The Group Chief Executive Officer of FCMB Group Plc, Ladi Balogun, has said the company’s ongoing ₦160bn public offer is aimed at building a stronger and more resilient financial institution as part of its long-term recapitalisation drive.
Balogun made this known during the ‘Facts Behind the Offer’ presentation at the Nigerian Exchange Limited (NGX) in Lagos, describing the initiative as a critical phase in FCMB’s strategic plan to meet regulatory requirements and enhance shareholder value.
The new offer follows the bank’s ₦147.5bn capital raise, which was 33 per cent oversubscribed and attracted 42,800 investors, with 92 per cent subscribing digitally via the bank’s mobile app. The previous round, which received approvals from both the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC), demonstrated strong confidence from domestic investors.
Strengthening the Group’s Capital Position
Balogun explained that the fresh offer would enable FCMB to retain its international banking licence, deepen its capital base, and position the group for sustainable growth in line with the CBN’s new ₦500bn capital requirement for international banks.
Tracing FCMB’s long-standing partnership with the Nigerian Exchange, he revealed that the group had raised approximately $863m (₦1.3tn) through the NGX since inception, with the majority coming from local investors.
“The cost of funds remains high due to the 50 per cent cash reserve requirement, meaning half of deposits earn zero interest. Raising equity helps repay expensive deposits, effectively creating higher yields on that capital,” Balogun explained.
“Following FCMB’s 2024 capital raise, our net interest margin rose to 9.1 per cent, and return on equity reached 20 per cent by mid-year. We expect a similar outcome after this new raise closes in November 2025.”
He further disclosed that FCMB recorded a 23 per cent increase in profit before tax and 20.6 per cent return on equity in its H1 2025 financial results, underscoring the bank’s operational strength.
Economic Outlook and Investor Confidence
Balogun reaffirmed FCMB’s confidence in Nigeria’s economic trajectory, noting that sustained GDP growth of at least seven per cent annually is vital for long-term poverty reduction.
“The Central Bank of Nigeria is driving reforms that are already supporting improvement in growth and stability,” he said, while urging shareholders “to maintain or increase their investments to avoid dilution.”
NGX Commends FCMB’s Transparency
In his remarks, NGX CEO, Jude Chiemeka, commended FCMB for its proactive investor engagement, describing it as a model of transparency and corporate responsibility in Nigeria’s financial sector.
“We applaud FCMB’s proactive engagement with investors. The financial sector remains critical to our economy, accounting for over 75 per cent of daily trading on the NGX and contributing ₦2.2tn in taxes over the last four years,” Chiemeka said.
He noted that the exchange had facilitated ₦4.6tn in capital raises across various asset classes in H1 2025, including green and social bonds issued in collaboration with the International Finance Corporation (IFC).
Chiemeka also encouraged FCMB to expand collaboration with the NGX X-Academy on corporate governance and investor education, reinforcing the exchange’s commitment to sustainable market growth.
Strong Share Performance
FCMB’s stock performance continues to reflect investor confidence, appreciating 395 per cent since 2020, equivalent to a 70 per cent compound annual growth rate.
With the successful conclusion of its recapitalisation plan, FCMB Group aims to consolidate its position among Nigeria’s leading financial institutions while driving inclusive economic growth and digital innovation.
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