing on bolstering domestic operations, venturing into new markets, and fostering financial inclusion, Access Holdings aims to become a truly “African global brand” in the financial sector.
