Oyo state government is set to invest N691.3 million in Wema Bank

The Oyo state government said it will invest the sum of N691.3 million in Wema Bank.

This was confirmed in a statement on Thursday after the Oyo State Executive Council met.

The Council met on Tuesday, April 23 and approved five projects including investing in Wema Bank.

READ ALSO: CBN gives banks two years to meet N500b new capital base

“The sum of N691,307,039.86 will be invested in Wema Bank rights issuance programme as part of plans to secure the future of Oyo State,” the statement read.

The Central Bank of Nigeria (CBN) recently gave new directives to commercial banks for re-capitalization.

The CBN said all international banks should move their capital to a minimum of N500 billion and national banks up to a minimum of N200 billion.

The Apex Bank directed all regional banks to increase their capital to N50 billion, merchant banks (N50 billion) and N20 billion for non-interest banks operating nationally and N10 billion for those operating regionally.

To achieve this, the banks are expected to adopt one or a combination of three options.

One of the options is to inject fresh equity capital through private placement, rights issue and/or offer for subscription.

The other option for the banks is to go into mergers and acquisitions.

They could also upgrade or downgrade their license of authorisation (meaning downgrade from international bank to national or regional or reverse).

You must be logged in to post a comment.

Why are you flagging this comment?

I disagree with this user

Targeted harassment - posted harassing comments or discussions targeting me, or encouraged others to do so

Spam - posted spam comments or discussions

Inappropriate profile - profile contains inappropriate images or text

Threatening content - posted directly threatening content

Private information - posted someone else''s personally identifiable information

Before flagging, please keep in mind that Disqus does not moderate communities. Your username will be shown to the moderator, so you should only flag this comment for one of the reasons listed above.

We will review and take appropriate action.

Get the latest news delivered straight to your inbox every day of the week. Stay informed with the Guardians leading coverage of Nigerian and world news, business, technology and sports.

Follow Us