Good News for Customers as Another Bank Meets CBN’s N500bn Capital Requirement Ahead of Deadline
- FCMB Group has completed a capital raise programme to support its banking subsidiary, FCMB Limited
- The programme received approvals from the Central Bank of Nigeria, the SEC, and the National Pension Commission
- The transactions help position the bank to meet the N500 billion capital requirement for an international licence
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
FCMB Group Plc has announced the successful completion of a capital-raising programme undertaken to strengthen the financial position of its banking subsidiary, First City Monument Bank Limited, and particularly to meet the new requirement for an international banking licence.
In a statement signed by the group chief executive, Ladi Balogun, the company said it had secured all necessary approvals from key regulators, including the Central Bank of Nigeria, the Securities and Exchange Commission, and the National Pension Commission.
Source: UGC
According to the statement published on the NGX, the approvals relate to two transactions conducted as part of the capital-raising programme.
The first is the group’s 2025 public offer, which generated about N231.8 billion in gross proceeds from investors.
The second transaction involves the minority divestment of roughly 10% of the issued share capital of FCMB Pensions Limited. The divestment brought in an additional N11 billion.
FCMB Group said the proceeds from the public offer and the divestment together provide sufficient capital for the bank to meet the revised N500 billion minimum capital requirement for an international banking licence.
The group added that the bank’s verified eligible capital, comprising paid-up share capital and share premium, stood at N266.5 billion as of December 31, 2025.
The company expressed appreciation to regulators, investors, and other stakeholders for their support in completing the capital raise initiative.
Two Nigerian banks to merge
Meanwhile, two major banks are discussing a potential merger before CBN's recapitalisation deadline. This comes as $706 million in foreign investments flood Nigeria's banking sector amid recapitalisation efforts.
Despite the growing buzz, banking executives warn that any merger or major capital injection must pass through strict regulatory procedures before becoming official.
Such transactions would require filings with regulators, approvals from shareholders and disclosures to the Nigerian Exchange Limited.
Industry insiders, therefore, caution that until formal announcements are made, merger rumours should be treated as market speculation.
Source: Getty Images
CBN orders banks to undergo stress test
Legit.ng earlier reported that the CBN directed all commercial banks in the country to conduct financial stress tests as part of efforts to monitor the health and resilience of Nigeria’s banking system.
A stress test is a financial assessment used by regulators to determine how well banks can withstand severe economic shocks such as recessions, currency volatility, or sudden market disruptions.
Based on the directive, banks must evaluate the resilience of their credit portfolios over 12 months. They will simulate various adverse scenarios, including: Deterioration in asset quality, governance and insider lending risks, foreign exchange fluctuations, commodity price crashes, supply chain disruptions, and declining market demand in key sectors
Source: Legit.ng
