Access Holdings: N446.6bn subsidiary investment exceeds BOFIA limit, targets March 2027 compliance
AI Executive Briefing
Gemini Flash AI~45s readAccess Holdings Plc has acknowledged that its subsidiary investments exceed the 10% statutory limit mandated by the Banks and Other Financial Institutions Act (BOFIA). To rectify this, the group is executing a capital-recall and divestment strategy to reach compliance by March 2027.
Context & Background
- ✦Section 19(8)(c) of BOFIA limits bank investments in subsidiaries to 10% of shareholders' funds, a regulation that directly impacts the group's ability to distribute dividends.
- ✦The group is navigating complex regulatory requirements, including CBN financial holding company guidelines, while managing the integration costs of businesses acquired in 2025.
Key Figures & Named Entities
•Innocent Ike, Group Managing Director, emphasized the group's commitment to transparency regarding performance and regulatory progress.•Roosevelt Ogbonna, Access Bank Managing Director, confirmed that capital recalls are underway in seven markets to address the N215 billion reduction requirement.
Outlook & Next Steps
The group expects to complete three capital recalls in November 2026, two by the end of December 2026, and one in early 2027, with full compliance targeted for March 2027.
Key Takeaways
AI Summary- Access Holdings Plc's N446.6 billion investment in subsidiaries currently represents 19.29% of shareholders' funds, exceeding the 10% statutory limit set by BOFIA.
- The group must reduce its investment carrying value by approximately N215 billion to achieve regulatory compliance by the March 2027 deadline.
- Dividend payments remain contingent upon achieving full regulatory compliance, with management currently withholding guidance on payout ratios until the CBN clarifies its position.
Key Facts:September 2026: Access Holdings recorded a profit before tax of N667.36 billion for the nine months ended September 2026.July 2026: The group completed the sale of a 7.44% stake in Access Bank Ghana as part of its capital-recall programme.March 2027: Access Holdings is targeting this specific date to achieve full compliance with BOFIA investment limits.
Editorial Excerpt
By Peter Egwuatu Access Holdings Plc has disclosed that its N446.6 billion investment in subsidiaries, representing 19.29 per cent of shareholders’ funds, exceeds the 10 per cent statutory limit stipulated by the Banks and Other Financial Institutions Act (BOFIA), as it targets March 2027 to...
Frequently Asked Questions About This Story
Why is Access Holdings currently unable to pay dividends?
Dividend payments are currently restricted because the group has not yet met the 10% statutory limit for subsidiary investments prescribed under Section 19(8)(c) of BOFIA.
What steps is the group taking to meet the BOFIA compliance requirement?
The group is implementing a capital-recall programme across seven markets, pursuing minority stake sales in five countries, and restructuring its international operations.
