Access Holdings may exit foreign market to meet CBN’s 10% investment limit

Access Holdings, the parent company of Access Bank, is looking to sell at least one foreign subsidiary. This move comes as the company aims to comply with a Nigerian banking law that limits how much money banks can invest in overseas operations.

Chairman Aigboje Aig-Imoukhuede announced that Access Holdings has pinpointed a foreign business that it may need to sell due to regulations that make it hard to retain. However, he did not specify which business or country is involved, and no sale has been finalised yet.

Currently, Access Bank’s investments in subsidiaries amount to ₦446.6 billion as of September 30, 2026, which is about 19.29% of its shareholders’ funds. This is nearly double the 10% limit set by the Central Bank of Nigeria (CBN).

According to the Banks and Other Financial Institutions Act (BOFIA) of 2020, Nigerian banks cannot invest more than 10% of their shareholders’ funds in foreign subsidiaries without the CBN’s approval for a different limit. While this law does not prohibit banks from operating internationally, it restricts how much capital they can allocate to those ventures.

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To align with these regulations, Access Holdings will need to reduce its qualifying foreign investments. This does not mean it will cease all overseas operations or exit the markets where it is currently present.

Access Holdings plans capital withdrawals and stake sales

Access Bank is exploring options to sell off some of its foreign investments as part of a broader strategy to comply with regulations before a March 2027 deadline.

During its earnings call on November 5, the company announced plans to bring back excess capital from its subsidiaries in seven countries, mainly across Africa, along with one in its international sector. Additionally, Access is looking to sell minority stakes in its subsidiaries across five countries, while retaining at least 80% ownership in each. Recently, in July 2026, the company completed the sale of a 7.44% stake in Access Bank Ghana.

To better manage its foreign investments, Access is also restructuring its operations by creating a global subsidiary and an intermediate holding company. These changes aim to keep investment exposure within the limits set by the Central Bank of Nigeria (CBN) without losing control of most of its overseas banking operations.

However, the potential sale of an entire foreign business would mark a more significant step than merely selling minority stakes, possibly leading to Access withdrawing from certain markets as it evaluates which operations to keep to meet capital requirements.

This regulatory challenge has implications for shareholders as well. Access has put its proposed dividend for the full year of 2025 on hold until it meets the foreign investment limit. The company stated that dividend payments will depend on compliance with the regulations and on receiving necessary approvals.

As of now, Access has not specified which foreign business it might sell or how much that sale could help reduce its investment exposure. The company has until March 2027 to align with the law.

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