EXCLUSIVE: Access Holdings shifts to consolidation phase after expansion drive

Access Holdings Plc, Nigeria’s largest lender by assets, is entering a crucial consolidation phase in 2025 and 2026, marking the second stage of its ambitious five-year strategy aimed at becoming Africa’s most respected bank. This follows an intensive investment period in 2023 and 2024 that saw the financial services group aggressively expand its footprint across the continent and beyond through a series of mergers and acquisitions.

With a market capitalisation of ₦1.28 trillion, Access Holdings is now focused on integrating its recent acquisitions and extracting value from the synergies created. This strategic pivot is intended to address concerns among some shareholders and analysts who, despite the bank’s significant expansion, have deemed its stock undervalued.

“In the last two years, the focus was on investment and involved entering several markets of business and mergers and acquisitions. The transaction lifestyle ranges from 18-30 months,” said Bolaji Agbede, Acting Group Chief Executive Officer, during a recent earnings call. “In 2025, we will be entering the consolidation phase, which will involve finalising inflight transactions and delivering value from the synergies in M&A to benefit all stakeholders.”

The consolidation efforts are expected to unlock value not only from newly integrated entities but also from existing operations, citing the example of Zambia, where the bank has significantly increased its capacity.

Access Bank, which commenced operations in 2002, has structured its business into three core categories: global financial centres, global trade hubs, and African markets. This structure underpins its expansion strategy.

To successfully navigate the consolidation phase and prepare for the subsequent optimisation stage starting in 2026, Access Holdings plans to prioritise investment in talent, technology, and compliance, Agbede noted. In 2024, the holding company demonstrated this commitment by investing a substantial $120.5 million in technology infrastructure and electronic business, a figure higher than the technology spend of competitors like Guaranty Trust Holding Company (GTCO) Plc, United Bank for Africa (UBA) Plc, and Zenith Bank Plc in 2023.

Efficient capital and liquidity management will also be a key focus during this phase. Furthermore, the group aims to leverage global opportunities across its operational regions. Access currently holds a presence in major global financial centres including London, New York, and Paris, with plans to add Hong Kong and Tokyo in the coming years. The bank is also active in key trade hubs such as London, Malta, Mauritius, and China, Access Bank Managing Director Roosevelt Ogbonna added.

The bank remains optimistic about the prospects for 2025, anticipating significant returns as pending acquisitions in markets like Kenya, Uganda, Mauritius, and Malta are finalised. The performance of digital banking subsidiaries, including Hydrogen, Oxygen X, Access Insurance, and Access Pension, is also expected to contribute significantly to this positive outlook.

“From 2026, our primary focus will be to optimise our installed capacity,” Agbede stated, signalling the group’s long-term vision for maximising the returns from its expanded network and integrated operations.