FCMB Group Plc has emerged as one of the first mid-tier lenders to complete the capital raising required under the Central Bank of Nigeria’s (CBN) banking recapitalisation programme, positioning the group for expansion as the sector braces for a new wave of consolidation.
The financial services group confirmed in a regulatory filing on March 9 that its banking subsidiary, First City Monument Bank Limited, has successfully secured sufficient capital to retain its international banking licence under the revised capital framework introduced by the Central Bank of Nigeria.
The early compliance comes weeks ahead of the March 31 deadline set by the regulator and signals a major move by FCMB from defensive capital raising toward growth positioning within Nigeria’s evolving banking landscape.
The CBN’s recapitalisation policy has triggered a major transformation across Nigeria’s banking sector, requiring lenders to significantly strengthen their capital bases.
Under the new framework, banks operating with international licences must maintain a minimum capital base of N500 billion, calculated strictly from paid-up share capital and share premium.
For many mid-tier lenders, the requirement has prompted a race to raise fresh equity, restructure assets or explore potential mergers to meet the new benchmark.
FCMB’s strategy has been notable for combining capital market fundraising with internal asset optimisation.
Equity raise drives investor participation
The cornerstone of the recapitalisation effort was a public offer that raised ₦231.8 billion, attracting strong participation from both institutional investors and retail shareholders.
Market analysts say the scale of investor demand reflects confidence in the group’s long-term growth strategy and the broader outlook for Nigeria’s financial sector.
Prior to the capital raise, FCMB had N266.5 billion in verified eligible capital as of December 31, 2025, based on audited accounts.
To bridge the remaining gap, the group also unlocked capital from its non-banking operations through the divestment of approximately 10 per cent of its stake in FCMB Pensions Limited.
The transaction generated about N11 billion, bringing the group’s total eligible capital to N509.3 billion, comfortably above the regulatory requirement.
The move highlights a growing trend among Nigerian financial groups to monetise profitable subsidiaries in order to support their core banking operations during the recapitalisation cycle.
The recapitalisation programme received approvals from key regulators, ensuring full compliance with the country’s financial oversight framework.
According to the company, the exercise was cleared by the Central Bank of Nigeria, which confirmed the bank’s eligibility to retain its international banking licence.
The public offer was also validated by the Securities and Exchange Commission Nigeria (SEC), while the change in shareholding structure at the pension subsidiary received approval from the National Pension Commission.
The alignment of regulatory approvals removes a major uncertainty surrounding the capital raise and provides a stable platform for the bank’s next growth phase.
With the recapitalisation completed ahead of schedule, analysts say FCMB could gain a competitive advantage as consolidation reshapes Nigeria’s banking sector.
Banks that meet the capital requirement early are expected to pursue expansion opportunities, acquisitions or strategic partnerships as weaker institutions struggle to raise fresh capital.
For FCMB, maintaining its international banking licence remains central to its long-term strategy.
The licence allows the bank to continue expanding operations across global trade corridors, particularly in markets linked to Nigeria’s corporate and export sectors.
Cross-border banking services, including trade finance, foreign exchange transactions and international payments, have become increasingly important as Nigerian companies deepen their participation in global trade.
The strengthened capital base also provides a cushion ahead of upcoming regulatory stress tests scheduled to begin in April.
The tests, organised by the Central Bank of Nigeria, will evaluate the resilience of banks under adverse economic scenarios, including stricter loan provisioning requirements.
One key focus will be the CBN’s rule requiring 100 per cent provisioning for insider-related loans, a measure designed to strengthen governance and risk management within the banking system.
By raising capital above the regulatory threshold, FCMB has created additional headroom on its balance sheet to absorb potential loan losses and maintain strong capital adequacy ratios.
