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Does Access Bank have enough capital for the Access/Diamond marriage?



Access Merger deal

Tier one lender, Access Bank Plc, will embark on a $250 million tier two capital raise sometime in the second half of next year, despite its claim to have enough capital for the Access/Diamond merger deal. Group Managing Director of the bank, Herbert Wigwe, disclosed this in a press briefing held yesterday.

Also present at the event were Diamond Bank  Managing Director Uzoma Dozie and Access Bank Deputy Managing Director, Roosevelt Ogbonna.


The move follows the announcement earlier this week of merger plans between both banks.

Here are excerpts from the event:

Lessons from the past 

The Access Bank GMD hinted at the possibility of a somewhat easier merger process, as the bank had gained valuable insight from its merger with Intercontinental Bank.

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“For us (Access Bank) we bring a very strong capability as far as mergers and acquisitions are concerned. It is not the first, second or third merger we have done. These transactions are extremely complex transactions and require a lot of institutional history and memory.”

He continues

“One of the benefits we have in this combination is that having done this several times before, we have learned from the mistakes of the past. Integrating Diamond is going to be a lot better than all the other ones we have done in the past. The latest one we did was the Intercontinental transaction, which was a large one and basically gave us all the learning points that we needed to bring to bear as far as this one is concerned.”

Access has enough capital for the deal

Herbert Wigwe also put to bed concerns that the bank did not have adequate capital for the transaction.

“Access Bank has enough capacity to consummate this merger without additional capital, but we have also taken new steps in line with international best practice, and the need to create a capital buffer that the new institution being created is one that will be robust not just in terms of size, but adequate capital to support it going into the future.”

More details on the capital raise

In response to a question from Babajide Komolafe on whether the bank would be raising capital, Wigwe gave more details.

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“We have concluded with some of our partners to raise tier two capital. That will be ready for drawdown before the end of January – about $250 million dollars.

“The issue of the rights issue which you saw in FT… $200 million additional which is N75 billion. We will soon be calling an Extraordinary General Meeting (EGM) for it to support our capital. That cannot happen now, but sometime next year before the end of the second half. The reason is to make sure that even though we have more than enough capital today, the emergent entity will have the strongest capital base to support an entity of that nature.


Wigwe also addressed the concerns of the public regarding a potential downsizing of Diamond staff.

“I think it is important I speak to the issue of staff, because it is a topical issue. First of all, it will be inappropriate to compare Diamond with Intercontinental. Intercontinental was a CBN intervened bank for two years, before they opened it up to a process. Diamond Bank is a going concern. Diamond Bank has a very active customer base. Diamond has some of the very best people in the industry.

“What we are seeing here is a combination of our talent pool which we are putting together to support this large enterprise. Within Access Bank, we have seen the need for some succession planning, even as we went on. What does this, is that it brings those people in.”

He went on 

“Secondly, the compelling proposition around this is Diamond Bank’s strong retail capability. The idea cannot be to ask people to start going, because once you do that the first thing you are going to do is to lose your customers.”

Wigwe stated that what was important was both institutions continuing to operate in a performance driven methodology. Diamond Bank CEO Uzoma Dozie also stated that himself and Wigwe were having engagements with staff.

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Shareholders are key 

Access Bank DMD, Roosevelt Ogbonna, gave an insight into projections from the enlarged entity, stating that shareholders would be key.

“We are doing this to create value. Ultimately when value is created, the main beneficiaries will be the shareholders. This transaction will be value accretive from the first year of legal merge.”

Nothing went wrong with Diamond

Herbert Wigwe also allayed fears that something went wrong with Diamond which led to the merger, stating that nothing went wrong.

“Internationally, mergers happen, if partners see that they can create a bigger pie.”

Uzoma Dozie also disclosed that the move was a voluntary one on the part Diamond Bank, stating:


“We chose our own destiny as Diamond Bank. We had a choice. Do we want to raise capital and go alone? Or do we want to look at a partnership? If you want to go fast, you can go alone, and we have gone very fast creating the fastest growing retail bank. But we want to also go very far as well. To go very far, you need to find a complimentary partner that will address and create value for all stakeholders. The two key stakeholders that are  important were our customers and our staff. If those two are okay, shareholders will be okay.

“In looking at our different options, we wanted one that would preserve value, one that would go beyond raising capital, but creating a bigger platform.”


Wigwe shed more light on the conundrum on if the transaction was a merger or an acquisition.

“This is a merger executed technically through a scheme of arrangement in respect of which one party is issuing shares for the other.”

Regulators are in the know

The Access Bank GMD also stated that notifications had been sent to all regulatory agencies.


“This thing broke on Sunday. We have since sent our notifications to all the regulatory agencies. The primary agency is the CBN, which has given us a ‘No Objection’ letter. We have notified SEC, PENCOM and the NSE.”

On Diamond Bank UK and PFC 

In response to questions by Nairametrics on Diamond Bank UK and its PFC, Dozie said that Diamond Bank UK is waiting for regulatory approval.

“All documents have been submitted. If the funds arrive before the legal merge, it will come to Diamond Bank and be merged with the final entity.”

PFC licence

On the Diamond Pension Fund Custodian, Wigwe stated that a strategic decision would be taken.

“We will take a strategic decision on if we will sell it or keep it.

Dividend payment 

Deputy GMD of Access Bank, Roosevelt Ogbonna, gave an assurance that the bank would maintain its dividend tradition.

“It is a commitment, which as management, we take fully into account. We realise we have different types of shareholders. There are some who the income is extremely important to, because that’s what they sustain themselves with. We are not going to be irresponsible. Post merger, we will still do as we have done up to date. We will pay dividends. We will continue to pay interim and full year dividends.”

Loan book

Wigwe concluded by addressing concerns about the loan book of Diamond Bank prior to the merger.

“We have enough capital such that after Diamond has written off its bad loans, the new and larger enterprise can continue. Because we are doing that tier two capital raise, we are even increasing and creating even much more capital cover. The new enterprise as large as it may be, will be adequately capitalised.


Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via [email protected]

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COVID-19 Update in Nigeria

On the 9th of July 2020, 499 new confirmed cases and 5 deaths were recorded in Nigeria.



The spread of novel Corona Virus Disease (COVID-19) in Nigeria continue to record significant increase as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 30,748 confirmed cases.

On the 9th of July 2020, 499 new confirmed cases and 5 deaths were recorded in Nigeria, having carried out a total daily test of 2,302 samples across the country.


To date, 30,748 cases have been confirmed, 12,546 cases have been discharged and 689 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 171,931 tests have been carried out as of July 9th, 2020 compared to 169,629 tests a day earlier.

COVID-19 Case Updates- 9th July 2020,

  • Total Number of Cases – 30,748
  • Total Number Discharged – 12,546
  • Total Deaths – 689
  • Total Tests Carried out – 171,931

According to the NCDC, the 499 new cases were reported from 24 states- Lagos (157); Edo (59); Ondo (56); Oyo (31); Akwa Ibom (22); Borno (21); Plateau (19); Kaduna (18); Katsina (18); Bayelsa (17); FCT (17); Delta (14); Kano (11); Rivers (10); Enugu (8); Ogun (6); Kwara (4); Imo (3); Nasarawa (2); Osun (2); Abia (1); Ekiti (1); Niger (1); Yobe (1).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 11,827, followed by Abuja (2,365), Oyo (1,604), Edo (1,562), Delta (1,337), Kano (1,302), Rivers (1,294), Ogun (1,063),  Kaduna (907), Katsina (646), Ondo (606), Borno (584), Gombe (524), Bauchi (519), Ebonyi (503), Plateau (497), Enugu (439), Abia (401),  Imo (359), Jigawa (318).

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Kwara state has recorded 311 cases, Bayelsa (299), Nasarawa (236), Osun (212), Sokoto (153), Akwa Ibom (134), Niger (125), Benue (121), Adamawa (100), Anambra (93), Kebbi (86), Zamfara (76), Yobe (62), Ekiti (46), Taraba (27), while Kogi and Cross River state have recorded 5 cases each.


READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

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Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020.

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READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

DateConfirmed caseNew casesTotal deathsNew deathsTotal recoveryActive casesCritical cases
July 9, 202030748499689512546175137
July 8, 2020302494606841512373171927
July 7, 2020297895036691512108170127
July 6, 202029286575654911828168047
July 5, 2020287115446451111665164017
July 4, 202028167603634611462160717
July 3, 2020275644546281211069158677
July 2, 2020271106266161310801156937
July 1, 2020264847906031310152157297
June 30, 202025694561590179746153587
June 29, 20202513356657389402151587
June 28, 20202486749056579007149957
June 27, 20202407777955848625148947
June 26, 20202329868455458253144917
June 25, 20202261459454977822142437
June 24, 20202202064954297613138657
June 23, 20202137145253387338135007
June 22, 20202091967552577109132857
June 21, 202020242436518126879128477
June 20, 202019808661506196718125847
June 19, 202019147667487126581120797
June 18, 20201848074547566307116987
June 17, 202017735587469145967112997
June 16, 202017148490455315623110707
June 15, 20201665857342445349108857
June 14, 202016085403420135220104457
June 13, 20201568250140785101101747
June 12, 20201518162739912489198917
June 11, 2020145546813875449496737
June 10, 20201387340938217435191407
June 9, 2020134646633654420688937
June 8, 2020128013153617404084007
June 7, 20201248626035412395981737
June 6, 2020122333893429382680657
June 5, 20201184432833310369678157
June 4, 2020115163503238353576467
June 3, 2020111663483151332975227
June 2, 20201081924131415323972667
June 1, 20201057841629912312271579
May 31, 20201016230728714300768687
May 30, 2020985555327312285667267
May 29, 202093023872612269763447
May 28, 202089151822595259260647
May 27, 202087333892545250159787
May 26, 2020834427624916238557107
May 25, 202080682292337231155247
May 24, 202078393132265226353607
May 23, 202075262652210217451317
May 22, 2020726124522110200750337
May 21, 2020701633921111190748987
May 20, 202066772842008184046377
May 19, 202064012261921173444757
May 18, 202061752161919164443407
May 17, 202059593881826159441837
May 16, 202056211761765147239737
May 15, 202054452881713132039544
May 14, 202051621931683118038154
May 13, 202049711841646107037374
May 12, 20204787146158695936704
May 11, 202046412421521090235894
May 10, 202043992481421777834794
May 9, 202041512391271174532784
May 8, 202039123861181067931154
May 7, 20203526381108460128184
May 6, 20203145195104553425071
May 5, 2020295014899548123704
May 4, 2020280224594641722912
May 3, 2020255817088240020702
May 2, 20202388220861735119522
May 1, 20202170238691035117512
April 30, 2020193220459731715562
April 29, 2020172819652730713692
April 28, 2020153219545425512322
April 27, 20201337644102559942
April 26, 20201273914152399942
April 25, 20201182873632229252
April 24, 202010951143312088552
April 23, 20209811083231977532
April 22, 2020873912931976482
April 21, 20207821172631975602
April 20, 2020665382311884662
April 19, 2020627862221704362
April 18, 2020541482021663562
April 17, 2020493511841593172
April 16, 2020442351311522772
April 15, 2020407341211282672
April 14, 202037330111992632
April 13, 202034320100912422
April 12, 20203235100852282
April 11, 202031813103702382
April 10, 20203051770582402
April 9, 20202881471512302
April 8, 20202742260442262
April 7, 20202541661442042
April 6, 2020238650351982
April 5, 20202321851331942
April 4, 2020214540251850
April 3, 20202092542251800
April 2, 20201841020201620
April 1, 2020174352091630
March 31, 202013982091280
March 30, 2020131202181210
March 29, 2020111221031070
March 28, 20208919103850
March 27, 2020705103660
March 26, 20206514102620
March 25, 2020517102480
March 24, 2020444102410
March 23, 20204010112370
March 22, 2020308002280
March 21, 20202210001210
March 20, 2020124001110
March 19, 20208000170
March 18, 20208500170
March 17, 20203100030
March 16, 20202000020
March 15, 20202000020
March 14, 20202000020
March 13, 20202000020
March 12, 20202000020
March 11, 20202000020
March 10, 20202000020
March 9, 20202100020
March 8, 20201000010
March 7, 20201000010
March 6, 20201000010
March 5, 20201000010
March 4, 20201000010
March 3, 20201000010
March 2, 20201000010
March 1, 20201000010
February 29, 20201000010
February 28, 20201100010

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Former Liberian President to sit on WHO review panel of COVID-19 response effort

Ellen Sirleaf has been picked alongside Helen Clark, to serve as co-chairs of the independent panel.



Former Liberian President to sit on WHO review panel of Covid-19 response effort

Following stern criticism by US President, Donald Trump, over their handling of the COVID-19 response efforts, the World Health Organization (WHO) has announced it will implement an independent panel to review said response efforts to the pandemic.

To this end, Liberia’s former President and West Africa’s first female President, Ellen Johnson Sirleaf, has been picked alongside former Prime Minister of New Zealand, Helen Clark, to serve as co-chairs of the independent panel. They will be responsible for selecting the other members of the panel, according to the WHO.


WHO’s Director-General, Tedros Adhanom, announced the panel will produce an interim report in a November meeting of global health ministers. Meanwhile, the substantive report would be produced by May 2021.

Tedros also said that the size of the pandemic calls for the need for a “commensurate evaluation, an honest evaluation”, adding that the WHO would be very serious with the preparation of the report.

READ MORE:COVID-19: WHO warns worst is yet to come as firm charges $2,340 for virus treatment

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The WHO members in May agreed to an independent review of the organization’s response to the pandemic. Ellen Johnson Sirleaf said the review of the body’s response would be challenging but looks forward to her role in doing what she can contribute to the response of the pandemic’s challenges.

The panel will also report monthly updates on the body’s response and will not only review the WHO’s response but also the International community’s response. Tedros added that it’s time for an honest reflection on the global response, saying a response will help with lessons on the pandemic.


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Economy & Politics

Presidency dismisses allegation of Osinbajo receiving N4 billion from recovered loots

The accusation was described to be an obvious campaign of lies and calumny.



Twitter deactivate Yemi Osinbajo's Twitter account, How Nigeria's LPG sector can create 2 million jobs -Osinbajo, budget support, NEC okays $250 million investment in NSIA , MSMEClinic gets 200,000 capacity yam storage facility in Benue, Accusations of Yemi Osinbajo receiving N4 Billion from recovered loots are baseless- Presidency

The office of the Vice President has reacted to a series of tweets accusing Professor Yemi Osinbajo of instructing the embattled acting Chairman of the EFCC, Ibrahim Magu, to release the sum of N4 billion out of N39 billion that was recovered from alleged looters. 

These allegations have been described as “false and baseless”. 


READ ALSO: UPDATE: President Buhari appoints Prof. Gambari as new Chief of Staff

A statement that was signed by the Senior Special Assistant to the Vice President on Media and Publicity, Laolu Akande, said, with all emphasis at our disposal, let it be firmly stated that these are totally false and baseless fabrications purposing to reflect goings-on at the probe panel investigating Mr Ibrahim Magu”. 

Ibrahim Magu was relieved of his duties this week, after a probe was conducted on his activities as Acting Chairman of the nation’s anti-graft agency. He has since been replaced with Mohammed Umar. 

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READ MORE: Just In: DSS invites EFCC’s Acting Chairman, Ibrahim Magu for questioning)

Meanwhile, the statement by the Presidency also complained about the recent rise in people being paid to “peddle blatant falsehoods” against the Vice President and says Mr Osinbajo “will not be distracted by these obvious campaigns of lies and calumny”. 

The statement added that the online publications “being criminally defamatory in nature”  have been referred to law enforcement agencies for investigation. 

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