Fidelity Bank Plc announced its intention to exit all regulatory forbearance arrangements by the end of the first half of 2025, responding decisively to the CBN’s recent circular on Single Obligor Limit (SOL) and credit facilities.
The bank’s company secretary, Ezinwa Unuigboje, issued a statement assuring shareholders and stakeholders of the institution’s unwavering commitment to regulatory compliance and financial prudence. The bank characterised the CBN’s directive as a strategic initiative designed to bolster capital buffers across Nigeria’s banking sector.
Demonstrating significant momentum toward meeting the CBN’s ₦500 billion minimum capital requirement for internationally authorised banks, Fidelity has successfully raised ₦273 billion through recent public and rights offerings. The strong investor appetite was evident in the oversubscription rates of 237.92% for the public offer and 137.73 per cent for the rights issue.
To bridge the remaining capital gap, the bank has outlined plans to secure an additional ₦200 billion through a private placement scheduled for the 2025 financial year. The private placement has already secured necessary approvals from both the CBN and shareholders, with other regulatory clearances currently in process.
Addressing its exposure under the Single Obligor Limit forbearance, Fidelity disclosed that only two obligors are involved and confirmed expectations to bring these exposures within prescribed regulatory limits by mid-2025. Additionally, the bank revealed that forbearance on other credit facilities applies to four customers, for which substantial provisions have been made and targeted corrective actions implemented.
“The Bank expects to exit all CBN forbearance arrangements (SOL and credit-related) and remains in a strong position to meet the prevailing requirements to enable it to pay dividends for the current financial year and subsequently,” the statement emphasised.
Access Holdings Plc has similarly reaffirmed its dedication to regulatory compliance and shareholder value creation in response to the CBN’s June 13 directive covering forbearance, single obligor limits, and restrictions on dividends, bonuses, and foreign investments.
The financial services group is implementing “decisive steps” to ensure full compliance with all credit facility regulations by June 30, 2025, while maintaining focus on preserving its robust capital base and continuing uninterrupted dividend payments to shareholders.
Access Holdings has also assured stakeholders of its complete adherence to disclosure obligations outlined under Chapter 17 of the Nigerian Exchange Rulebook, 2015, demonstrating transparency in its regulatory compliance efforts.
Notably, Access Bank Plc, the group’s banking subsidiary, has distinguished itself by already meeting and surpassing the CBN’s ₦500 billion minimum capital requirement for commercial banks with international authorisation as of December 31, 2024.
The bank has also confirmed full compliance with the Single Obligor Limit regulation, a critical prudential measure designed to prevent excessive exposure to individual borrowers, with Access Holdings stating that the bank is proactively maintaining adherence to this regulatory standard.
Both institutions have positioned themselves as leaders in regulatory compliance while maintaining their commitment to delivering sustainable shareholder value. Their proactive responses to the CBN’s requirements signal confidence in the Nigerian banking sector’s ability to adapt to evolving regulatory frameworks while preserving operational strength and profitability.
The banks’ assurances to stakeholders, coming on the heels of similar decision by Zenith Bank, reflect broader industry efforts to strengthen capital adequacy and risk management practices in line with the CBN’s strategic vision for a more resilient banking sector.
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