Wema Bank, partly owned by gambling magnate Adebutu, wins nod for $100 million capital raise

Wema Bank, partly owned by Nigerian gambling magnate Kessington Adebutu, said it has completed a N150 billion ($100 million) rights issue that received approvals from both the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC). 

The capital raise, which opened on April 14 and closed on May 21, was part of the lender’s plan to meet the CBN’s recapitalization directive for commercial banks. With the approvals, Wema has now surpassed the N200 billion ($132.6 million) minimum capital requirement set for banks with national licenses. 

Alongside the rights issue, the bank also concluded a N50 billion ($33.2 million) private placement, which is awaiting regulatory review. Once cleared, this will lift the bank’s capital even further above the threshold.

CEO says early compliance shows shareholder confidence

Wema Bank Chief Executive Officer Moruf Oseni said the bank was proud to have crossed the regulatory line well before the 2026 deadline. 

“As a growth-driven bank, we welcomed the recapitalization requirement and embraced it with confidence,” Oseni said. “Meeting the $132.6 million benchmark ahead of schedule reinforces our financial strength and reflects the trust our shareholders have placed in us. We do not take that trust for granted.” 

He added that the stronger capital base provides the bank with “a solid platform to support customers, deliver value to shareholders, and contribute to the resilience of Nigeria’s financial system.”

Long history, digital pivot

Founded more than 80 years ago, Wema has modernized its operations through its ALAT digital banking platform, which has gained popularity with younger customers. Adebutu controls a 28.26 percent stake in the bank through his company Neemtree, while his daughter, Abolanle Matel-Okoh, owns 4.54 percent.

The latest capital raise highlights continued investor confidence in Wema’s governance and long-term strategy. The bank said its successful rights issue, which closed with subscriptions of N157 billion ($103.1 million), underscores its ability to attract support in a competitive financial market. With its recapitalization drive on track, Wema Bank is positioning itself for growth while reassuring regulators and investors of its long-term stability.