Guaranty Trust Holding Company Plc (GTCO), one of Nigeria’s leading financial services groups, has injected ₦365.85 billion ($236 million) into its primary banking subsidiary, Guaranty Trust Bank Limited (GTBank). This significant capital injection was executed through a rights issue of nearly 7 billion ordinary shares to GTCO, as detailed in a recent regulatory filing.
The move is a strategic step by GTCO to ensure GTBank complies with the Central Bank of Nigeria’s (CBN) new capital requirements. The CBN has given commercial banks until March 2026 to strengthen their balance sheets. By raising its capital, GTBank will retain its international banking license, positioning it for future growth and expansion.
With this fresh capital, GTBank’s share capital has increased from ₦138.2 billion to ₦504 billion, comfortably exceeding the CBN’s new minimum requirement of ₦500 billion for banks with international authorization. This places GTBank among other Tier-1 lenders, like Access Bank and Zenith Bank, that have already met the new capital thresholds.
According to GTCO’s filing, the additional equity will be used to:
- Expand the branch network and grow its asset base, including loans, advances, and investment securities.
- Fortify its IT infrastructure to support digital banking initiatives.
- Leverage new opportunities in Nigeria and other markets where it has a banking presence.
The capital raising program, which was first approved at GTCO’s 2024 annual general meeting, was completed in two phases with full regulatory clearance. Following the allotment, GTCO continues to own 100% of GTBank.
The push for recapitalization has been a defining trend in Nigeria’s banking sector this year. In March 2024, the CBN issued a directive for banks to raise fresh equity. The goal is to “build a more resilient banking system” after the historic devaluation of the naira and inflationary pressures eroded banks’ capital buffers. Analysts have warned that any banks that fail to meet the new thresholds risk being acquired or losing their licenses.
As of July, CBN governor Olayemi Cardoso stated that at least eight banks have fully met the requirements. Others are scrambling to meet the March 2026 deadline, with smaller lenders exploring mergers to survive. For GTCO, this capital infusion strengthens one of Nigeria’s most profitable lenders, which has a pan-African presence in Ghana, Kenya, and the UK. The group is confident that a stronger capital base will allow it to compete for larger loans and expand its digital banking services across its markets.
