ABUJA, June 6 – Nigeria’s Fidelity Bank (FIDELIT.LG) announced on Thursday plans to raise up to ₦127.1 billion ($88 million) through a rights issue and public share offering to comply with the central bank’s new minimum capital requirements introduced in March.
Thank you for reading this post, don't forget to subscribe!The central bank stated on Tuesday that local lenders have begun submitting plans to meet the new minimum capital thresholds, aiming to strengthen the financial system and support economic growth.
Under the new rules, commercial banks with international authorization must have at least ₦500 billion ($345 million) in capital. More than 20 Nigerian lenders will need to raise additional capital within two years to meet this requirement.
Fidelity Bank’s share sale will commence on June 20 and conclude in July. Shareholders approved the capital-raising plan in August last year. The proceeds will be invested in online infrastructure, business and regional expansion, and product distribution channels.
Recently, three of Nigeria’s top-tier lenders, Guaranty Trust Holding Plc (GTCO.LG), Access Holding (ACCESSCORP.LG), and FBN Holdings (FBNH.LG), have also announced capital-raising plans. The central bank has emphasized the need for extra buffers to handle economic shocks, support growth, and bolster resilience following significant naira devaluations since June last year.
Nigeria’s economy has struggled with high inflation and low growth for a decade. Government measures to boost growth have further fueled inflation, leading to interest rate hikes and exacerbating the cost of living crisis.
