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Fidelity Bank Will Beat CBN Recaptalization Deadline—Analyst

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Fidelity Bank $500m Eurobond

Fidelity Bank Plc is making impressive strides on its path to fulfilling the recapitalization targets set by the Central Bank of Nigeria (CBN). With a successful first phase of its capital-raising initiative that recorded over 238% over subscription and share price growth of over 100% evidencing a huge surge in investor confidence for the bank.

Following the successful completion of phase 1 of its capital raise, the bank is exceptionally well-positioned to not only meet the regulatory threshold but also fuel its growth trajectory.

With the recent conclusion of its equity capital raise through a public offer and rights issue, collectively known as the combined offer.

The response has been nothing short of extraordinary, with the public offer oversubscribed by an astounding 237.92 per cent. This translates to 107,588 valid applications for a total of 23,768,724,000 ordinary shares, amounting to N231.7 billion.

The rights issue also shone brightly, achieving a remarkable 137.73% subscription rate with 6,903 valid applications for 4,407,252,795 ordinary shares, totalling N40.7 billion.

The Managing Director of Fidelity Bank, Dr Nneka Onyeali-Ikpe, expressed heartfelt gratitude for the overwhelming support from investors, stating, “The positive results recorded in our combined offer are a testament to the strength of the Fidelity Bank franchise in the capital market.”

Such a robust response not only underscores investor confidence but also reaffirms the bank’s unwavering commitment to delivering innovative financial solutions and sustainable returns to its stakeholders.

Following this remarkable success, Fidelity Bank has secured shareholder approval to launch the second phase of its capital-raising initiatives. This includes a significant increase in the bank’s issued share capital from N26.7 billion to N36.7 billion.

Shareholders endorsed this expansion during an Extraordinary General Meeting on February 6, 2025, approving the creation of an additional 20 billion ordinary shares of 50 Kobo each.

This strategic capital boost positions Fidelity Bank to meet the CBN’s new minimum regulatory capital requirement of N500 billion for banks with international authorization by March 31, 2026. This ambitious goal aligns seamlessly with the bank’s vision for sustainable growth and exceptional service delivery, setting the stage for a dynamic future.

Fidelity Bank’s stock performance has further solidified its status as a top contender in the financial sector. From an initial offer price of N9.75 per share during the public offer, shares soared to a high of N21.15 on February 7, 2025, representing an impressive growth rate of over 116 per cent.

This positions Fidelity Bank as one of the best-performing financial institutions in the market, with analysts from Apel Asset Limited noting an impressive 80 per cent return on investment for shareholders who have held shares since 2023.

Market analysts project a considerable upside potential of 28.88 per cent, establishing a fair value of Fidelity Bank at N23.15 against a reference price of N19.50. Such promising indicators not only enhance investor confidence but also position Fidelity Bank as a compelling investment opportunity within the Nigerian banking landscape.

The funds raised from the initial phases of the capital-raising exercises are earmarked for several key initiatives. Fidelity Bank plans to utilize these resources for local and international business expansion, enhancing technology infrastructure, and improving customer service initiatives. This proactive approach showcases the bank’s commitment to innovation and operational excellence.

As the bank gears up for the next phase of its capital-raising initiative, the primary focus remains on achieving its recapitalization targets while consistently delivering value to stakeholders. The bank’s leadership is confident that, with sustained investor support and a robust financial strategy, it will adeptly navigate the evolving landscape of the Nigerian banking sector.

Fidelity Bank’s recent achievements in capital raising signal a pivotal moment in its journey toward strengthening its financial foundation. With robust investor backing, strategic capital allocation, and a clear vision for growth, Fidelity Bank is not just on track to meet its recapitalization target—it is poised to exceed it.

The road ahead promises to be one of sustained growth and innovation, reinforcing Fidelity Bank’s position as a leader in the Nigerian financial sector. As the bank looks toward the future, it remains steadfast in its commitment to fostering strong relationships with investors and delivering on its promise of financial excellence and exceptional customer satisfaction.

Fidelity Bank’s proactive measures and impressive market performance pave the way for a brighter, more prosperous future—one where it continues to lead with integrity and vision in the ever-evolving financial landscape.

Banking

Sterling Bank Offers Free Bus Rides to Nigerians

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sterling bank logo

After sparking a national movement with its Zero Transfer Fees campaign, Sterling Bank has once again pushed the boundaries of what corporate citizenship can mean to everyday Nigerians.

Last week, regular Lagosians stepping out after long workdays were met with an unexpected gift: Sterling OneBank-branded buses waiting to take them home, free of charge.

Starting as a push against bank transfer fees, the initiative has now taken to the streets, as the bank began offering free bus rides to customers across major Lagos corridors, a gesture that will continue through May 2025 to ease the return of workers after the May Day holidays.

For a city where a single bus fare can be the difference between feeding a family or not, Sterling’s free ride initiative struck a deep chord. What began with free transfers through its OneBank platform has now evolved into a movement on wheels, connecting digital convenience with real-world survival. In a time of skyrocketing costs, the bank is reaffirming a simple belief: financial freedom should not end at the removal of bank charges, it should move you, carry you, and lift you.

Across Lagos, from Obalende to Ikorodu and TBS to Oshodi, the sight of Sterling buses pulling up to offer free rides sparked moments of disbelief, gratitude, and quiet celebration. For thousands of commuters, it was a tangible reminder that sometimes, the biggest changes come not from slogans, but from small, deliberate acts of care.

“For customers who have to choose between transport fare and groceries, this is more than a ride, it’s hope,” said Chidimma Okoli, Masterbrand Marketing Lead at Sterling. “When we said we were tearing down the barriers to moving your money, we meant it. But we also meant the barriers to moving yourself, to moving your dreams, to moving your life forward.

This isn’t just about banking apps. It’s about freedom, in every sense of the word.”

Mary E., a market trader from Oshodi, stepped off a Sterling bus last Friday and captured the mood perfectly. “This is the first time a bank is not just advertising but acting,” she said, beaming. “I have saved on transfers all month because of OneBank. And today, I saved on my transport. Sterling ehn, dem sharp. Dem dey move.”

Across town, a young professional shared his own experience on LinkedIn: “Every naira matters o. I already saved money on bank transfers using OneBank. Today, Sterling saved me time, money, and stress after a brutal day at work. They just get it.

Another rider, Amaka I., a single mother and hairdresser from Ajah, described the free ride as “a blessing nobody told me was coming.” She added, “We Lagos people work so hard just to move. Today, I didn’t have to count Naira for my bus fare. That is dignity. That is respect.”

Chidimma Okoli emphasized that this initiative was never about fanfare, but about putting philosophy into action. “Financial systems have for too long extracted from Nigerians,” she said. “At Sterling, we are making a different choice. We are giving back, not just in naira and kobo, but in opportunities, in relief and in real dignity.” This initiative builds on Sterling’s history of standing with Nigerians during critical moments.

During the pandemic, Sterling was one of the first banks to support remote work transitions and provide digital lifelines to struggling SMEs. Through programs like AltSchool Africa and entrepreneur bootcamps, Sterling has opened new doors to skills development and affordable financing. After fuel subsidies were removed, the bank financed transport cooperatives to keep mobility alive for thousands who would otherwise have been stranded.

But according to Okoli, what matters now is not history, it’s momentum. “We’re not trying to relive past glories,” she said. “We’re building new victories, alongside the people who trust us every day with their journeys.”

Beneath the buses and smiling faces lies a deeper story of infrastructure strength. Sterling’s robust digital banking backbone, capable of handling over 180 million transactions and scaling rapidly, allows it to absorb costs that many banks would have pushed onto customers. It is this invisible engine that has further helped make visible change possible.

As the month of May approaches, the momentum will continue. Workers returning from the holidays can expect to find the free rides still running across locations, a daily reminder that real banking doesn’t just live in apps but also on the streets, in the choices that make hard lives a little easier.

Sterling is encouraging all riders to share their experiences online, turning thousands of quiet journeys into a loud statement that Nigeria deserves a financial system that carries its people forward, not holds them back. Because true banking is not about hoarding profit; it is about moving lives and moving freely.

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Banking

Delight as NDIC Begins Payment of Heritage Bank N46.6bn Liquidation Dividends

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seals Heritage Bank

By Adedapo Adesanya

The Nigeria Deposit Insurance Corporation (NDIC) has started the payment of N46.6 billion in liquidation dividends to depositors of the defunct Heritage Bank months after a series of delays, a development that has created excitement among customers.

In a statement on Sunday, the Acting Head of Communication and Public Affairs at the corporation, Mrs Hawwau Gambo, noted that the funds were from sales of the bank’s assets and recovery of debts owed.

Mrs Gambo explained that a liquidation dividend is paid to depositors of a closed bank, beyond the maximum insured limit, using proceeds from asset sales and debt recovery, adding that it may also cover payments to creditors and shareholders once all depositors have been fully reimbursed.

The NDIC began payment of the first tranche of liquidation dividends on April 25.

According to Mrs Gambo, the initial dividend is paid at 9.2 kobo per Naira on a pro-rata basis to depositors with balances above N5 million, noting that further payments would be made as more assets of the defunct bank are realised and outstanding debts recovered.

Following the revocation of Heritage Bank’s licence by the Central Bank of Nigeria (CBN) on June 3, 2024, NDIC immediately reimbursed insured deposits up to N5 million.

To ensure a seamless process, NDIC used depositors’ Bank Verification Numbers (BVN) to locate alternate accounts and automatically credit the insured amounts.

The corporation also used existing records from insured payments to disburse the first tranche of liquidation dividends.

“Depositors with balances exceeding N5 million who did not receive their liquidation dividends should visit the nearest NDIC office.

“Depositors without alternative bank accounts, who were not paid the insured amount, should also visit NDIC offices or download forms from www.ndic.gov.ng.

“Depositors must complete and submit a deposit verification form to receive their insured amounts and, where applicable, the first tranche of dividends,” Mrs Gambo said, reiterating the agency’s commitment to ensuring the recovery of assets and the reimbursement of all eligible depositors.

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Removing Bottlenecks Boosting FX Inflows—Cardoso

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Foreign Exchange FX Inflows

By Adedapo Adesanya

The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, says removing identified bottlenecks is helping the country in terms of foreign exchange inflows.

He disclosed this at a meeting of the Nigerian government delegation led by the Minister of Finance and the Coordinating Minister of the Economy, Mr Wale Edun and international investors on the sidelines of the ongoing Spring Meetings of the IMF and World Bank in Washington D.C.

The central banker assured the global investment community that the apex bank will strengthen its processes to sustain gains from recent reforms and confidence in the economy.

Mr Cardoso stated that the “difficult reforms that have been undertaken have begun to bear fruit,” adding that  “the numbers speak for themselves”, indicating positive developments in the Nigerian economy.

He highlighted the significant progress made in the remittance space noting that initial scepticism was overcome.

He said monthly remittances increasing from approximately “$200 million plus  on a monthly basis to a peak of around $600 million by August [2024]”.

He said this was achieved by “understanding where the bottlenecks were and we  did everything to remove them” and by closing the gap on different exchange rates.

Mr Cardoso also explained that engaging with the diaspora community through roadshows also yielded positive responses.

“The CBN has also involved the banking system in these efforts, including targeted outreach to non-resident Nigerians,” he said.

Governor Cardoso stressed the importance of a competitive Naira, describing this as a game changer and a great transformative tool that has shifted how foreign direct investors view Nigeria, noting that investors are increasingly comfortable with the availability of a competitive currency, making business more attractive.

Speaking on the global economy and how developments in the oil market affects Nigeria, an exporter of crude oil, Mr Cardoso reassured that the impact of oil price fluctuations is “quite manageable”.

He also promised that the country will continue on bettering policies that attract investments into core sectors.

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