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Access Bank Botswana has proposed reducing its paid-up capital by P80 million as its parent company, Access Bank Nigeria PLC, moves to align its overseas shareholding with regulatory requirements in Nigeria.
The proposed capital reduction, announced to shareholders on 14 September 2026, will be implemented on a pro-rata basis and is aimed at returning surplus capital that the Botswana bank says is in excess of its immediate requirements.
According to the bank, Section 19(8)(c) of Nigeria’s Banks and Other Financial Institutions Act, 2020 limits a Nigerian bank’s aggregate shareholding in foreign subsidiaries to less than 10% of its shareholder’s funds. The Access Bank Botswana board said it has determined that the bank currently holds capital above its immediate requirements, making the return of the surplus capital in the best interests of the company.
The P80 million reduction represents approximately 11% of Access Bank Botswana’s current paid-up capital, although the transaction will not involve any reduction in the number of issued shares.
The bank currently has 725 million issued shares, and this figure will remain unchanged following the proposed capital reduction. The controlling interest and public float will also remain unchanged.
The move therefore represents a reduction in the amount of paid-up capital attached to the existing shareholding rather than a cancellation or restructuring of shares.
Access Bank Botswana said the proposal is intended to enable its parent company to comply with the applicable Nigerian regulatory requirement while ensuring that the Botswana subsidiary continues to meet all applicable regulatory requirements in Botswana.
The proposed reduction is not yet effective. Access Bank Botswana will first require the prior written approval of the Bank of Botswana, as well as shareholder approval through a Special Resolution at a General Meeting that will be convened at a later date.
The development comes as the bank seeks to optimise its capital position while maintaining its existing ownership structure. Since the number of issued shares, controlling interest and public float will remain unchanged, the proposed transaction is not expected to alter the bank's shareholder structure.