Quest Merchant Bank Clears N50bn Capital Hurdle, Signals Strong Comeback After First HoldCo Exit
- Quest Merchant Bank meets N50 billion capital requirement, marking a significant milestone after ownership change
- Bank aims to support key Nigerian sectors with increased capital for large-scale projects and infrastructure development
- Management emphasizes commitment to sustainable growth and responsible expansion in response to CBN's new regulations
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Quest Merchant Bank Limited has successfully met the N50 billion minimum capital requirement set by the Central Bank of Nigeria (CBN) for merchant banks, marking a major milestone in the bank’s transformation after its exit from First HoldCo.
The achievement positions the financial institution among merchant banks that have scaled the regulatory hurdle as the apex bank pushes a sweeping recapitalisation drive across Nigeria’s banking sector.
Source: Twitter
The CBN introduced the directive to strengthen the financial system, boost banks’ lending capacity and ensure institutions are well-capitalised to support economic growth.
By meeting the requirement, Quest Merchant Bank has reinforced its readiness to finance large-scale projects across key sectors of the economy.
A turning point after the ownership change
The milestone is particularly significant for the bank, which was previously owned by First HoldCo before its divestment and transition into a new ownership structure.
According to the bank’s management, the successful recapitalisation reflects investor confidence in the institution’s long-term strategy and governance framework.
Acting Managing Director and Chief Executive Officer of Quest Merchant Bank, Afolabi Olorode, described the achievement as a defining moment in the bank’s journey.
He noted that hitting the N50 billion threshold demonstrates the strength of the bank’s strategic direction and the trust placed in it by investors.
“This milestone marks a significant step forward for Quest Merchant Bank,” Olorode said.
“Meeting the N50 billion capital requirement underscores investors’ confidence in our strategy and reflects the strength of our governance and franchise.”
Positioning for larger transactions
With a stronger capital base, the bank says it is now better positioned to pursue the next phase of its growth strategy, a Punch report says.
Management disclosed that the fresh capital will enable Quest Merchant Bank to underwrite larger transactions and deepen its presence in areas such as capital markets, advisory services and structured finance.
The strengthened balance sheet is also expected to expand the bank’s ability to support businesses seeking financing for major projects and expansion plans.
Industry analysts say merchant banks play a critical role in arranging complex financial deals, providing corporate advisory services and supporting large infrastructure projects.
With more capital available, Quest Merchant Bank could significantly increase its participation in such transactions.
Focus on key economic sectors
ThisDay reported that Olorode emphasised that the bank intends to channel its strengthened financial capacity toward supporting critical sectors of the Nigerian economy.
These sectors include infrastructure development, energy projects, manufacturing and corporate expansion initiatives.
“With this strengthened capital position, we are equipped to play an even greater role in financing key sectors of the Nigerian economy,” he said.
He added that the bank will continue to prioritise helping private enterprises grow while delivering long-term value to clients.
“Our focus remains clear. We will continue to help our clients succeed while serving as a trusted long-term partner in delivering sustainable growth.”
Commitment to sustainable growth
The recapitalisation success is seen as a major step in Quest Merchant Bank’s effort to reposition itself following its ownership transition.
Management says the bank will continue to pursue responsible expansion while strengthening innovation and strategic financial solutions for businesses and institutions.
Source: Twitter
As Nigeria’s banking industry adjusts to stricter capital requirements from the CBN, Quest Merchant Bank’s achievement signals renewed confidence from investors and highlights the institution’s ambition to play a bigger role in driving economic development.
First Bank's parent company completes sale of bank
Legit.ng earlier reported First HoldCo Plc has completed the divestment of its merchant banking subsidiary, FBNQuest Merchant Bank Limited, selling its entire stake to EverQuest Group.
The parent company of First Bank of Nigeria said the transaction is part of a strategic plan to optimise capital allocation, improve capital efficiency and support growth in its core commercial banking operations.
EverQuest Acquisition LLP, which emerged as the preferred bidder after a competitive selection process, is a consortium of investment and financial services firms.
Source: Legit.ng
