FCMB Group Launches ₦160 Billion Public Offer

FCMB Group Plc has announced the commencement of its highly anticipated Public Offer for Subscription of 16 billion ordinary shares at ₦10.00 per share, targeting a total raise of ₦160 billion. The capital-raising initiative is a strategic move to strengthen the capital base of First City Monument Bank Limited (FCMB), its wholly-owned banking subsidiary, and position the Group for long-term growth in compliance with the Central Bank of Nigeria’s (CBN) ₦500 billion minimum capital requirement for international banks.

Strengthening Capital Structure for Future Growth

The FCMB public offer 2025 officially opened on October 2, 2025, and will close on November 6, 2025. The Group expects to realize net proceeds of ₦156.6 billion after deducting estimated issuance expenses of ₦3.4 billion, representing approximately 2.13% of gross proceeds. These funds will be downstreamed to First City Monument Bank Limited to reinforce its capital adequacy, enhance its balance sheet resilience, and support expansion into high-growth areas such as digital banking, corporate lending, and trade finance.

According to FCMB Group, the capital raise forms part of a broader recapitalization strategy designed to ensure full compliance with the CBN directive issued on March 28, 2024, which mandates all banks with international licenses to achieve a minimum capital base of ₦500 billion by March 31, 2026.

Phased Capital Growth Strategy

The Group’s recapitalization journey began in 2024, following the CBN’s announcement of the new capital thresholds aimed at strengthening the Nigerian banking sector and improving systemic stability. As of March 2024, FCMB’s paid-up capital stood at ₦102 billion, prompting management to initiate a structured capital-raising plan to meet the regulatory target.

In December 2024, FCMB successfully raised ₦144.6 billion through a public offer that was oversubscribed by 33%, demonstrating robust investor confidence and strong market appetite for the Group’s shares. In 2025, the Group further secured ₦22.5 billion via a convertible loan instrument, boosting the Bank’s share capital and premium to approximately ₦266 billion.

To achieve full compliance with the ₦500 billion requirement, FCMB Group must raise an additional ₦233 billion. The ongoing ₦160 billion public offer is a central component of this final funding phase.

Investor Confidence and Market Outlook

Analysts across Nigeria’s capital market have described the FCMB Group recapitalization plan as a decisive step toward strengthening the institution’s financial position and enhancing its ability to compete effectively in both domestic and international markets. With the Nigerian financial landscape undergoing significant regulatory transformation, FCMB’s proactive approach positions it favorably among banks seeking to expand regional footprints and attract new capital inflows.

Market observers note that the Bank’s capital expansion will enhance its risk-bearing capacity, improve its lending and investment capabilities, and enable it to scale its digital transformation initiatives. These improvements are expected to boost operational efficiency and shareholder value in the medium to long term.

Financial analysts also highlight that FCMB’s ongoing recapitalization effort demonstrates prudent management, forward-thinking governance, and alignment with global best practices in banking regulation and capital adequacy standards.

Regulatory Alignment and Strategic Vision

The Central Bank of Nigeria’s recapitalization policy—the first major reform since 2005—was introduced to ensure that Nigerian banks maintain strong capital buffers capable of withstanding macroeconomic shocks and supporting the country’s economic growth. Under the new directive, banks with international authorization must hold a minimum capital base of ₦500 billion, while those with national and regional licenses are required to maintain ₦200 billion and ₦50 billion, respectively.

FCMB Group’s Managing Director has reiterated the organization’s full commitment to meeting the CBN’s regulatory requirements well ahead of schedule. He emphasized that the capital raise will provide the Group with the financial flexibility to scale operations, support key sectors of the economy, and deliver consistent value to shareholders.

Sustained Commitment to Shareholder Value

The ongoing public offer not only serves a regulatory purpose but also represents a growth opportunity for new and existing investors seeking to participate in one of Nigeria’s most resilient and diversified financial groups. FCMB Group’s diversified business model spans commercial banking, investment banking, asset management, micro-lending, and fintech services, ensuring sustainable income streams and risk diversification.

With a proven track record of financial innovation and a strong governance framework, FCMB continues to reinforce its reputation as a trusted financial institution dedicated to inclusive growth, sustainability, and digital excellence. The recapitalization will further enable the Group to expand its lending capacity to key economic sectors such as SMEs, agriculture, renewable energy, and infrastructure, while supporting Nigeria’s broader financial inclusion agenda.

Outlook

As the Nigerian banking industry moves toward the March 2026 recapitalization deadline, FCMB Group’s ₦160 billion public offer positions it among the frontrunners in capital compliance. The Group’s forward-looking strategy underscores its resilience, adaptability, and unwavering focus on value creation.

Investors and analysts alike will be closely monitoring the progress of this offer, which is expected to strengthen FCMB’s balance sheet, boost investor confidence, and reinforce its standing as a key player in Nigeria’s evolving financial landscape.