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Guaranty Trust Holding Company Plc (GTCO) has made a huge capital injection of ₦365.85 billion into its main subsidiary, Guaranty Trust Bank Limited (GTBank), in order to meet the Central Bank of Nigeria’s (CBN) new capital requirement for banks that operate with international licence.
The announcement was made on Friday through a regulatory filing signed by the Company Secretary, Mr. Erhi Obebeduo. The capital injection was carried out through a rights issue which involved issuing almost 7 billion ordinary shares of GTBank to GTCO.
With this move, the share capital of GTBank has risen sharply from ₦138.186 billion to ₦504.037 billion, crossing the CBN’s minimum capital benchmark of ₦500 billion for commercial banks with international authorisation. “Through this capital injection, the share capital of GTBank has been increased from ₦138.186 billion to ₦504.037 billion and ensures the bank’s compliance with the new minimum capital requirement for commercial banks with international authorisation stipulated by the Central Bank of Nigeria,” the filing stated.
This capital raise comes at a time when banks in Nigeria are under pressure to comply with the CBN’s recapitalisation directive announced in March 2024. The directive requires all commercial banks to boost their capital base before March 2026. The move is seen as a way to strengthen the financial system against economic shocks, following the sharp fall in the naira and rising inflation which have increased risks in the banking sector.
GTBank now joins other tier-1 banks such as Access Bank and Zenith Bank in meeting the new capital requirement ahead of the 2026 deadline. This strengthens GTBank’s position as one of the top lenders in the country and secures its international banking licence. It also places the bank in a stronger position for strategic growth and expansion both within Nigeria and in other countries where it operates.
According to GTCO, the additional funds will be used to grow GTBank’s operations and improve services. The bank plans to expand its branch network across Nigeria and other markets, increase its loan book and investment portfolio, and strengthen its information technology systems to better serve customers. “The additional equity capital will be deployed by GTBank primarily for branch network expansion and asset growth (loans/advances and investment securities portfolio), fortification of its information technology infrastructure, and to leverage emerging opportunities in Nigeria and the operating environments where it maintains banking presence,” the statement said.
The recapitalisation plan had earlier been approved by shareholders during GTCO’s 2024 Annual General Meeting and was carried out in two phases with full approval from regulators. Following the allotment, GTCO still retains 100 per cent ownership of GTBank, showing that the holding company has no intention of diluting its control of the bank.
The recapitalisation push by the CBN is now one of the most important policies in Nigeria’s financial sector. The aim is to create stronger banks that can support economic growth and withstand both local and global financial challenges. In July, the CBN Governor, Mr. Olayemi Cardoso, disclosed that at least eight banks had already met the new capital requirement. Other banks that are yet to meet the target are now exploring mergers, acquisitions, and fresh capital raises to remain competitive.
For customers, analysts say the recapitalisation of GTBank means greater stability and stronger service delivery. The bank is also expected to use the funds to innovate more in digital banking, strengthen its technology base, and improve products and services for individuals and businesses.
The banking sector remains one of the most active in Nigeria’s economy, and the recapitalisation drive is expected to reshape the industry over the next two years. With GTBank, Access Bank, and Zenith Bank already crossing the threshold, the competition among lenders will now focus on who can expand faster and deliver better services while maintaining profitability.
