Nigeria’s banking and financial services sector recorded a busy third quarter of 2026, marked by major financing transactions, capital deployment, institutional restructuring and significant regulatory changes. Nigerian banks and financial institutions played increasingly visible roles in funding energy and infrastructure projects, supporting businesses and financial technology companies, while the insurance and pension sectors continued to undergo consolidation and recapitalisation.
The quarter also saw notable shifts in the regulatory and monetary environment, including the Central Bank of Nigeria’s 350-basis-point reduction in the Monetary Policy Rate to 23%, changes to liquidity and money-market operations, and further regulatory interventions across banking, fintech and insurance. This report reviews the key transactions, financing activity, regulatory developments and advisory mandates that shaped Nigeria’s banking and financial services landscape between July and September 2026.
1 First HoldCo Commences ₦1.4 Trillion Share Sale
First HoldCo Plc, the parent company of First Bank of Nigeria and one of the country’s oldest and most systemically important financial institutions, commenced a landmark ₦1.4 trillion (approximately $1 billion) share sale in early August 2026 following regulatory approval from the Central Bank of Nigeria (CBN).
The transaction involves the secondary sale of approximately 10.4 billion ordinary shares—representing roughly 23–25% of the group’s issued share capital—previously held by RC Investment Management Ltd. RC Investment had acted as a bridge shareholder after acquiring the stake from Barbican Capital Ltd. in 2025 amid a prolonged ownership and boardroom restructuring. The shares were warehoused pending regulatory clearances, after which they were to be offered to the broader investing public.
The offer opened on 3 August 2026 and was priced at ₦110 per share in the formal term sheet, equating to an approximate transaction value of
₦1.15 trillion. At the time of launch, First HoldCo shares were trading near record levels on the Nigerian Exchange (NGX), with the offer price representing a meaningful discount to prevailing market prices (which had reached as high as ₦145).
The deal ranks among the largest equity block transactions in the Nigerian market in recent years and serves as a key test of institutional and retail appetite for banking assets in the post-recapitalisation environment. It also coincides with continued stake-building by Chairman Femi Otedola-linked entities, further reshaping the group’s shareholder structure.
2. Femi Otedola Increases First HoldCo Stake Through Further Share Purchases, Reaches $1bn Valuation
First HoldCo Plc Chairman Femi Otedola significantly increased his ownership of the group in Q3 2026 through a series of open-market purchases via Calvados Global Services Limited. Between late July and August, the vehicle acquired approximately 2.87 billion shares at a total cost of around ₦351 billion.
The largest single transaction was the purchase of 1.779 billion shares on 30 July for about ₦222.2 billion at ₦124.90 each. Additional blocks followed in August. These acquisitions lifted Otedola’s combined direct and indirect stake from roughly 20.4% at the end of June to the 26–27% range by early September.
At the prices prevailing around the major July purchases, the enlarged holding crossed the $1 billion valuation threshold (approximately ₦1.47 trillion). Subsequent gains in First HoldCo’s share price, which reached successive record highs above ₦150, pushed the market value of his position higher still in the weeks that followed.
The sustained buying forms part of Otedola’s longer-term accumulation strategy and reinforces his position as the largest individual shareholder, with publicly stated ambitions to increase his interest further.
3 Access Bank redeems US$500 million Eurobond
Access Bank Plc, the flagship subsidiary of Access Holdings, fully redeemed its US$500 million senior unsecured Eurobond on 21 September 2026 at maturity. The five-year instrument, issued in September 2021 with a coupon of 6.125%, was repaid entirely from the bank’s own foreign-currency liquidity resources.
Access Bank had met all semi-annual coupon payments throughout the tenor. The redemption was incorporated into its asset-liability and liquidity management framework and had no adverse impact on operations or regulatory liquidity requirements. The repayment discharges the bank’s obligations under the bond and removes the US$500 million principal from its outstanding international debt.
4 Nigeria’s Insurance Recapitalisation Exercise Reaches Completion
The National Insurance Commission (NAICOM) formally concluded the insurance industry recapitalisation exercise on 31 July 2026, in line with the provisions of the Nigerian Insurance Industry Reform Act (NIIRA) 2025. The process mobilised approximately ₦1.079 trillion in capital across the sector.
Forty-eight insurance companies and two reinsurers successfully met the revised minimum capital requirements and were subsequently relicensed. Six operators that failed to satisfy the prescribed thresholds had their licences cancelled, with liquidators appointed to manage the wind-down of their operations. Capital held in escrow accounts with the Central Bank of Nigeria was earmarked for release to compliant institutions by the end of September 2026.
The completed exercise represents a significant strengthening of the sector’s capital base, enhancing underwriting capacity, claims-paying ability and overall financial resilience within Nigeria’s insurance market.
5 Access Bank consolidates Kenyan operations under National Bank of Kenya
Access Bank has moved to consolidate its Kenyan banking operations by transferring the business, assets and liabilities of Access Bank (Kenya) Plc into National Bank of Kenya Limited (NBK). The Central Bank of Kenya approved the transfer on 17 August 2026, with further clearance from the National Treasury on 21 September. The transaction becomes effective once the parties complete the Business and Assets Transfer Agreement.
Both entities are already wholly owned by Access Bank Plc of Nigeria. Access Bank entered Kenya in 2020 through the acquisition of Transnational Bank (later rebranded Access Bank Kenya). It subsequently acquired 100% of NBK from KCB Group in May 2025. The two banks had continued to operate under separate licences pending integration.
The transfer places all Kenyan operations under the NBK licence, with NBK as the surviving entity. The move simplifies Access Bank’s structure in the market, eliminates dual banking licences under common ownership, and supports greater scale and operational efficiency in East Africa.
6 Premium Pension and Trustfund Pensions Propose Merger
Premium Pension Limited and Trustfund Pensions Limited have proposed a merger that would create Nigeria’s third-largest Pension Fund Administrator (PFA), subject to regulatory approvals. The Federal Competition and Consumer Protection Commission (FCCPC) published the merger notification in early July 2026.
The combined entity is to operate as Premium Trustfund Pensions Limited. Under the proposed scheme of merger pursuant to Section 711 of the Companies and Allied Matters Act (CAMA) 2020, all assets, liabilities and undertakings of Premium Pension will be transferred to Trustfund Pensions, after which Premium Pension will be dissolved without being wound up.
The two firms currently rank as the fifth and sixth largest PFAs respectively. The enlarged platform is projected to manage approximately ₦3 trillion in assets under management. Both operators were licensed by the National Pension Commission (PenCom) in 2005 and manage Retirement Savings Account funds across multiple categories, including micro-pension and Shari’ah-compliant products.
The transaction forms part of broader industry consolidation ahead of PenCom’s elevated minimum capital requirements, which take full effect by mid-2027.
7 Nigeria’s Insurance Recapitalisation Exercise Reaches Completion
The National Insurance Commission (NAICOM) formally concluded the insurance industry recapitalisation exercise on 31 July 2026, in line with the provisions of the Nigerian Insurance Industry Reform Act (NIIRA) 2025. The process mobilised approximately ₦1.079 trillion in capital across the sector.
Forty-eight insurance companies and two reinsurers successfully met the revised minimum capital requirements and were subsequently relicensed. Six operators that failed to satisfy the prescribed thresholds had their licences cancelled, with liquidators appointed to manage the wind-down of their operations. Capital held in escrow accounts with the Central Bank of Nigeria was earmarked for release to compliant institutions by the end of September 2026.
The completed exercise represents a significant strengthening of the sector’s capital base, enhancing underwriting capacity, claims-paying ability and overall financial resilience within Nigeria’s insurance market.
8 FCMB Asset Management closes ₦20.69 billion private debt fund
FCMB Asset Management and TLG Capital closed the second series of the FCMB-TLG Private Debt Fund at approximately ₦20.69 billion, above its
₦20 billion target. Pension fund administrators accounted for approximately 78% of the commitments. The transaction is significant because it expands the pool of institutional local-currency private credit available to Nigerian businesses, particularly mid-sized companies.
FCMB Capital Markets acted as lead issuing house, with Coronation Merchant Bank and Stanbic IBTC Capital as joint issuing houses. Aluko & Oyebode served as solicitors, CardinalStone Registrars as registrar and ARM Trustees as trustee, while FCMB Asset Management managed the fund alongside TLG Capital as technical partner.
9 S&P Global agrees to acquire majority stake in Agusto & Co.
S&P Global announced on 28 July 2026 that it has agreed to acquire a majority stake in Agusto & Company Limited, a leading Pan-African credit rating agency with operations in Nigeria, Kenya, Rwanda and Ghana.
The transaction combines S&P Global Ratings’ international expertise with Agusto & Co.’s local market knowledge to strengthen presence in Africa’s domestic credit markets. Following completion, Agusto & Co. will continue to operate as a separate ratings entity, issuing its own credit ratings and methodologies in accordance with applicable regulatory requirements.
10 Zedcrest acquires Leatherback
Zedcrest Group completed the acquisition of Leatherback, a UK-founded cross-border payments fintech, in late July 2026. The deal formalises a relationship that began when Zedcrest led Leatherback’s $10 million pre-seed funding round in 2022.
Leatherback will continue to operate as an independent subsidiary within the Zedcrest Group, retaining its brand and existing leadership team. The acquisition provides the fintech with additional institutional capital, governance support and capacity to expand its payments infrastructure and geographic reach.
11 Keystone Bank Proposes Sale of Majority Stake in KBL Insurance
Keystone Bank Limited has proposed the sale of its 66.54% controlling stake in KBL Insurance Limited to Bethel V Limited, an investment vehicle established by insurance and investment professionals.
The transaction, notified to the Federal Competition and Consumer Protection Commission in September 2026, would result in a change of control of the general insurer. The parties have negotiated a Share Purchase Agreement, with completion subject to the required regulatory clearances.
KBL Insurance, a NAICOM-licensed general insurance company and current subsidiary of Keystone Bank, successfully completed the recent industry recapitalisation exercise. Financial terms of the proposed sale have not been disclosed.
12 Nomba secures US$3 million CardinalStone facility
Nomba, the African digital payments company, secured a US$3 million debt facility through CardinalStone Finance Company Limited in early September 2026.
The facility provides additional US dollar liquidity to expand Nomba’s cross-border payments infrastructure from its Democratic Republic of Congo operations, supporting faster settlement of trade between Central Africa and Asian markets via banking relationships in Hong Kong and Singapore.
13 Nigerian banks join US$3 billion Shell contractor finance programme
Shell Nigeria Exploration and Production Company (SNEPCo) launched a US$3 billion Contract Finance Facility in early July 2026 in partnership with nine Nigerian banks to improve access to credit for indigenous oil and gas contractors executing projects for SNEPCo.
The participating banks are First Bank, Guaranty Trust Bank, Zenith Bank, Access Bank, United Bank for Africa, Stanbic IBTC, Standard Chartered Bank, First City Monument Bank and Fidelity Bank. The facility is available in both naira and US dollars.
Under the arrangement, the banks provide capital while SNEPCo contributes contracts and payment domiciliation to reduce lending risk. The initiative aligns with the Nigerian Oil and Gas Industry Content Development Act and is intended to strengthen local contractor capacity and in-country value retention.
14 Nigerian banks finance US$1 billion-plus Ima Gas development
TotalEnergies EP Nigeria and AMNI International Petroleum Development Company took Final Investment Decision on the Ima Gas Development Project in September 2026. The shallow-water offshore field, straddling OMLs 112 and 117 near Bonny Island, has an estimated development cost of approximately US$1.1 billion.
A consortium of seven banks is providing the project financing, with Nigerian institutions accounting for more than 70% of the funding. The participating banks include Zenith Bank, Access Bank, United Bank for Africa, Guaranty Trust Bank, Standard Bank, Standard Chartered Bank and First Abu Dhabi Bank.
The project is designed to produce about 350 million standard cubic feet of gas per day at plateau and will supply roughly one-third of the feedstock required for Nigeria LNG’s Train 7. First gas is targeted for the end of 2028. The development is expected to generate between US$2 billion and US$4 billion in lifetime value for Nigeria. Standard Chartered Bank acted as financial adviser, global coordinator, lead arranger and bookrunner on the financing, while Banwo & Ighodalo, Parsons and CMS advised the sponsors on Nigerian, international and DIFC legal matters, respectively. G. Elias and White & Case LLP acted as Nigerian and international legal counsel to the lenders, respectively.
15 InfraCredit secures US$50 million IFC subordinated facility
Infrastructure Credit Guarantee Company Plc (InfraCredit) secured a US$50 million subordinated unsecured 10-year debt facility from the International Finance Corporation (IFC) in late September / early October 2026.
The facility will be disbursed in two equal tranches of US$25 million and is intended to strengthen InfraCredit’s capital base, expanding its capacity to mobilise long-term local-currency financing for infrastructure projects. Target sectors include renewable energy, climate-smart agriculture, digital infrastructure, telecommunications, healthcare and transportation.
The IFC investment is supported by the International Development Association Private Sector Window Blended Finance Facility and the Concessional Capital Window.
16 Bank of Industry raises ₦274.19bn in debut domestic bond issuance
The Bank of Industry (BOI), Nigeria’s development finance institution, raised
₦274.19 billion through its debut naira-denominated bond issuance, exceeding its initial ₦250 billion target following strong demand from institutional investors. The five-year fixed-rate bond was issued through BOI Financing SPV Plc under the bank’s US$1 billion multi-currency instruments programme.
BOI intends to use the proceeds to expand its financing activities across priority sectors, including manufacturing, agribusiness and other productive businesses. The transaction gives the bank an additional source of domestic-currency funding alongside its existing funding channels. The issuance was reported as the largest bond issuance by a Nigerian development finance institution. Aluko & Oyebode and Olaniwun Ajayi LP acted as legal advisers on the transaction. Chapel Hill Denham as lead issuing house.
17 CBN issues BOFIA stay-period interpretative guidance
The Central Bank of Nigeria issued interpretative guidance on 1 July 2026 clarifying the practical operation of Sections 34(2)(b) and 40(2) of the Banks and Other Financial Institutions Act, 2020.
The circular provides that any suspension of payment or delivery obligations, or of termination rights, imposed by the CBN Governor in relation to a failing or resolution-affected bank or financial institution shall not exceed two business days from the date the relevant written order or notice is issued.
The guidance takes immediate effect and was issued to address uncertainty that had arisen for banks, other financial institutions and counterparties to affected contracts. The two-business-day limit aligns with the Financial Stability Board’s Key Attributes of Effective Resolution Regimes.
18 CBN launches Regulatory Sandbox Cohort 2
The Central Bank of Nigeria opened applications for the second cohort of its Regulatory Sandbox Programme in August 2026. The application window ran from 12 to 31 August 2026.
Cohort 2 operates through two dedicated testing tracks. The Virtual Asset Service Provider (VASP) Track covers innovative solutions involving virtual assets, stablecoins, payments, settlement, custody, wallets and related financial infrastructure requiring supervised live testing. The Data-Enabled Financial Services (Non-VASP) Track focuses on innovations that leverage secure digital infrastructure and permission-based data sharing to improve financial inclusion, payments, credit, risk management, operational efficiency and consumer outcomes.
Eligible applicants include CBN-regulated institutions, Virtual Asset Service Providers, fintechs, technology companies and other qualifying entities. The programme provides a controlled environment for live testing under CBN supervision, supporting responsible innovation while informing the development of regulatory frameworks for Nigeria’s evolving digital financial ecosystem.
19 SEC expands fintech and digital-asset regulatory framework
The Securities and Exchange Commission issued its Proposed Rules on Digital and Virtual Asset Operations, Custody and Markets on 20 August 2026, following the Presidential Executive Order on Virtual Assets Coordination 2026.
The proposed rules expand the regulatory framework for digital and virtual asset activities that constitute investments and securities business in Nigeria. They introduce distinct categories for market participants, including Digital Asset Exchanges, Digital Asset Custodians, Digital Asset Platform Operators, Digital Asset Offering Platforms, Real-World Asset Tokenisation Platforms and Virtual Asset Service Providers, together with prescribed minimum capital and registration requirements.
The framework covers issuance and offering, tokenisation, trading, custody, transfer and settlement, and investment and advisory services. The proposals build on the Commission’s existing Accelerated Regulatory Incubation Programme and are intended to provide greater regulatory clarity while supporting responsible innovation in the capital market.
20 CBN revokes 46 microfinance-bank licences
The Central Bank of Nigeria revoked the operating licences of 46 microfinance banks with effect from 1 July 2026, pursuant to Sections 12 and 13 of the Banks and Other Financial Institutions Act, 2020.
The action was approved by the CBN Governor following the institutions’ failure to meet regulatory requirements for continued operation. Grounds for revocation included one or more of the following: insufficient assets to meet liabilities; closure of operations without CBN approval; inactivity and cessation of financial intermediation; failure to commence operations within
12 months of licence approval; and failure to maintain minimum capital funds unimpaired by losses.
The CBN stated that the measure forms part of its ongoing efforts to safeguard the stability of the financial system, protect depositors and maintain public confidence.
Q4 Outlook
The final quarter will show whether Nigeria’s financial institutions can turn the capital raised and transactions initiated in 2026 into measurable business growth. Banks face a changed monetary policy environment following the CBN’s reduction of the Monetary Policy Rate to 23%, although the effect on lending will depend on liquidity conditions and banks’ willingness to extend credit. Their year end results should provide a clearer picture of how the rate cut is affecting earnings and loan demand.
The proposed acquisitions in Q3 are expected to close in the final quarter. pension fund administrators must prepare for the next phase of capital requirements in 2027. Further consolidation is possible where operators conclude that raising capital independently is less attractive than combining businesses.
Financing conditions will determine how much of the sector’s announced investment reaches the wider economy. Infrastructure projects and businesses seeking expansion capital remain dependent on lenders willing to commit funds over longer periods.
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