Expanding Beyond Borders: A Calculated Strategy
One of Access Bank’s most notable moves has been its diversification through international expansion. This isn’t mere adventurism. Rather, it is a carefully measured strategy, guided by thorough assessments of the economic prospects in foreign markets. The bank’s calculated presence in multiple countries reflects a broader vision: to mitigate domestic volatility by spreading risk and opportunity across more stable or emerging economies.
Such strategic foresight deserves recognition, especially in a time when many banks are still struggling to recalibrate after shocks to the Nigerian economy.
When Social Commentary Oversteps Its Bounds
Before diving into the details of Access Bank’s recent N194 billion commercial paper issuance, it's necessary to pause and reflect on the broader issue of public commentary in the age of social media. As Ralph Waldo Emerson aptly put it, “It ain’t the things you don’t know that cause the problem; it’s the things you think you know that ain’t so.”
The democratisation of discourse, fueled by digital platforms, has inadvertently empowered a wave of uninformed commentary. In every discipline—from medicine and law to economics—armchair analysts now question subject-matter experts, often with a louder voice than those grounded in experience. Nigeria is not immune to this trend.
Figures such as Wole Soyinka, Bishop Kukah, or Burna Boy are revered in their respective fields of literature, theology, and music—but their opinions on complex economic matters are often taken with the same weight as those of seasoned economists. This muddling of expertise becomes dangerous when the stakes are high—as they are with Access Bank’s financial strategy.
The Critics of Access Bank: Misinformed or Malicious?
When Access Bank announced its intent to raise N194 billion via commercial papers, the backlash came swiftly—often from three predictable quarters: the uninformed, the misinformed, and the malicious. Among the latter are competitors seeking to de-market the bank under the guise of public concern.
To offer a more informed perspective, I consulted with my nephew—an economist with the World Bank Group in Asia—who helped me arrange consultations with credible voices in international finance. What emerged was a picture far different from the hysteria circulating online.
A Move for the Elite, Not the Masses
Let’s be honest: this offer is not designed for the average Nigerian. With a minimum investment threshold of N5 million, it clearly targets high-net-worth individuals and institutional investors. For these investors, the offer is not viewed in isolation but as one piece in a larger investment mosaic.
This is not a public policy issue—it’s a private financial opportunity. And yet, it holds relevance for the broader public because of what it signals about Access Bank’s broader strategy and the state of the financial sector.
Why Not Just Increase Deposits or Seek Interbank Loans?
Critics have questioned why Access Bank would choose to issue commercial papers instead of exploring supposedly easier options like deposit drives or interbank loans. But such views ignore the economic realities on ground.
Interbank rates are currently hovering around 30% per annum—an unsustainable option for any bank, especially in a climate where liquidity is tight and operational costs are surging. Additionally, efforts by both the Central Bank of Nigeria and individual banks to mobilise deposits have largely fallen flat.
Why? The answer lies in trust—or the lack of it.
The Fallout from the 2022/23 Currency Crisis
The CBN’s mismanagement of the 2022/23 currency redesign eroded one of the foundational pillars of banking: depositor trust. Banks, for the first time in recent memory, were unable to fulfill basic obligations. People were brutalised while trying to access their own money. A few died waiting in queues. The message was clear: your money is not safe in the bank.
This breach of trust created fertile ground for Point-of-Sale (POS) operators, who quickly filled the vacuum. Today, millions—especially those in the informal sector—prefer POS channels over traditional banking. Our firm’s recent consultancy work reveals a continuous upward trend in POS usage since early 2024, even among illicit actors seeking untraceable liquidity.
The deposit base has shrunk—and it’s not recovering any time soon. Under these circumstances, a commercial paper issuance represents the least costly and most efficient means of raising capital.
A Tactical Masterstroke
Access Bank’s move was not spontaneous. The subscription period—March 20-25, 2025—was a legal formality. The bank had already secured its core investors before the public announcement. This was not a plea for funds—it was a strategic step in a much larger play.
And let’s be clear: Nigeria cannot afford to lose a single bank right now. Every financial institution must be kept afloat, not out of sentiment, but out of systemic necessity.
Final Thoughts
Access Bank’s issuance of N194 billion in commercial papers isn’t just a financial maneuver—it’s a statement of intent, a demonstration of confidence, and a calculated response to the challenges of the moment.
To those still debating the wisdom of this move, consider the words of Walter Lippmann: “It requires wisdom to understand wisdom; the music is nothing if the audience is deaf.”
Access Bank has played a smart tune. It’s time we learn to listen.