BY MOSHOOD ISAMOTU / LAGOS
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Wema Bank Plc, Nigeria’s leading digital bank, has successfully concluded the first phase of its recapitalization capital raising exercise, securing ₦157 billion through a Rights Issue, exceeding its initial target and marking a significant milestone in its growth strategy.
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Providing an insight into the Bank’s capital raise, market watchers explained that before the capital raise, Wema Bank held ₦200 billion in shareholders’ funds, but only ₦67 billion qualified as regulatory capital.
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“ To address this, the Bank initiated a two-pronged capital raising strategy, comprising a Rights Issue and a Special Placement. The Rights Issue closed successfully, with subscriptions totaling ₦157 billion. The process is currently undergoing final verification by the Central Bank of Nigeria, with approval expected in the coming weeks. Upon confirmation, Wema Bank’s qualifying capital will rise above ₦210 billion, thereby exceeding the CBN’s minimum requirement.”, said a market watcher.
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Building on the strong investor interest demonstrated during the Rights Issue, Wema Bank launched a Special Placement on Monday, August 18, 2025, to raise an additional ₦50 billion. Investor commitments have already been secured, and the offer will remain open for only 10 days.
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Market watchers also expressed optimism that the capital raise would support the bank’s commitment to regulatory compliance, sustainable growth, and digital leadership in Nigeria’s evolving financial landscape.
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With the new capital in its fold and strong fundamentals, all the indices point to a gradual progression for Wema Bank to become an international bank in the near future.
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Under the leadership of Mr. Moruf Oseni, Managing Director/CEO, Wema Bank continues to consolidate its position as Nigeria’s most innovative digital bank.
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Commenting on the developments in the Bank, Oseni stated: “Upon meeting the recapitalization target, our focus is on leveraging the strengthened capital base to drive sustainable growth, expand lending capacity, accelerate digital innovation, and enhance customer experience.
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Group Managing Director, The Lancelot Group, Pastor Adebayo Adeleke, who echoed sentiment of many shareholders of the Bank, commended the Board and Management for a series of innovative products and services that characterize its operations.
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” Wema Bank was the only indigenous bank to have weathered the economic storm for over eight decades. It’s a testament to both its resilience and adaptability. It has reconnected with the younger generation by deploying ICT solutions in its services. Shareholders are always ready to support the bank by buying more of its shares.”, explained Adeleke.
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An independent equity analysis by Global Asset Management confirms that Wema Bank’s share is trading below its intrinsic value. The report recommends the stock for long-term investors looking to benefit from capital appreciation and dividend income within Nigeria’s evolving banking sector. It is recommended that Wema Bank’s stock is a worthwhile investment now and in the long run.
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On the local bourse, Wema, aside from being one of the investors’ delights, seems to have appreciated by almost 160%year to date (YTD).
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