E-Financial
Access Holdings to Use Tech in Raising N365bn Capital
Access Holdings, the parent company of Nigeria’s largest bank, Access Bank, has said that it will be going fully digital for its N365bn rights issue.
Bolaji Agbede, the Group Chief Executive Officer of Access Holdings
In a notice filed with the Nigerian Exchange Limited, the holding company said it was seeking to raise N365bn through a rights issue to fortify its capital base, support expansion and its ability to seize emerging opportunities in the financial sector.
It is also seeking a combined capital raise of up to $1.5bn via equity, quasi-equity, and debt issuances.
Speaking with journalists at the second Annual General Meeting of the Holdco, the chairman, Aigboje Aig-Imoukhuede, disclosed that digital technology would play an interesting role in the bank’s capital-raising efforts.
He said, “If you remember the 2004 capital raising, we went around Nigeria. It led to the democratisation of our capital market, others followed suit. The number of shareholders of banks and the capital market increased as a result of that effort.
“This time around, we have digital technology that we are going to deploy fully. There have been public offers that have leveraged digital technology but using Access Bank’s capacity, the NGX’s digital capacity, we are going to do some interesting things.
This rights issue, we have shareholders and each of them would be able to make that investment decision just by touching their phones. That way, the issue of dilution and concerns that they may have about participation would be dealt with.”
On the floor of the AGM, Aig-Imoukhuede took shareholders down memory lane to 2004 when the banking group raised funds and said that they were equal to the task.
He said, “We’re moving on to the rights issue resolution. At this junction, I think we’ll take one minute to crave your indulgence as I appreciate you all for the support you have given our predecessor company, Access Bank, and of course now Access Holdings.
“We have sought to raise capital. The amount that we mention today is high and significant and the capital-raising effort that we are pursuing is a significant step into the future.
“I would like to remind shareholders that between 2004 and 2007, our team when I was CEO raised $2bn of common equity capital. Therefore, come 2024, Access Bank is much older, much wiser, much stronger, larger and significantly respected by the capital market, really raising over N300bn is not much of a challenge.”
Aig-Imoukhuede, who co-founded Access Bank with the late Herbert Wigwe, encouraged minority shareholders to take up their rights, saying, “We are interested in shareholders; large, small continuing with us on our journey. We have always had a unique relationship with the capital market locally and internationally.
“They have always supported us when we come up with good reasons and the performance that would be delivered after such capital raising efforts, so we signalled to the market first that we would be doing a rights issue, what does that mean? We have large institutional shareholders and others but we believe that we must carry everybody along.
“They have been with us thus far and this is not the time to say that we are going to raise money and because a few can do it, no, everybody is going to participate in this capital-raising exercise.”
Speaking on the utilisation of the proceeds from the rights issue, Bolaji Agbede, the Group Chief Executive Officer of Access Holdings, said the banking subsidiary would be getting a huge chunk of it to meet the regulatory requirements of the apex bank.
Agbede said, “In terms of the proceeds from the rights issue which we are hoping to get about N365bn, we will be giving the bulk of it to the banking group to enable them to meet the CBN’s capital requirement.
“Part of the things that they are using it for is as working capital requirements for investment in African subsidiaries as some of the growth in the international subsidiaries that they have.
“If you look at all the headwinds that are coming along, it is important that you have a robust capital plan and this is one of those things that would help them. The other thing that we will also be doing is that some of the amount, not as much as the banking group of course would be going into the non-banking subsidiaries as well.”
FirstBank has formally denied allegations of fraud in an ongoing court case filed by customer Dr. Agbai Eke, describing the claims as “entirely unfounded and false.”
According to a statement from the bank, their internal investigation points to “unprofessional and unethical dealings” between Dr. Eke and a former bank employee.
FirstBank claims these individuals used a personal relationship to conduct unauthorised transactions without the bank’s knowledge or involvement.
The bank said it has reported the matter to law enforcement authorities for further investigation.
Officials noted that suspects have already provided statements to investigators.
FirstBank also declined to provide additional details, citing the ongoing court proceedings.
“We will refrain from further comments to allow the Court to dispassionately determine the issues before it,” the bank stated.
The case gained public attention following reports by Thisday Newspaper and Arise Television, as well as through a circulating video regarding the legal dispute.
Nigeria is undergoing a significant shift toward digital payment methods, with cash payments projected to decline by 32 percent by 2030, according to Worldpay’s Global Payment Report 2024 (GPR).
This is because access to financial services in remote areas via smartphones has transformed millions of people’s access to the global economy.
According to the report, Nigeria led Middle Eastern and African countries in cash dominance for point-of-sale transactions, accounting for 40 percent of 2024 PoS value from 91 percent in 2019.
The report said the use of cash in Nigeria is higher when compared to the MEA region including Saudi Arabia with 22 percent in 2024, South Africa (30 percent), and the UAE (17 percent).
“Over the past decade, Nigeria has witnessed progress in financial inclusion. According to the World Bank, the percentage of banked Nigerians increased from 30 percent in 2011 to 45 percent in 2021. Similarly, South Africa’s banked population grew from 54 percent in 2011 to 85 percent in 2021,” it said.
The Nigerian Inter-Bank Settlement System (NIBSS) reported that the number of active bank accounts surged to 311 million in 2024, further underscoring the country’s rapid financial transformation.
The global report disclosed that account-to-account (A2A) transfers via the NIBSS Instant Payments (NIP) have emerged as the leading e-commerce payment method in Nigeria.
Furthermore, A2A payments via NQR are now the second most popular payment method at the PoS, trailing only cash. This surge in A2A usage underscores the growing adoption of instant payment systems in the country.
Recent data shows that electronic payment transactions in Nigeria rose to an all-time high of N1.07 quadrillion in 2024. This is a 79.6 percent increase from the N600 trillion recorded in 2023.
Beyond transaction value, the volume of e-payments also saw a substantial increase. The total number of transactions processed by NIBSS rose from 9.7 billion in 2023 to 11.2 billion in 2024, representing a 15.5 percent year-on-year growth.
Also, PoS transactions soared to N19.4 trillion in 2024, marking an 81 percent increase from N10.73 trillion in 2023.
Industry experts attributed the surge in electronic transactions to a combination of factors, including the cash scarcity experienced in early 2023 and the continued implementation of the Central Bank of Nigeria’s (CBN) cashless policy.
The GPR report highlights MEA’s progress in digital payments, with e-commerce transactions accounting for 29 percent of total value in 2014. By 2024, digital payments represented 49 percent, nearly matching the combined value of cash and card transactions (51 percent). By 2030, digital payments are expected to dominate e-commerce, making up 65 percent of transaction value.
“The shift is even more pronounced at PoS. In 2014, digital payments accounted for only 1 percent of PoS transaction value. By 2024, they had grown to one-third of the market. Worldpay projects that by 2030, digital payments will account for 47 percent of PoS transaction value, nearly equalling traditional cash and card payments,” it said.
Nigerian Computer Society (NCS) has expressed concern over the Federal Government’s decision to replace Remita Payment Service Ltd with the Treasury Management and Revenue Assurance System.
Dr. Sirajo Aliyu, president, NCS, who spoke a press conference in Lagos, highlighted the potential impact of the decision on Nigeria’s indigenous Information Technology (IT) sector.
Remita, a subsidiary of SystemSpecs Software Technology Group, has provided payment solutions for individuals and organisations for nearly two decades, maintaining a 100 per cent Nigerian workforce. The government’s move, announced on 4 March, has raised concerns about its implications for local IT firms and the wider economy.
Dr Aliyu warned that replacing Remita could send the wrong message to local IT companies, discouraging investment in homegrown technological solutions.
He emphasised that the Treasury Single Account (TSA), powered by Remita, was a fully indigenous project that had been globally recognised for its success.
“We are concerned that this decision could undermine confidence in Nigeria’s IT industry.”
“While the government has the right to make changes, such decisions should involve extensive consultation with stakeholders to avoid unintended consequences,” Aliyu stated.
He added that the TSA had improved transparency, increased government savings, and enhanced operational efficiency in fund management. The sudden replacement of the platform, he cautioned, could disrupt these benefits.
Prof. Charles Onyeukwu, vice-president, NCS, also urged the government to reconsider its decision, noting that Remita had been selected through a rigorous process involving both local and international firms.
He suggested that instead of replacing the system, an Application Programming Interface (API) could be introduced to allow additional service providers to integrate with it.
“We believe a collaborative approach would ensure continuity while enhancing the system’s functionality,” Onyeukwu said.
A memo from the Office of the Accountant-General of the Federation confirmed that the Treasury Management and Revenue Assurance System would be implemented in two phases, starting on 4 March 2025.
The new system is designed to streamline revenue collection and payments across ministries, departments, and agencies.
The NCS, Nigeria’s premier body for computing and IT professionals, has called on the government to engage with Remita and other stakeholders to find a solution that supports both national development and the growth of the indigenous IT sector.
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