CBN Disqualifies 41.65 Million Shares in Access Holdings Rights Issue

The Central Bank of Nigeria (CBN) has disqualified 41.65 million shares from Access Holdings’ recent rights issue, citing non-compliance with regulatory guidelines. The decision has sparked discussions in financial circles about its implications for the bank and its investors.

Access Holdings, the parent company of Access Bank, had embarked on the rights issue to raise capital for expansion and strengthen its financial position. However, the disqualified shares were deemed ineligible due to procedural lapses and failure to meet specific regulatory requirements outlined by the CBN.

In a statement, the CBN emphasized its commitment to ensuring transparency and adherence to regulations in capital-raising activities. “The disqualification reflects our obligation to uphold the integrity of the financial markets and protect stakeholders,” the bank said.

Access Holdings assured stakeholders that the issue would not derail its capital-raising objectives. The company reiterated its commitment to compliance and pledged to work with regulators to resolve outstanding concerns. “We remain focused on our growth strategy and will address all regulatory observations promptly,” the company stated.

Market analysts suggest that while the disqualification may cause temporary setbacks, Access Holdings’ overall capital-raising initiative remains on track. However, the incident highlights the importance of stringent regulatory adherence in the banking sector.

The development also serves as a reminder for financial institutions to prioritize compliance in structuring and executing capital market transactions, ensuring alignment with regulatory expectations to avoid disruptions. As Access Holdings navigates this challenge, stakeholders will be watching closely for updates on how the company adjusts its strategy to achieve its capital goals.