Access Holdings Plc is considering exiting at least one of its foreign markets as it moves to comply with Central Bank of Nigeria (CBN) regulations limiting investments in overseas subsidiaries.
The group’s chairman, Aigboje Aig-Imoukhuede, disclosed that an underperforming subsidiary had been identified for possible disposal if it failed to meet its financial and strategic objectives.
The CBN rules limit Nigerian banks’ equity investments in foreign subsidiaries to 10 per cent of their shareholders’ funds. Access Bank’s exposure stood at 19.4 per cent in May, prompting the regulator to give the lender 12 months to meet the requirement.
Group Chief Executive Officer, Innocent Ike, said the bank was pursuing capital repatriation, disposal of minority stakes and restructuring of some operations to meet the regulatory threshold.
The group is targeting compliance ahead of the March deadline, while continuing to review its international operations for profitability and sustainable growth.
Sources: Nairametrics | Businessfront
