FCMB’s ₦160bn Capital Drive Signals Confidence In Nigeria’s Economy

First City Monument Bank (FCMB) Group Plc has reaffirmed its commitment to strengthening Nigeria’s financial landscape with a bold ₦160 billion public offer, unveiled before capital market operators, investors, and regulators at the Nigerian Exchange Group (NGX) on October 13, 2025.

The move marks a crucial phase in FCMB’s recapitalisation plan aimed at meeting the Central Bank of Nigeria’s ₦500 billion minimum capital requirement for international banks while reinforcing the Group’s balance sheet, sustaining its licence, and enhancing shareholder value.

Group Chief Executive, Ladi Balogun, presented the offer’s details during the “Facts Behind the Offer” session, positioning the initiative as a strategic step to build a stronger, more resilient financial institution.

He traced FCMB’s long-standing relationship with the NGX, noting that the bank has raised about $863 million through the exchange since inception, with recent rounds predominantly funded by domestic investors, reflecting growing local confidence in the financial system.

Balogun tied the capital raise to Nigeria’s improving economic fundamentals, pointing to a 10-year high in foreign reserves, inflation easing toward 20%, and a strengthening naira as indicators of renewed macroeconomic stability.

He expressed optimism that sustained monetary reforms, lower interest rates, and Nigeria’s likely re-entry into global emerging market indices would stimulate increased foreign portfolio inflows and higher valuations across the banking sector.

In his remarks, NGX CEO Jude Chiemeka lauded FCMB’s transparency and engagement with investors, describing the financial sector as “the engine of Nigeria’s market activity,” contributing over 75% of daily trading volume and ₦2.2 trillion in taxes in the past four years.

He noted that the NGX facilitated ₦4.6 trillion in capital raising across asset classes in the first half of 2025 alone and urged FCMB to deepen collaboration on investor education and corporate governance through the NGX X-Academy.

Highlighting FCMB’s strong half-year performance, Balogun reported a 23% rise in profit before tax and a 20.6% return on equity, crediting strategic restructuring efforts.

He explained that high cash reserve requirements have driven up the cost of funds, making equity infusion vital for reducing expensive deposits and improving margins.

Following FCMB’s 2024 capital raise, the bank’s net interest margin climbed to 9.1%, with returns on equity reaching the 20% range — a trend he expects to continue when the new funds are deployed in early 2026.

Balogun also underscored a major economic turning point=Nigeria’s GDP growth finally outpacing population growth, a prerequisite for poverty reduction.

“For sustainable poverty alleviation, Nigeria needs at least 7% annual GDP growth, and the current CBN-led reforms are helping achieve that trajectory,” he said.

He praised the Central Bank’s decisive actions, including exchange rate unification and clearing a $7 billion forex backlog, both of which have bolstered reserves and investor trust.

Urging shareholders to participate fully in the offer, Balogun advised them to “maintain or increase their holdings to avoid dilution,” expressing confidence in the long-term profitability of Nigeria’s banking sector.

With FCMB’s stock appreciating by 395% since 2020, representing a 70% compound annual growth rate, and its price-to-book ratio still relatively low, the Group’s ₦160 billion capital raise stands as both a signal of institutional strength and a bold endorsement of Nigeria’s economic resurgence.