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By Chinwendu Obienyi and Chukwuma Umeorah
Abbey Bank Plc, formerly Abbey Mortgage Bank Plc, will begin full commercial banking operations in November 2026, expanding its services to retail customers, small and medium-sized enterprises (SMEs) and corporate clients following approval by the Central Bank of Nigeria (CBN) to operate as a regional commercial bank.
The transition will enable the bank to extend its activities beyond mortgage financing and real estate development to include trade finance, business lending and other financial services for individuals and companies.
Managing Director and Chief Executive Officer of Abbey Bank, Mobolaji Adewumi said preparations were ongoing to upgrade its technology infrastructure, strengthen operational capacity and expand its customer base ahead of the commencement of commercial banking operations. He recalled that discussions on the transition began in 2023, with a formal application submitted in 2024. Regulatory approval was granted in October 2024, while the commercial banking licence was issued in June 2026 after the bank completed its capital-raising process.
“The year 2026 represents a defining moment in the history of Abbey. Our approval to transition to commercial banking is a testament to the work invested in building this institution and the confidence placed in us by our regulators, shareholders, customers and employees,” Adewumi said.
He said the bank would build on its experience in mortgage banking and real estate finance while preparing to serve a wider range of financial needs. The transition builds on Abbey Bank’s more than three decades of experience in mortgage financing and real estate development, which management said would provide a foundation for financing businesses across the housing and infrastructure value chains.
Abbey Bank reported improved financial performance in 2025, with profit before tax (PAT) rising to N3.12 billion from N1.22 billion in 2024. The bank said the performance provided a foundation for its expansion into commercial banking.
Adewumi added, “As we prepare for the commencement of commercial banking operations, our focus remains on delivering a seamless transition, strengthening our capabilities and ensuring that our customers continue to experience the trust, service and commitment that define Abbey. Our next chapter is about creating more possibilities for the people and businesses we serve.”
As part of its preparations, Abbey Bank is upgrading its banking application, corporate banking platform and mobile banking services. Management said the bank was also preparing to migrate customers to an enhanced core banking platform and considering the integration of artificial intelligence into its digital services.
The bank currently holds a regional commercial banking licence, but disclosed that it was targeting a national banking licence within the next two to three years. The proposed expansion would require additional capital to support operations across a wider geographical area and enable the bank to undertake larger transactions. Management identified the capital market, including commercial papers and bonds, as potential sources of funding as its financing needs grow.
The bank seeks to compete in the commercial banking market through customer service, faster decision-making and a better understanding of clients’ businesses, while maintaining its focus on construction finance, infrastructure and other activities linked to housing delivery. It also said risk management, regulatory compliance and adequate capital would remain important as the bank expands into new business segments.
