FCMB, Four Other Banks Looking to Raise N1tn Capital Before 2026 to Stay in Business

• Ahead of the CBN recapitalisation deadline, five Nigerian banks are looking to raise N1 trillion in capital
• Interviews with the managing directors showed that some would be doing a public rights offer, while a few would explore other options
• The CBN's new recapitalisation requirement mandates commercial banks with international authorisation to have N200 billion in share capital

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

As Nigerian banks start a second round of capital raising to meet the Central Bank of Nigeria (CBN) requirements, five commercial banks are targeting about N1 trillion before the 2026 deadline.

Last year, the CBN announced the bank recapitalisation to help banks build resilience to local and international shocks.

Banks with international authorisation have a threshold of N500 billion, while national and regional banks have respective thresholds of N200 billion and N50 billion. This is exclusive of all items except the share capital and share premium within the Shareholder Fund section of the balance sheet.

Read also

Nigerian bank shares over 20 million to 360 customers, plans to give out more

Wema Bank to raise N200 billion

After its N40 billion rights issue in 2023, Wema Bank would be looking to raise N200 fresh capital. The managing director Moruf Oseni disclosed recently that the indigenous bank would raise the sum from a special placement scheduled for April 1, 2025, and a rights issue.

Oseni expressed resounding confidence that the company would meet this goal given its reputation as Nigeria’s oldest indigenous bank, and a capable team driving its affairs, the PUNCH reports.

Stanbic IBTC Holdings helps its bank raise capital

Stanbic IBTC Holdings recently notified the NGX of its intentions to channel the proceeds of its N148.7 billion rights issue to Stanbic IBTC bank to help its banking subsidiary meet the threshold.

The bank’s current capital stands at about N109.26 billion, meaning that about N90.74 billion from the holding company is needed to meet the requirement.

Read also

Full list of staff salary at UBA, GTCO, Zenith, other banks for trainees, banking officer, more

FCMB to raise more capital

After a successful raise of N147.51bn in its 2024 public offer, FCMB group would be looking to raise additional funds, having secured shareholders' approval to increase paid-up capital from N150bn to N340bn.

This capital will be raised via a mandatory convertible loan offered to qualified investors, and later converted to ordinary shares based on agreed terms. The group also secured shareholders' nod to divest one or more subsidiaries and invest in the banking subsidiary to meet the requirements.

Fidelity Bank moves to raise more capital

Having already raised over N127 billion from the capital market in 2024, Fidelity Bank may also be returning for an additional N243.19 billion to meet the N500 billion threshold for international operators.

With the oversubscription recorded in the 2024 offer, there is an outstanding N243.19 billion required to make up the capital deficit of N370.29 billion.

Read also

NADF signs N5 billion deal with state govt for large-scale rice and maize production

Sterling Bank set to raise funds

Sterling Bank has also promised to do a public offer in 2025 to meet its capital requirement. The bank had raised N75 billion from private placement in 2024 and later announced intentions to allow more participation from Nigerians through a public offer.

The Managing Director/Chief Executive Officer of Arthur Stevens Asset Management Limited Mr. Olatunde Amolegbe, said in an interview that all capital raising exercises would likely be completed in 2025, way ahead of the March 2026 deadline.

This will be the case as no bank wants to rush to achieve in three months, what they had 24 months to do.

7 banks to raise N1.3 trillion

Earlier, Legit.ng reported about 7 banks ar looking for N1.3 trillion in the capital market ahead of the deadline.

Access Bank, GT Bank, Zenith Bank, and four others have already initiated the processes and will make announcements to the public soon.

Read also

Four banks' USSD code may no longer work as deadline to clear debt ends

Meanwhile, some smaller banks choose to leave the public offers and explore alternatives where they have better chances.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng