The Central Bank of Nigeria (CBN) has granted approval for Abbey Mortgage Bank Plc to begin commercial banking operations in the country. This new license enables the lender to expand its activities beyond mortgage financing into full-scale commercial banking, covering retail, corporate, SME, and digital banking segments.
Abbey Mortgage Bank Receives Green Light for Full Commercial Operations
In a statement confirming the development, the bank described the regulatory approval as a historic milestone in its growth strategy and a testament to the regulator's confidence in its future roadmap. Abbey Mortgage Bank is now fully licensed by the CBN and complies with all required regulatory frameworks, including capital adequacy, governance standards, and risk management systems.
The transition plan includes upgrading infrastructure, technology, and corporate branding even before the new commercial banking license becomes fully operational. The bank will continue to leverage its expertise in mortgage and real estate financing while branching into digital services, SME financing, wealth management, and trade financing. Full commercial banking operations are expected to commence in the fourth quarter of 2026.
The statement reads: "Today marks a monumental milestone in our history, as we have received approval from the Central Bank of Nigeria to commence operation as a commercial bank. This is the culmination of years of growth, resilience, and the trust of our customers, shareholders, employees, and other stakeholders who have been part of our journey. This approval is the beginning of a new chapter, one that positions us to serve you with greater possibilities, broader access, and deeper impact. While the transition process begins now, full commercial banking operations are expected to commence in Q4 2026. Thank you for growing with us. The best is truly yet to come."
CBN Backs Abbey's Transition into a Full-Service Bank
The approval follows several months of strategic planning and steady performance, which the lender claims were key factors in receiving favorable consideration from the apex bank. Reacting to the development, Samuel Oni, Chairman of Abbey Mortgage Bank, disclosed that the approval marks a significant stage towards the bank achieving its regional commercial banking aspirations, as reported by The Sun. He said: "The capital raise is a critical component of the bank's strategy to secure a regional commercial banking licence and position the institution for its next phase of growth."
Paystack Microfinance Bank Begins Operations
In a related development, Nigerian fintech company Paystack has launched a new subsidiary called Paystack Microfinance Bank (MFB) following its acquisition of Ladder Microfinance Bank, coinciding with its 10th anniversary. The company, which started in Nigeria to simplify payments for businesses, has expanded over the past decade into a broader platform operating in five African countries.
