Access Bank May Shut Down Operations in Another Country Amid CBN’s New Rule
- Access Holdings is considering selling a foreign subsidiary as its overseas investments exceed the CBN’s 10% limit
- The group plans to withdraw capital and sell minority stakes while keeping control of most foreign businesses
- Access Holdings has put its 2025 dividend on hold pending regulatory compliance and approvals
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Access Holdings Plc, the parent company of Access Bank, is considering selling one of its foreign subsidiaries as it moves to comply with a Central Bank of Nigeria (CBN) regulation restricting Nigerian banks’ investments in overseas operations.
The development could see one of Nigeria’s largest banking groups withdraw from an international market, although the affected country has yet to be disclosed.
Source: Facebook
Access Holdings Chairman, Aigboje Aig-Imoukhuede, confirmed that the group had identified a foreign business it might need to sell because of regulatory constraints.
However, no final decision has been announced, and the proposed transaction remains under consideration.
CBN’s 10% rule puts Access under pressure
The potential exit follows concerns over Access Bank’s exposure to foreign subsidiaries, which currently exceeds the regulatory threshold.
As of September 30, 2026, the bank’s investments in subsidiaries stood at ₦446.6 billion, representing approximately 19.29% of shareholders’ funds.
This is nearly twice the 10% ceiling prescribed under Nigeria’s banking regulations.
The Banks and Other Financial Institutions Act (BOFIA) 2020 restricts banks from investing more than 10% of shareholders’ funds in foreign subsidiaries unless the CBN approves a higher limit.
Although the provision does not prohibit international expansion, it requires banks to maintain investment exposure within approved thresholds.
Access Holdings must therefore reduce its exposure or secure the necessary regulatory approvals before the March 2027 compliance deadline.
Access Bank plans foreign stake sales
Rather than immediately abandoning its international expansion strategy, Access Holdings is considering several measures to reduce its overseas investment exposure.
During its November 5 earnings call, the group disclosed plans to withdraw excess capital from subsidiaries operating in seven countries, predominantly across Africa, and another international operation.
It is also considering selling minority stakes in subsidiaries across five countries while retaining at least 80% ownership in each business.
The strategy would allow Access to release capital without surrendering control of most of its foreign operations, according to a report by Bloomberg.
In July 2026, the banking group completed the sale of a 7.44% stake in Access Bank Ghana, demonstrating its willingness to reduce ownership in selected markets.
Foreign restructuring could reshape operations
Access Holdings is also restructuring its international operations through the creation of a global subsidiary and an intermediate holding company.
The arrangement is intended to improve oversight and capital management while bringing foreign investments within regulatory limits.
However, selling an entire subsidiary would represent a more significant shift than disposing of minority stakes.
Such a transaction could end Access Bank’s direct presence in the affected market, depending on the eventual agreement.
Shareholders face dividend uncertainty
The regulatory challenge is also affecting shareholders, with Access Holdings putting its proposed dividend for the 2025 financial year on hold.
The company indicated that dividend payments would depend on meeting the foreign investment requirements and obtaining necessary approvals.
Source: Facebook
For investors, the situation raises questions about how quickly the group can release capital, satisfy regulators and restore dividend payments.
Access Holdings has not disclosed the foreign subsidiary being considered for sale or the potential financial impact of the transaction.
With the March 2027 deadline approaching, the group faces a significant decision over which international investments to retain and which to relinquish.
Firm shuts down PoS operations in Nigeria
Legit.ng earlier reported that Nigeria’s challenging business environment has forced another major financial technology company to scale back operations, as payment services provider Onafriq announced the closure of its agent banking business, popularly known as Baxi.
The company cited rising operating costs, persistent inflation, naira depreciation and growing competition as major factors behind its decision to discontinue the business operated by Onafriq Nigeria Payments Limited.
Source: Legit.ng
