Fidelity Bank Reaffirms Regulatory Discipline Amid CBN Forbearance, Raises Capital Buffers Ahead of 2025 Mandate
In a show of financial fortitude and strategic discipline, Fidelity Bank Plc has publicly reaffirmed its commitment to full compliance with the Central Bank of Nigeria’s (CBN) recent regulatory circular granting temporary forbearance on Single Obligor Limits (SOL) and selected credit exposures.
The bank made this disclosure via a statement to the Nigerian Exchange Limited (NGX), in response to CBN circular BSD/DIR/CON/LAB/018/008, which provides temporary reliefs aimed at bolstering capital buffers across the banking sector—a critical part of the apex bank’s broader push to enhance financial stability and recalibrate risk management systems amid macroeconomic headwinds.
Capital Strengthening: Fidelity Charges Ahead of N500bn Requirement
Fidelity Bank, which holds an international banking license, is required to meet the CBN’s revised capital base of ₦500 billion by the 2026 deadline. In a proactive move, the bank has already raised ₦273 billion via a public offer and rights issue—a fundraise that saw robust market interest with oversubscription rates of 237.92% and 137.73%, respectively.
The bank also disclosed that it is set to raise an additional ₦200 billion through a private placement within the 2025 financial year, bringing it within touching distance of the new capital threshold. The private placement has already secured approvals from the CBN and shareholders, while other regulatory clearances are being finalised.
This positions Fidelity Bank as one of the most capital-agile players in Nigeria’s Tier-1 banking league, reinforcing investor confidence at a time when regulatory compliance and capital resilience are under intense scrutiny.
Navigating Forbearance: Focused, Transparent Exposure Management
Addressing market concerns over its participation in the CBN’s SOL forbearance window, Fidelity Bank clarified that the exposure relates to just two obligors, with a clear roadmap to return these exposures within regulatory thresholds before the end of H1 2025.
On broader credit exposure forbearance, the bank confirmed that four customer accounts were involved. It assured stakeholders that adequate provisions have been made, and concrete measures are in place to either restore the accounts to performing status or fully provision for the exposure by the CBN’s stipulated deadline of June 30, 2025.
“Fidelity Bank expects to fully exit all CBN forbearance arrangements by the end of H1 2025 and is well-positioned to meet dividend payment requirements in the current and future financial years,” the statement read.
Dividend Resilience and Investor Assurance
Crucially, Fidelity Bank’s forward-looking compliance posture places it in strong stead to maintain dividend payments—a key metric for institutional investors and retail shareholders amid ongoing market recalibrations. This aligns with broader market expectations that banks who meet or exceed recapitalisation targets ahead of schedule will dominate in investor sentiment, profitability, and asset expansion.
Regulatory Compliance as Competitive Advantage
In a financial system undergoing seismic regulatory changes—from the CBN’s recapitalisation directive to stricter risk exposure frameworks—Fidelity Bank is showcasing what industry experts now refer to as “compliance-led competitiveness.” By aligning early with prudential guidelines, the bank is de-risking its portfolio, futureproofing its governance, and enhancing shareholder value.
With its capital-raising strategy clearly mapped and its risk exposures well-managed, Fidelity Bank is sending a strong signal to regulators and investors alike: it intends not only to meet expectations—but to lead through them.
