Shareholders of Abbey Mortgage Bank Plc have approved a resolution to raise up to N164.5 billion in fresh capital, marking a pivotal step in the lender’s transition from a mortgage institution to a regional commercial bank. The approvals were secured during the bank’s Annual General Meeting (AGM) held on Monday, May 25, 2026, where shareholders overwhelmingly endorsed a N64.5 billion private placement and authorised the board to raise an additional N100 billion through various equity and debt instruments, subject to regulatory approvals.
Speaking at the meeting, the Chairman of the Board, Mr. Samuel Oni, described the capital raise as a critical component of the bank’s strategy to secure a regional commercial banking licence, positioning the institution for its next phase of growth. He noted that the board and management are aggressively working towards securing the approvals required for the conversion, a move he characterised as a key strategic priority. Oni expressed confidence that significant progress would be achieved before the next annual general meeting, adding that he expects Abbey to be operating as a regional commercial bank by then.
Responding to shareholder questions, Oni confirmed that the bank is accelerating efforts to complete the ongoing capital raise and regulatory processes necessary for the conversion. He noted that documentation for the proposed private placement is nearing completion and only awaits final regulatory approvals. The chairman also defended the bank’s dividend policy, explaining that management is balancing shareholder rewards with the need to preserve capital ahead of the transition into commercial banking. This approach suggests the bank is prioritising capital retention and balance-sheet strengthening as it prepares for a more capital-intensive commercial banking model.
Also speaking at the AGM, the Managing Director and Chief Executive Officer, Mr. Mobolaji Adewumi, thanked shareholders for their continued support and reiterated management’s commitment to accelerating the bank’s transformation programme. According to him, the proposed capital raise will help strengthen working capital, support regulatory requirements, and provide the resources needed to complete the bank’s conversion plans. On dividends, Adewumi said the board remains committed to rewarding shareholders while simultaneously building sufficient buffers to absorb future risks. He noted that the bank doubled its dividend payout, reflecting a balanced approach to growth and shareholder value.
The development comes amid broader economic discussions, including CBN projects inflation trends, Lagos GIS mapping initiatives for urban planning, and the NDLEA loses bid in a high-profile legal case. Meanwhile, in a related development, breaking: World Bank says Nigeria’s economic recovery requires sustained policy reforms, and the AGF requests police to enforce compliance with financial regulations. These factors underscore the challenging yet opportunistic environment in which Abbey Mortgage Bank is executing its strategic shift.
