FCMB Launches ₦160bn Offer to Strengthen Financial Stability — CEO

First City Monument Bank (FCMB) Group Plc has unveiled a ₦160 billion public offer designed to reinforce its capital base and enhance the long-term resilience of the institution. The move comes as part of the bank’s ongoing recapitalisation plan and aligns with the Central Bank of Nigeria’s directive for stronger capitalisation among Nigerian banks.

During an investors’ presentation at the Nigerian Exchange Limited (NGX), FCMB’s Group Chief Executive Officer, Ladi Balogun, said the capital raise is a strategic step to ensure the bank remains well-positioned to meet regulatory requirements and drive sustainable growth across its diverse business segments. He emphasised that the fresh funds would help the institution consolidate its status as one of Nigeria’s most stable and forward-looking financial institutions.

Balogun explained that the offer, which consists of 16 billion ordinary shares at ₦10 each, will support the group’s goal of building a more robust balance sheet and strengthening its capacity to support large-scale financing projects. He noted that the funds would also be used to expand FCMB’s reach, deepen its digital infrastructure, and enhance its risk management framework.

The FCMB boss stated that the recapitalisation move demonstrates the institution’s proactive approach to ensuring financial resilience amid evolving economic realities. “Our ₦160 billion offer is not just about meeting regulatory expectations; it is about building an institution that can sustain growth, compete globally, and deliver consistent value to shareholders,” Balogun said.

He added that the group’s diversified structure—which includes commercial banking, investment management, pensions, and fintech—positions it advantageously to weather economic shocks and maximise opportunities in Nigeria’s expanding financial landscape.

The new capital raise follows FCMB’s earlier successful ₦147.5 billion offering, which was oversubscribed by about 33 percent. That success, Balogun said, reflects investors’ confidence in the bank’s growth trajectory and management strategy. The new ₦160 billion offering is expected to further bolster its financial capacity, preparing the group for the next phase of expansion in both local and regional markets.

Market analysts view the move as timely, especially as Nigerian banks gear up to meet the CBN’s recapitalisation deadline. The apex bank had recently directed banks with international licences to increase their minimum capital to ₦500 billion, while national banks are required to maintain ₦200 billion. By taking early action, FCMB is positioning itself ahead of regulatory timelines and demonstrating commitment to long-term financial stability.

According to analysts, the capital injection will enable FCMB to support the federal government’s economic reforms by facilitating credit expansion to critical sectors such as manufacturing, agriculture, and renewable energy. The move is also expected to stimulate confidence in the financial system and attract more investment inflows into the banking industry.

The FCMB CEO also noted that the bank’s strong digital transformation agenda remains central to its future growth strategy. He said that significant investments are being channelled into technology and innovation to enhance service delivery, reduce transaction costs, and expand access to financial services, especially for underserved communities.

In recent years, FCMB has strengthened its reputation as a customer-focused and innovation-driven institution. Through strategic partnerships and the integration of fintech solutions, the bank has introduced several digital products that enhance convenience and promote financial inclusion. The planned capital raise will, therefore, allow FCMB to scale these initiatives further and maintain competitiveness in Nigeria’s dynamic financial ecosystem.

Investors have reacted positively to the announcement, with many describing FCMB’s recapitalisation strategy as prudent and forward-thinking. Financial experts believe that the bank’s strong governance framework and diversified business structure provide it with a solid foundation for sustainable profitability. They also note that the timing of the offer aligns with improving macroeconomic indicators, such as increased foreign reserves, a stabilising naira, and easing inflation.

However, experts have cautioned that the success of the offering will depend on investor participation and the efficient deployment of the proceeds. They stress that maintaining cost discipline and prudent lending practices will be crucial in achieving the intended financial stability and growth.

FCMB’s management has expressed optimism about the offer’s outcome, saying it is confident in the support of both retail and institutional investors. The group also reaffirmed its commitment to transparency and accountability, pledging that every kobo raised will be channelled toward strengthening its core operations and expanding opportunities for stakeholders.

Balogun concluded that the bank’s capitalisation plan is not merely a compliance measure but a strategic investment in Nigeria’s financial future. “Our goal is to build a more resilient FCMB that will continue to support economic growth, empower customers, and create long-term value for investors,” he stated.

With this move, FCMB joins other major Nigerian banks currently embarking on capital-raising initiatives to meet new regulatory standards. If successful, the ₦160 billion offer is expected to place FCMB among the most adequately capitalised institutions in the country, well-positioned to navigate economic challenges and sustain growth in the coming years.