- Greenwich Merchant Bank successfully raised =N=22.6 billion through a rights issue and private placement to meet the Central Bank of Nigeria’s =N=50 billion recapitalization requirement, positioning itself for strategic growth and regulatory compliance ahead of the 2026 deadline.
- The strengthened capital base enhances Greenwich’s ability to underwrite large-scale transactions, expand advisory and asset management services, and support key sectors like infrastructure and energy, reinforcing its role in Nigeria’s economic development.
- Backed by strong governance and investor confidence, Greenwich’s recapitalization reflects a commitment to long-term value creation, operational resilience, and a vision to be Nigeria’s most trusted merchant bank.
In Nigeria’s evolving financial landscape, one theme has become increasingly clear: the Central Bank of Nigeria (CBN) is determined to build a stronger, safer, and more resilient banking system.
Its recapitalization directive, requiring merchant banks to maintain a minimum of =N=50 billion in paid-up capital, is more than a compliance exercise.
It is a call to reposition the sector for stability, innovation, and long-term growth.
At Greenwich Merchant Bank, we view this as both a challenge and an opportunity. Our recent completion of the =N=50 billion capitalization threshold, following a successful =N=22.6 billion rights issue and private placement, is a statement of our intent to operate from a position of strength, resilience, and strategic relevance.
Capital Strength Is Confidence
In banking, capital is confidence. It provides the assurance that a financial institution can absorb shocks, underwrite risk, and finance large-scale opportunities without compromising liquidity.
For a merchant bank, where transactions often span infrastructure, energy, and corporate finance, capital adequacy defines the institution’s credibility and competitiveness.
This recapitalization gives Greenwich the balance sheet flexibility to take on more complex transactions, deepen our advisory and underwriting capacity, and expand our product offerings to institutional and corporate clients. It also signals confidence, from our investors, our board, and our stakeholders, in the long-term fundamentals of Nigeria’s economy.
We did not pursue this capital raise simply to meet a regulatory threshold. We saw it as a chance to reset, strengthen our base, and prepare for the future of banking in Africa’s largest economy.
Aligning with Regulation and Market Reality
The CBN’s recapitalization policy reflects sound macroeconomic reasoning. A well-capitalized banking system is the backbone of economic stability. It ensures that financial institutions remain solvent in the face of currency adjustments, inflationary pressures, and rising credit risk.
For Greenwich, compliance was not about box-ticking; it was about alignment. We engaged transparently with regulators, investors, and shareholders to ensure the capital structure supports sustainable growth, not short-term optics.
This proactive approach also positions us advantageously as the 2026 compliance deadline approaches. As some institutions begin their recapitalization processes, Greenwich already operates from a position of regulatory comfort and strategic agility.
Expanding the Role of Merchant Banking
The recapitalization allows us to broaden the spectrum of services we provide to Nigeria’s productive sectors. Merchant banks play a distinct role in economic development, bridging capital and opportunity.
With a stronger equity base, we are now better positioned to underwrite larger structured and project finance transactions, particularly in critical sectors such as infrastructure, power, and industrial development.
This strengthened capital foundation also enables us to expand our asset and wealth management capabilities, catering more effectively to institutional investors and high-net-worth clients. In addition, it allows us to enhance our treasury and trade solutions, supporting corporate clients in navigating liquidity, foreign exchange, and risk management challenges.
These are not abstract goals; they are tangible ways in which stronger capital translates into more capacity to support real economic growth.
Governance and Long-Term Value Creation
While capital provides the resources, governance provides the discipline. Greenwich’s recapitalization is built on strong governance principles that ensure every naira of new capital is strategically deployed for value creation.
Our Board, led by Mr. Kayode Falowo, has maintained rigorous oversight and accountability, ensuring that our decisions align with global best practices. This governance framework has earned us trust in the market and a recent credit rating upgrade to ‘A-’ by Agusto & Co., reflecting our improved risk profile and liquidity strength.
We recognize that sustainable banking requires more than regulatory compliance; it demands integrity, transparency, and a long-term view of value.
A Sector Poised for Transformation
Nigeria’s recapitalization era presents an inflection point for the entire banking sector. Institutions that act early, build governance depth, and maintain strategic clarity will emerge stronger, more competitive, and more attractive to investors.
Merchant banks, in particular, have an opportunity to redefine their relevance, moving beyond traditional advisory roles into infrastructure finance, capital markets innovation, and investment solutions that power the real economy.
At Greenwich, we are embracing that future. Our vision is clear: to be the most trusted merchant bank in Nigeria, admired for our expertise, our integrity, and our contribution to national development.
Capital with Purpose
Ultimately, our =N=50 billion capitalization is not just a financial milestone; it is a commitment to purpose. It reflects our belief that capital should serve as a catalyst, enabling businesses to grow, markets to deepen, and communities to thrive.
We are confident that the path we have chosen, one rooted in prudence, partnership, and performance, will enable us to deliver sustained value to all our stakeholders while supporting Nigeria’s broader growth ambitions.
Strong capital is not an end in itself. It is a means to build stronger institutions, inspire confidence, and create real economic impact.
That is the future Greenwich Merchant Bank is building — one that goes beyond compliance, toward contribution and competitiveness.
- Benson Ogundeji is the Managing Director and Chief Executive Officer of Greenwich Merchant Bank.