Sterling Bank Plans $400m Capital Raise To Meet CBN Deadline
THECONSCIENCE NG reports that Sterling Financial Holdings Company has announced plans to raise $400 million in capital across multiple phases and instruments as part of its broader strategy to expand operations and meet new regulatory requirements set by the Central Bank of Nigeria (CBN).
According to Bloomberg, Abubakar Suleiman, CEO of the group’s Sterling Bank subsidiary, confirmed the development in a phone interview on Wednesday, stating that the funding will support the bank’s “long-term ambition to strengthen capital, deepen market presence and support sustainable growth.”
The capital raise will involve multiple currencies and be executed in stages, the business-focused online newspaper reported, adding that separately, the Lagos-based bank is preparing to launch a public share offer within the current quarter to raise ₦100 billion ($65 million), in what Suleiman described as the final leg of its recapitalisation programme.
So far, Sterling has secured ₦89.75 billion from earlier rights issues and private placements. With a remaining gap of ₦52.2 billion, the bank is intensifying efforts to close the shortfall by the end of the year.
The fundraising is part of a broader compliance push by Nigerian banks following new capital requirements introduced by the Central Bank of Nigeria (CBN). The directive, which set a March 2026 deadline, mandates banks to bolster their capital bases in response to prolonged macroeconomic instability, including high inflation, weak economic growth, and repeated currency devaluations.
Sterling Bank plans $400m capital raise to meet C
Sterling Bank has made history by migrating to what is believed to be the continent’s first ever indigenous core banking solution called SeaBaaS.
Sterling Financial Holdings Company has announced plans to raise $400 million in capital across multiple phases and instruments as part of its broader strategy to expand operations and meet new regulatory requirements set by the Central Bank of Nigeria (CBN).
According to Bloomberg, Abubakar Suleiman, CEO of the group’s Sterling Bank subsidiary, confirmed the development in a phone interview on Wednesday, stating that the funding will support the bank’s “long-term ambition to strengthen capital, deepen market presence and support sustainable growth.”
The capital raise will involve multiple currencies and be executed in stages, the business-focused online newspaper reported, adding that separately, the Lagos-based bank is preparing to launch a public share offer within the current quarter to raise ₦100 billion ($65 million), in what Suleiman described as the final leg of its recapitalisation programme.
So far, Sterling has secured ₦89.75 billion from earlier rights issues and private placements. With a remaining gap of ₦52.2 billion, the bank is intensifying efforts to close the shortfall by the end of the year.
The fundraising is part of a broader compliance push by Nigerian banks following new capital requirements introduced by the Central Bank of Nigeria (CBN). The directive, which set a March 2026 deadline, mandates banks to bolster their capital bases in response to prolonged macroeconomic instability, including high inflation, weak economic growth, and repeated currency devaluations.
In addition to stricter capital thresholds, the CBN this month asked banks to submit formal plans on how they intend to close capital gaps. It also ended long-standing waivers on non-performing loans, aiming to strengthen the banking system’s resilience.
According to Bloomberg, while Suleiman did not provide specifics, he disclosed that Sterling plans to diversify beyond its two banking subsidiaries. The company recently increased the capital base of its non-interest arm, The Alternative Bank, to meet the ₦20 billion regulatory requirement for standalone banks.
Sterling’s expansion plans, which align with its holding company structure adopted in recent years, mark another strategic response to an evolving regulatory landscape reshaping Nigeria’s financial services sector.
