Let me gist you a story.
Last week, a friend called me:
“Guy, I want to back a Nigerian bank, but I don’t want to guess. How do I know which one makes sense?”
I told him what I’ll also tell you today, in this life, follow the money and the plan. Banks are not playing. They’re raising billions ahead of CBN’s recapitalisation deadline. Winners will grow stronger, laggards will sit on the bench. Timing matters.
And right now, ₦88 billion is on the table.
Sterling HoldCo (that’s the parent company of Sterling Bank, Alternative Bank, and SterlingFi) is selling 12.58 billion new shares at ₦7 each.
That’s fresh capital worth ₦88 billion. Minimum entry? ₦7,000 (that’s 1,000 shares). Offer closes today, 30th September 2025.
Now the big question is: should you put your money inside?
Why Sterling is raising this money
They actually have a plan for the funds. According to their pitch:
- ₦43bn to recapitalise Sterling Bank
- ₦10bn to grow SterlingFi (their fintech baby)
- ₦33bn for expansion things like their Cafe One lifestyle banking hubs and tech upgrades
And of course, they need to meet the CBN recap requirement.
So, it’s not just vibes. There’s a structure behind the raise.
How Sterling has been performing
Here’s where it gets interesting:
- 2024 gross earnings: ₦337bn (+52% YoY)
- H1 2025 profit before tax: ₦45.5bn (+163%)
- Return on equity: 25% (that’s industry-beating)
- Total assets: ₦4.1 trillion
Numbers don’t lie. This is not a struggling bank trying to survive. They’re already growing fast.
What about dividends?
This is where some people pause.
Sterling paid a dividend of ₦0.18/share in 2024 (around a 3.2% yield). Decent, but not “oya let’s shout hallelujah” money.
So, if you’re buying purely for juicy dividends, this is not your play, at least not yet.
But if profits keep doubling the way they’ve been doing, payouts could rise in the future. For now, this is more of a growth bet than a dividend play.
Let me tell you what caught my eye.
Sterling isn’t just building “typical” banks. They’re rolling out Cafe One hubs, a mix of coffee, coworking, networking, and banking in one space.
I checked out the one in Ogudu GRA, Lagos. Honestly, it felt like something you’d see abroad. People working, sipping coffee, meeting clients, while still having access to banking services.
If they scale this model nationwide, it could seriously change how young professionals interact with banks. It’s bold. And sometimes, bold pays.
The risk you must not ignore
Now, let’s balance the gist.
At ₦7/share, Sterling’s P/E ratio is around 43x. That’s expensive compared to peers. It means the market is already expecting plenty growth.
If Sterling delivers, investors will smile. If they stumble, you could lose value.
Add Nigeria’s macro wahala, inflation, FX risk, credit defaults, and you see that this is growth with risk, not a fixed-income play.
So please, don’t confuse this with treasury bills.
Should you invest?
Here’s my honest view:
- If you want steady dividends right now, look elsewhere.
- If you want growth exposure to a daring Nigerian bank innovating with tech and lifestyle, Sterling fits.
- But don’t carry all your money there. Cap it at 5–10% of your portfolio. That way, you enjoy the upside but protect yourself from the downside.
The bottom line
Sterling’s ₦88bn public offer is not free money. It’s a calculated bet on growth, innovation, and execution.
If they deliver, you’ll be glad you joined early. If they fumble, you’ll feel it.
But that’s the game of investing — balance risk with potential reward.
Offer closes today, 30th September 2025. Entry starts at ₦7,000. If it fits your strategy, this might just be your way of owning a slice of Nigeria’s financial future.
