KEY POINTS

• FCMB capital raise of up to ₦400 billion wins shareholder approval.
• FCMB capital raise supports compliance with 2026 CBN rules.
• Strong earnings underpin confidence in the FCMB capital raise.

FCMB Group Plc secured shareholder approval to raise as much as ₦400 billion ($274 million), clearing a key hurdle as the Nigerian financial services holding company moves to retain its international banking license and comply with tougher capital rules set by the central bank.

Investors granted the approval at an extraordinary general meeting, endorsing an expanded capital plan designed to put the group comfortably ahead of the Central Bank of Nigeria’s March 2026 recapitalization deadline. For FCMB, the vote offers both regulatory headroom and an endorsement of management strategy after a year of strong earnings momentum.

In a filing with the Nigerian Exchange, the group said its flagship banking subsidiary is already on track to meet the higher minimum capital threshold. FCMB added that it has completed a public offer and expects to conclude the sale of a minority stake in one of its units before the end of December.

“Subject to capital verification by the CBN, shareholder approval and the required regulatory consents, we are positioned to deliver the ₦500 billion capital target ahead of the March 2026 deadline for FCMB Limited,” the company said.

FCMB capital raise supports growth plans

Group Chief Executive Officer Ladi Balogun told shareholders the additional capital would be deployed prudently, with a focus on strengthening the balance sheet and supporting long-term returns. He said the funds would help improve capital adequacy, reduce reliance on high-cost deposits and support investments in technology, people and offshore operations.

Shareholders also approved the acceptance of oversubscription from FCMB’s 2025 public offer, subject to regulatory limits. Management said the oversubscription signaled strong investor appetite for the lender’s equity story.

According to Billionaires Africa, as part of the resolution, FCMB’s issued share capital will increase through the creation of additional ordinary shares required to complete the fundraising. The new shares will rank pari passu with existing ones.

FCMB capital raise boosts shareholder outlook

Balogun said the stronger capital position should translate into improved shareholder returns. He said earnings per share will grow by more than 50 percent on average over the next two years, while stronger capital adequacy—remaining above 20 percent—will improve dividend capacity.

Founded in 1982 by Otunba Subomi Balogun, FCMB has expanded into a diversified financial group serving retail, commercial and institutional clients. For the nine months ended Sept. 30, the group reported gross earnings of ₦828.1 billion, up 40.9 percent from a year earlier. Profit after tax rose 52 percent to ₦125.45 billion, lifting return on average equity to 22.4 percent.

Finally with capital verification ongoing and regulatory approvals pending, FCMB says it remains on track to complete recapitalization well ahead of the deadline, positioning the group for its next phase of growth.