Fidelity Bank Crosses N500bn Capital Mark, Joins Access, Zenith, Others in CBN Recapitalisation Race
- Fidelity Bank successfully raised N250 billion to meet CBN's N500 billion capital requirement
- One-day private placement demonstrates strong investor confidence amid market volatility
- Analysts affirm Fidelity Bank's upgraded ratings, reinforcing its position among Nigeria's top lenders
Fidelity Bank Plc has joined the growing league of tier-1 lenders that have crossed the Central Bank of Nigeria’s N500 billion minimum capital requirement, following a highly successful private placement that raised between N250 billion and N270 billion.
Market sources with knowledge of the transaction said the placement was executed on December 31, 2025, and closed within the same day, reflecting strong investor appetite for the bank’s shares despite tight liquidity conditions in the broader market.
Source: Getty Images
One-day private placement stuns the market
With existing verified share capital and share premium of about N306 billion, the new equity injection lifted Fidelity Bank’s qualifying capital well above the N500 billion threshold required for banks with international authorisation.
Sources described the one-day private placement as unprecedented. Under Nigerian capital market rules, issuers are allowed up to 10 days to complete private placements, while public offers and rights issues can run for as long as six weeks, often with extensions.
Several recent bank recapitalisation offers had required deadline extensions due to market volatility.
Select institutional investors drive demand
According to market insiders, subscriptions to Fidelity Bank’s private placement were restricted to a carefully selected pool of investors whose profiles aligned with the bank’s long-term strategy, governance standards, and growth objectives.
The subscription pattern, similar to previous private placements by the bank, suggested strong participation from top-rated global institutional investors, reinforcing confidence in Fidelity Bank’s business fundamentals and long-term outlook.
Fidelity Bank joins tier-1 capital leaders
The successful capital raise places Fidelity Bank firmly among tier-1 lenders that have either met or are widely reported to have met the CBN’s new N500 billion capital requirement.
Other banks in this category include Access Holdings Plc, Zenith Bank Plc, First Bank of Nigeria Holdings Plc, United Bank for Africa Plc, and Guaranty Trust Holding Company Plc.
By completing the exercise nearly three months ahead of the March 31, 2026, recapitalisation deadline, Fidelity Bank has effectively reduced execution risk around its capital plan.
Regulatory clearance pending, confidence high
While the bank and its advisers are awaiting final regulatory approvals from the CBN and the Securities and Exchange Commission, analysts say the successful fundraise has largely de-risked Fidelity Bank’s recapitalisation programme and positioned it for post-recapitalisation expansion, according to a report by The Nation.
Efforts to obtain official comments from the bank were unsuccessful, as senior executives declined to speak on the transaction, citing regulatory restrictions.
Background to CBN’s recapitalisation drive
In March 2024, the CBN announced revised minimum capital requirements across the banking sector, setting N500 billion for international commercial banks, N200 billion for national banks, and N50 billion for regional banks.
The regulator gave banks a 24-month compliance window, which expires on March 31, 2026.
According to a financial analyst, Osas Igho, the feat now positions Fidelity Bank as one of the banks to trust in Nigeria.
"You know the battles the bank went through in 2025, To still emerge as a tier-1 lender is a commendable feat," Igho told Legit.ng in an exclusive chat.
"Now, the Nigerian banking landscape is shaping up and getting studier and grabbing global investors' attention," he added.
Ratings upgrade backs capital strength
Analysts say the scale and speed of Fidelity Bank’s capital raise further validate its position among Nigeria’s top lenders.
In its most recent rating action, Fitch Ratings affirmed the bank’s Long-Term Issuer Default Rating at ‘B’ and upgraded its National Long-Term Rating to ‘A+(nga)’, citing stronger capital buffers and improved profitability.
Fitch also highlighted the bank’s expanding franchise, solid operating fundamentals, and healthy foreign-currency liquidity, describing Fidelity Bank as Nigeria’s sixth-largest lender by assets at the end of 2024.
Source: Twitter
Strategic value beyond compliance
Market experts note that, beyond meeting regulatory thresholds, private placements offer strategic advantages, including access to long-term institutional capital, enhanced governance depth, and specialised expertise, all of which strengthen banks’ competitiveness in an increasingly global financial landscape.
Meet 12 of Nigeria’s most capitalised banks
Legit.ng earlier reported that Nigeria’s banking sector was gathering momentum as listed lenders intensify efforts to meet new recapitalisation requirements ahead of the March 2026 deadline.
Banking stocks rallied in 2025 as GTCO, Zenith, UBA and 10 others lifted combined market capitalisation to N16.14 trillion, driven by the CBN’s recapitalisation push ahead of March 2026.
The surge represented an 86.8 percent, N7.5 trillion jump, giving banks 16.23 percent of NGX’s N99.38 trillion equity value overall market.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
