Greenwich Merchant Bank’s N50bn Recapitalisation: A Milestone of Strength and Stability in Nigeria’s Banking Sector

Bennett Oghifo

In a move that underscores growing resilience within Nigeria’s financial system, Greenwich Merchant Bank has successfully met the Central Bank of Nigeria’s (CBN) N50 billion minimum capital requirement for merchant banks, following a well-executed recapitalization drive that strengthens its balance sheet and positions it for accelerated growth.

The development – confirmed in a CBN letter dated September 22, 2025 – marks a significant milestone in the institution’s evolution from a legacy investment firm into one of Nigeria’s most respected and forward-looking merchant banks.

From Greenwich Trust to a Modern Merchant Bank

Founded in 1992 as Greenwich Trust Limited, the institution established its reputation through excellence in capital market advisory, securities issuance, and investment services. Over the years, it became synonymous with financial integrity, executional precision, and long-term client partnerships.

In 2020, the company transitioned into a full-fledged merchant bank, a transformation that reflected both strategic ambition and the growing sophistication of Nigeria’s banking landscape. Today, Greenwich Merchant Bank operates across five core verticals – corporate banking, investment banking, treasury & global markets, asset and wealth management and securities trading serving corporates, institutions, and high-net-worth clients.

“Our journey has always been guided by a commitment to prudent growth, sound governance, and client trust,” said Mr. Kayode Falowo, Chairman of the Board. “This recapitalization represents not just compliance with regulatory expectations but a renewal of our confidence in the Nigerian economy and the opportunities ahead. We are building an institution designed for resilience, relevance, and impact.”

The Capital Raise: Strength, Stability, and Investor Confidence

Greenwich’s =N=50 billion capitalization was achieved through a Rights issue and private placement that collectively raised =N=22.6 billion in fresh equity, taking the bank above the CBN’s prescribed minimum. The approval cements its position as one of Nigeria’s strongest and best-capitalized merchant banks.

Beyond meeting regulatory requirements, the recapitalization reinforces strong investor confidence, enhances liquidity buffers, and expands the bank’s capacity for large-ticket transactions across energy, infrastructure, and manufacturing sectors.

“We see this capital raise as a strategic enabler,” noted Mr. Benson Ogundeji, Managing Director and Chief Executive Officer. “It allows us to take a bigger role in financing Nigeria’s productive sectors – from infrastructure and manufacturing to energy and technology – while providing innovative solutions that create measurable value for our clients.”

The move aligns perfectly with the CBN’s renewed recapitalization directive, designed to fortify banks’ capital adequacy and strengthen the entire financial ecosystem. For Greenwich, it is both a strategic leap and a statement of intent – an affirmation of its capacity to compete, lead, and deliver in an evolving economy.

Unlocking New Revenue Streams and Client Solutions

The strengthened capital position opens fresh opportunities for Greenwich to diversify its earnings and deliver comprehensive financial solutions to clients. With the enhanced capacity, the bank is now positioned to underwrite and lead larger, more complex structured and project finance deals across key sectors such as infrastructure, power, and industrial development. It is also expanding its wealth and asset management offerings, with a broader product suite designed for institutional and private clients, aimed at achieving deeper market penetration and increasing assets under management. In addition, Greenwich’s fortified balance sheet enables it to provide bespoke corporate advisory, risk management, and liquidity solutions, further reinforcing its position as a one-stop merchant banking partner.

“Our clients remain at the center of our strategy,” Ogundeji added. “We’re investing in stronger digital infrastructure and product innovation to ensure speed, sophistication, and value in every transaction.”

This capital flexibility will enable Greenwich to pursue more fee-based, non-interest income opportunities – critical in a sector where diversification and efficiency drive profitability.

Governance, Leadership, and Institutional Vision

Under the leadership of Chairman Kayode Falowo and CEO Benson Ogundeji, Greenwich Merchant Bank has demonstrated a consistent blend of strategic foresight and governance discipline.

The Board, composed of seasoned professionals across banking, finance, and industry, provides the right mix of expertise and oversight. This governance culture – anchored in transparency and accountability – continues to differentiate Greenwich in a competitive financial landscape.

“Good governance is the foundation of institutional longevity,” Falowo emphasized. “Our Board remains steadfast in upholding integrity, accountability, and transparency – the pillars that have sustained Greenwich for more than three decades.”

The management team is executing a refreshed three-year strategic roadmap, focused on optimizing the bank’s balance sheet, enhancing operational efficiency, and scaling its product portfolio through innovation and digital transformation.

A Vote of Confidence from the Market

Even before the recapitalization, Greenwich had earned positive market confidence, with Agusto & Co. recently upgrading the bank’s credit rating to ‘A-’ in recognition of its solid liquidity profile, sound risk management, and growing capitalization. Analysts view this upgrade as a strong endorsement of Greenwich’s stability and investor appeal, reinforcing market optimism around its recapitalization drive. Beyond signaling confidence, the improved rating also lowers the bank’s cost of funds and enhances its capacity to attract institutional investors, structure large-ticket financings, and play a more active role in Nigeria’s fixed income and capital markets.

Industry observers note that Greenwich’s move sets a benchmark for other mid-tier banks seeking to strengthen capital buffers and expand lending capacity. It also reflects a broader trend of proactive recapitalization ahead of the CBN’s 2026 deadline.

Broader Impact on Nigeria’s Banking Sector

The implications of Greenwich’s =N=50 billion recapitalization extend beyond its balance sheet. For Nigeria’s banking sector, it reinforces the message that local institutions can rise to meet tougher prudential standards while remaining profitable and innovative.

By enhancing its capital base, Greenwich has positioned itself to play a larger role in funding Nigeria’s economic diversification agenda – from infrastructure to sustainable industries. This development also strengthens confidence among depositors, investors, and regulators in the soundness of the financial system.

Furthermore, the move demonstrates how indigenous banks can adopt forward-thinking strategies that balance capital strength with customer-centric growth, setting a new standard for governance and sustainability in merchant banking.

The Road Ahead: Sustaining Growth and Value

As Greenwich transitions into its next phase, execution will be key. The bank’s leadership is focused on efficient capital deployment, disciplined risk management, and generating strong risk-adjusted returns for shareholders.

The refreshed capital structure provides the foundation for a more agile, scalable, and future-ready institution – one capable of competing effectively within Nigeria’s dynamic financial services space and expanding its reach across the continent. “Our ambition is simple,” Ogundeji concluded. “To be the most trusted merchant bank in Nigeria – admired for our expertise, our integrity, and our ability to help clients achieve their goals.”

Greenwich Merchant Bank’s N50 billion recapitalization is far more than a regulatory exercise – it is a declaration of purpose and a reaffirmation of strength. It represents a blend of heritage and innovation; of discipline and vision.

As Nigeria’s financial system evolves to meet the demands of a complex global economy, Greenwich stands as a model of what modern merchant banking should represent resilience, relevance, and responsibility.