First City Monument Bank (FCMB) has successfully concluded a N500 billion capital-raising exercise, fully complying with the Central Bank of Nigeria’s (CBN) March 31, 2026, recapitalisation deadline for commercial banks.
The achievement was announced in a statement signed by FCMB Group Chief Executive Officer, Ladi Balogun, on March 8, 2026. The capital raise strengthens the bank’s financial position and aligns it with the CBN’s enhanced minimum capital requirements introduced to bolster the resilience and competitiveness of Nigeria’s banking sector.
“FCMB Group Plc announces the successful completion of the capital raise programme undertaken for its banking subsidiary, First City Monument Bank Limited,” the statement read.
The exercise received necessary regulatory approvals from the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), and the National Pension Commission (PenCom).
Breakdown of the Capital Raise
The funds were mobilised through a combination of:
A 2025 public offer that generated approximately N231.8 billion in gross proceeds.
The minority divestment of about 10% of the issued share capital of FCMB Pensions Limited, which brought in an additional N11 billion.
These inflows, alongside other strategic capital injections, enabled FCMB to surpass its revised target and meet the CBN’s threshold.
The group’s recapitalisation journey evolved over time:
Initial target in 2024: N340 billion
Revised target in 2025: N370 billion
Final target in November 2025: N400 billion (following CBN directive)
FCMB emphasised that the capital expansion was structured in a manner that minimises dilution of shareholder value.
Strong Financial Performance Underpins Growth
The successful recapitalisation is supported by robust underlying performance. In 2025, FCMB delivered:
Pre-tax profit: N200.91 billion (up 80% year-on-year)
Gross earnings: N1.13 trillion (up 41.8%)
Post-tax profit: N176.91 billion (up 141.7%)
The strengthened capital base is projected to significantly enhance earnings per share (EPS), rising from N1.85 in 2024 to N4.60 by 2026, driven by strong returns on equity and improved operational efficiency.
Broader Sector Context
FCMB joins a growing list of Nigerian banks that have met the CBN’s new minimum capital thresholds. According to the apex bank, 30 banks have already complied with the requirements through a mix of rights issues, initial public offerings (IPOs), private placements, and other capital-raising instruments, with a total of 33 banks actively participating in the sector-wide recapitalisation programme.
The CBN’s initiative aims to enhance banks’ capacity to support large-scale lending, absorb potential shocks, and contribute more effectively to Nigeria’s economic growth and financial stability.
Strategic Positioning
With the recapitalisation now complete, FCMB is well-positioned to capitalise on emerging opportunities in retail banking, digital financial services, corporate lending, and trade finance. The bank’s enhanced capital adequacy is expected to support greater lending capacity, improved risk management, and sustained growth in a competitive operating environment.
The successful completion of the capital raise marks a significant milestone for FCMB and reinforces confidence in the resilience and forward momentum of Nigeria’s banking industry as it aligns with stricter regulatory standards and evolving market dynamics.
