Access Holdings eyes foreign subsidiary exit to meet CBN 10% cap
Access Holdings, Nigeria's largest bank by assets, is considering selling at least one underperforming foreign subsidiary to comply with CBN rules capping equity investments in overseas units at 10% of shareholders' funds. Chairman Aigboje Aig-Imoukhuede confirmed this at the African Financial Industry Summit in Luanda, Angola last week, saying "I can think of one" troublesome subsidiary that doesn't meet its cost of capital.
The bank's foreign subsidiary exposure stood at 19.4% in May—nearly double the limit. CBN gave Access 12 months to comply, with a March 2025 deadline. CEO Innocent Ike says the group is pursuing three strategies: recalling surplus capital from six targeted subsidiaries (one repatriation already done), divesting minority stakes, and restructuring businesses. They're engaging regulators in five countries to facilitate capital returns.
Aig-Imoukhuede says they're ahead of schedule, targeting January completion. Access previously exited Ivory Coast in 2014 under similar pressure and sold a 7.44% stake in its Ghana unit via the Ghana Stock Exchange in July 2026.
Despite the potential exit, leadership insists the international portfolio remains fundamentally strong. The move signals CBN's willingness to enforce capital adequacy rules across borders—other Nigerian banks with heavy foreign exposure may face similar scrutiny.
Will this prompt a broader reshaping of Nigerian banks' African footprint, or will most meet the threshold through capital recalls and minority sales?