Royal Exchange Plc has secured shareholder approval at its Extraordinary General Meeting in Lagos to raise N2.7 billion through a Public Offer. The initiative is designed to bolster the company’s capital base, improve its competitiveness, and increase its capacity to pursue larger strategic business opportunities. Shareholders also authorized an increase in the company’s share capital and empowered the board to allot new ordinary shares as part of the recapitalization exercise. The firm will now proceed with regulatory requirements before launching the offering to the public.

Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has stated that the regulator will maintain heightened supervision of the banking sector despite the successful conclusion of the recent recapitalisation exercise.

Speaking at the BusinessDay 14th Annual CEO Forum, Cardoso noted that while the industry raised between N4 trillion and N5 trillion in fresh capital to build resilience against economic shocks, continuous oversight remains essential. He emphasized that the stronger capital base is intended to support eventual increased lending to the private sector once inflation and interest rates moderate. Cardoso also warned banks against indiscriminate lending, urging them to prioritize sophisticated risk management and proper analysis, especially when navigating complex sectors like oil and gas. The CBN plans to collaborate with financial institutions to enhance their internal risk assessment capabilities.