Sterling Bank seeks shareholders nod for $400 million raise

Sterling Bank Plc, a mid-tier Nigerian lender with a market capitalisation of ₦174.76 billion, will seek shareholders’ approval to raise $400 million (₦619 billion), as it rushes to meet a looming regulatory deadline for a significant capital increase.

The bank plans to establish a shelf program that will allow it to issue a variety of financial instruments, including bonds, preference shares, and ordinary shares, in either the local or international markets. The fundraising, which will be formally presented at its Annual General Meeting next month, is a direct response to the Central Bank of Nigeria’s (CBN) mandate requiring lenders to bolster their capital reserves by March 2026.

Sterling Bank is the latest in a wave of Nigerian financial institutions, from industry giants like GTCO Holdings and Stanbic IBTC Holdings, to seek fresh capital in 2025. Previously, it had raised ₦103.8 billion from its private placement and rights issue. This industry-wide scramble comes as the CBN wishes to fortify the nation’s banking sector. Under the new rules, banks with international operations must increase their capital base to ₦500 billion. National and regional banks are required to hold ₦200 billion and ₦50 billion, respectively.

While the move is crucial for Sterling Bank’s future growth and regulatory compliance, the timeline is tight. The March 2026 deadline set by the CBN has created a sense of urgency across the industry, compelling banks to strategise and execute their capital-raising plans swiftly to avoid any potential regulatory sanctions. The success of these capital-raising efforts will be a key determinant of the competitive landscape of Nigeria’s banking sector in the coming years.

*This is a developing story

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