Lagos, Nigeria – August 29, 2025 – Guaranty Trust Holding Company Plc (GTCO) has announced a significant capital injection of N365.85 billion into its flagship subsidiary, Guaranty Trust Bank Limited (GTBank), to comply with the Central Bank of Nigeria’s (CBN) new minimum capital requirements for commercial banks with international authorization. The transaction, disclosed in a regulatory filing with the Nigerian Exchange Limited (NGX) and the London Stock Exchange (LSE) on Friday, August 29, 2025, was executed through a rights issue involving the issuance of 6,994,050,290 ordinary shares of 50 kobo each, fully subscribed by GTCO.
This strategic move has increased GTBank’s paid-up share capital from N138.19 billion to N504.04 billion, surpassing the CBN’s mandated minimum of N500 billion for banks with international licenses. The capital raise ensures GTBank’s compliance with the CBN’s recapitalization directive, announced in March 2024, which requires commercial banks to bolster their capital bases by March 31, 2026, to enhance resilience against economic challenges such as naira devaluation and inflationary pressures.
Strategic Expansion and Innovation
GTCO stated that the additional equity will be deployed to fuel GTBank’s growth initiatives, including expanding its branch network across Nigeria and other markets, increasing its loan book and investment portfolio, and strengthening its information technology infrastructure. The funds will also enable GTBank to capitalize on emerging opportunities in Nigeria and its international markets, which include Ghana, Kenya, and the United Kingdom.
Segun Agbaje, Group Chief Executive Officer of GTCO, emphasized the significance of the recapitalization, stating, “The successful recapitalization of our flagship banking subsidiary, Guaranty Trust Bank Limited, marks a pivotal step in strengthening the foundation of our Group. With significant new capital secured and the CBN’s recapitalization directive for Guaranty Trust Bank now fulfilled, we are focused on deepening innovation and service excellence, delivering improved performance, and expanding our footprint across high-growth markets, while upholding the industry-leading standards that define the GTCO brand.”
A Milestone in Nigeria’s Banking Sector
The capital injection comes on the heels of GTCO’s historic listing on the London Stock Exchange in July 2024, making it the first West African financial institution to dual-list on both the NGX and LSE. The listing, coupled with a public offering in Nigeria that raised N209.41 billion and an international offering that secured $105 million, reflects strong investor confidence in GTCO’s financial discipline and growth strategy.
GTBank now joins other tier-1 lenders, such as Access Bank and Zenith Bank, in meeting the CBN’s N500 billion capital threshold ahead of the 2026 deadline. According to CBN Governor Olayemi Cardoso, at least ten banks, including GTBank, have already complied with the new requirements as of August 2025, while smaller lenders explore mergers and acquisitions to meet the mandate.
Positioning for Growth
The recapitalization is expected to enhance GTBank’s competitive edge in Nigeria’s evolving financial landscape. Analysts suggest that the strengthened capital base will enable GTBank to increase lending capacity for critical sectors such as infrastructure, energy, and small and medium enterprises (SMEs), supporting Nigeria’s broader economic recovery efforts. Additionally, the investment in technology infrastructure is anticipated to drive innovation in digital banking, improving service delivery for customers.
GTCO retains 100% ownership of GTBank following the rights issue, with no directors holding direct or indirect interests in the bank, ensuring transparency in the transaction. The capital raise, funded through GTCO’s two-phased equity program approved at its 2024 Annual General Meeting, underscores the group’s commitment to maintaining its position as one of Nigeria’s most profitable and resilient financial institutions.
Industry Context
The CBN’s recapitalization directive is a response to economic challenges that have eroded banks’ capital buffers, including currency devaluation and persistent inflation. This initiative echoes the 2004 recapitalization under then-CBN Governor Charles Soludo, which reduced the number of Nigerian banks from 89 to 25 through mergers and acquisitions, creating today’s robust tier-1 institutions. With the current deadline approaching, industry watchers anticipate further consolidation, particularly among smaller banks struggling to meet the new capital requirements.
GTCO’s proactive approach positions GTBank not only for regulatory compliance but also for strategic expansion across its pan-African and international operations. As Nigeria’s banking sector continues to evolve, GTBank’s strengthened capital base signals its readiness to remain a dominant player in the industry.
Sources: Nairametrics, The Guardian Nigeria, TechCabal, TheCable, Business Post Nigeria, Tekedia, Naija247news, Investing.com, Hallmark News, Radarr Africa, New Telegraph, Daily Nigerian, Legit.ng, Premium Times, Vanguard News, Punch Newspapers, The Eagle Online, Starconnect Media