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The Central Bank of Nigeria and the Securities and Exchange Commission have approved the N147bn rights offer of FCMB Group.

This was disclosed in a statement issued on Monday which was signed by the Company Secretary, Olufunmilayo Adedibu.

This marked the second approval from the CBN in days on the first tranche of capital-raising exercise of banks this year.

It was revealed that the offer was oversubscribed by 33 per cent, attracting 42,800 investors, with 92 per cent subscribing via more convenient digital channels such as the bank’s mobile app and ushering in over 39,000 new investors to the FCMB Group.

The total amount raised and verified by the regulators is N147,508,464,568.60, and N144,559,788,701.30 was absorbed through the issuance of 19,802,710,781 ordinary shares at N7.30 per share, bringing the total post-offer issued shares to 39,605,421,562 shares.

FCMB said that it has also obtained regulatory approvals to use the net proceeds of the public offer to strengthen the capital base of its banking subsidiary, First City Monument Bank.

With the new fund injection, the new capital base of FCMB stands at over N240bn, which exceeds the minimum requirement for a national banking license.

The firm said it is aiming to retain its international banking licence and would be able to achieve that target with the subsequent phases of the FCMB Group’s capital program.

Commenting on the successful completion of the public offer, the Group Chief Executive, Mr. Ladi Balogun, said, “We are grateful to our existing shareholders and new investors for coming out strongly to support this offer. The success of the public offer reflects significant investor confidence in our strategy and growth potential, as well as trust in the board, leadership, and our people to fulfil our commitments and realise this potential.

“We also extend our profound appreciation to the Central Bank of Nigeria, the Securities and Exchange Commission, and the Nigerian Exchange Limited for their continued foresight, innovation, guidance, and support, which has been instrumental in achieving this significant milestone.

“This marks an important step forward in our journey to unlock new opportunities, create value for our shareholders, and contribute to the economic growth of Nigeria and Africa. We remain committed to executing the subsequent phases of our capital-raising program in 2025.”

At the recently held Extraordinary General Meeting, shareholders approved the plans to raise N340bn as additional capital.

-By Oluwakemi Abimbola

Stanbic IBTC Bank has solidified its position as the leading bank for capital importation in Nigeria, capturing an impressive 28.30 per cent of total foreign capital inflows in the first nine months of 2024, according to data from the Central Bank of Nigeria (CBN).

The central bank said the subsidiary of the Standard Bank Group attracted approximately $2 billion in capital imported in the period under review, demonstrating its performance during the pivotal year of 2020, which was marked by unprecedented global economic challenges.

The parallel with 2020 is particularly significant, coinciding with the onset of the COVID-19 pandemic, which significantly impacted Foreign Direct Investments (FDI) and Foreign Portfolio Investments (FPI).

Stanbic IBTC Bank weathered this storm and strategically positioned itself to capitalise on the post-pandemic economic recovery.

The lender rapidly digitised its banking operations, maintained robust risk management protocols, and supported clients through unprecedented economic uncertainty while leveraging technology to maintain seamless international financial connections.

With approximately $2 billion in capital importation, Stanbic IBTC Bank has demonstrated its ability to attract international investments during a critical economic reconstruction period.

This performance surpasses its 2023 figures of $919 million, highlighting the Bank’s growing global credibility.

At the heart of this success lies the organisation’s Fitch Triple A ratings for the Holding Company and the Bank subsidiary, which offer investors a beacon of stability in an uncertain global financial landscape.

“We are incredibly proud of what we have achieved with this milestone, as our performance in capital importation goes beyond mere financial metrics; it reflects our strong commitment to making Nigeria an attractive destination for global investors.

“By utilising our international networks and deep local expertise, we facilitate capital flows and actively reshape Nigeria’s economic narrative in the post-pandemic global landscape,” the chief executive of Stanbic IBTC Bank, Mr Wole Adeniyi, stated.

The financial institution’s strong affiliation with Standard Bank Group brings global expertise crucial for navigating post-pandemic economic complexities.

Its highly competent Corporate & Investment Banking team has been instrumental in strategically attracting international capital during economic reconstruction.

This leadership in capital importation reflects broader economic trends, facilitating international investment during global economic rebalancing, supporting Nigeria’s economic recovery, and bridging local economic needs with global investment opportunities.

The $2 billion capital importation in 2024 is not just a number but a narrative of resilience. Where 2020 represented a survival challenge, 2024 symbolises strategic triumph – transforming pandemic-induced disruptions into opportunities for growth and international financial reconnection.

Stanbic IBTC Bank is now positioned to potentially surpass other foreign-affiliated Banks in Nigeria as the primary conduit for foreign capital. This trajectory speaks volumes about its strategic adaptability in a post-pandemic world.

More than a financial achievement, this milestone represents a critical contribution to Nigeria’s economic renaissance. Stanbic IBTC Bank continues to play a pivotal role in driving economic progress and international investment appeal to Nigeria.

The organisation has effectively demonstrated how domestic financial institutions can survive global economic challenges and emerge as leaders in the global financial ecosystem.

-By Modupe Gbadeyanka

The value of the Nigerian currency improved against its American counterpart at the parallel market on Boxing Day of 2024, Thursday, December 26.

Business Post reports that the domestic currency appreciated against the greenback during the session by N10 to settle at N1,640/$1 compared with the preceding session’s value of N1,650/$1.

The official market was closed yesterday due to the public holiday declared by the federal government to celebrate Christmas.

However, the black market was operational, and trading activities went smoothly.

The local currency firmed up on Thursday due to a decline in customer demand for forex. The country has continued to witness FX inflows from Nigerians in the diaspora, who returned to celebrate the period with their loved ones.

A few of the FX traders on the streets of Lagos informed this reporter that the demand for forex has significantly slowed because of the inflows, but expect a sharp rise from next month when most of the people will return to base.

“Market is a bit dull and it is understandable. We expect things to pick up from next week or so when most of those who returned from abroad are returning.

“Don’t also forget that new travellers will need forex. This is when we will know if the new system of the Central Bank of Nigeria (CBN) is effective,” one of the FX traders in Lagos, who asked not to be named, told this newspaper.

Recall that early this month, the central bank launched the Electronic Foreign Exchange Matching System (EFEMS) for forex trading at the official market known as the Nigerian Autonomous Forex Exchange Market (NAFEM).

This platform was created for transparency in the forex market, with a minimum trade value of $100,000 for interbank foreign exchange trading.

A few days ago, the CBN granted Bureaux de Change (BDC) operators temporary access to the official market as part of efforts to further strengthen the Naira in the currency market.

The CBN in a notice on Friday said BDC operators would have access to FX at the official market from December 19, 2024, to January 30, 2025, with a weekly cap of $25,000.

–By Dipo Olowookere

Eight Nigerian banks closed December 24 with a total market capitalisation of N7.20tn, reflecting a gain of N109.10bn from the N7.09tn recorded on December 23, The PUNCH reports.

The market witnessed mixed performances across key players, with some stocks recording gains, while others remained steady or declined marginally.

United Bank for Africa led the gainers with a 2.86 per cent increase in its share price to N36.00 from N35.00, pushing its market capitalisation to N1.23tn from N1.20tn. Trading activity surged as 51.17m shares were exchanged in 563 deals, up from 26.38m shares in 686 transactions the previous day.

Zenith Bank PLC remained steady at N46.00, maintaining its market capitalisation at N1.44tn. However, trading volume fell significantly to 15.12m shares in 338 deals, compared to 34.65m in 500 transactions on December 23.

FBN Holdings PLC posted a 2.76 per cent increase in its share price to N27.90 from N27.15, boosting its market capitalisation to N1.00tn from N974.56bn. Trading volume dropped to 2.89m shares in 164 trades, down from 5.06m in 275 deals on December 23.

Fidelity Bank PLC’s share price increased 5.11 per cent, closing at N17.50 from N16.65. Its market capitalisation rose to N560.21bn from N533.00bn, with 12.51m shares traded, compared to 21.98m shares the previous day.

Guaranty Trust Holding Company PLC saw a 1.36 per cent decline in its share price to N57.95 from N58.75, resulting in a drop in market capitalisation to N1.71tn from N1.73tn. The company experienced reduced trading activity, with 17.42m shares exchanged in 179 deals, down from 39.38m shares in 345 transactions on December 23.

Sterling Financial Holdings Company PLC recorded the highest percentage gain, with its share price rising by 6.36 per cent to N5.85 from N5.50. This increased its market capitalisation to N168.42bn from N158.35bn. Trading activity included 8.53m shares exchanged in 163 deals, compared to 9.79m shares in 218 trades the previous day.

Wema Bank PLC closed on a positive note, with a 2.86 per cent increase in its share price to N9.00 from N8.75. Its market capitalisation grew to N192.87bn from N187.51bn, with 5.60m shares traded in 125 deals, up from 4.25m shares in 136 trades the previous day.

When contacted, the Chief Executive Officer of Cowry Treasurers Limited, Charles Sanni, emphasised that banks are crucial drivers of the economy, which naturally generates investor sentiment towards acquiring shares in these institutions. He explained that banks provide liquidity, making them a key asset for investors looking to easily convert their holdings into cash. According to Sanni, foreign investors are more likely to target banks as their first choice when entering the Nigerian market.

He further noted that as banks raise capital, they deploy it strategically, which is especially important in the context of high inflation rates that also contribute to their increasing profits. Sanni pointed out that while most banks are exercising caution in lending, leading to difficulties for borrowers, the recapitalisation of the banking sector has provided a major boost. This, he said, gives banks more capital to engage in business activities.

“The banks are crucial drivers of the economy, and naturally, people will have sentiment in acquiring shares of banks.” He explained that banks provide liquidity, adding, “As an investor, you will be looking at how you can quickly convert your asset to cash, and the bank provides that.” Sanni further emphasised that, “If foreign investors are confirmed, the banks are the first place they are coming to.”

He stated that regardless of whether it’s government spending or consumer activity, the banking sector remains a consistent money-making force.

“As the banks are raising capital, they are deploying it. The inflation rate is high, so their profit is also high.”

Sanni pointed out that, “Most banks are not lending cleanly, so the borrowers are suffering,” but emphasised that “recapitalisation is a major boost,” as it allows banks to have more capital to do business with.”

In March, the CBN announced new capital requirements for the banks, aimed at strengthening financial institutions and achieving President Bola Tinubu’s $1tn economic target. The directive raised the minimum capital requirement to N500bn for commercial banks with international authorisation from the N25bn threshold in 2005. The apex bank pegged the new capital requirement for national banks at N200bn and N50bn for regional banks.

-By Temitope Aina

Lasaco Assurance Plc has invited all customers, claimants, and stakeholders with outstanding claims yet to be finalised by the company to come forward with the necessary documents for prompt resolution.

In a statement on Thursday, the company said it was part of its commitment to ensuring transparency, efficiency, and customer satisfaction.

The company said the call applies to individuals, businesses, or entities with pending claims or unresolved matters under any of its insurance policies.

Lasaco advised claimants to provide documents (where applicable), such as an original copy of the insurance policy or certificate, outstanding relevant documents substantiating the insurance claim, and valid means of identification (National ID, International Passport, or driver’s license).

“For assistance with document preparation or clarification on required documents, please contact us via info@lasacoassurance.com.

Lasaco Assurance Plc remains dedicated to upholding the highest standards of service excellence. This exercise aims to ensure that all valid claims are processed and resolved promptly. We appreciate your cooperation and patience as we work towards closing any outstanding claims.”

Recall that the National Insurance Commission in November issued a directive to insurance companies to settle all outstanding claims by December 31, 2024, in a move aimed at reinforcing industry credibility and accountability.

This mandate was communicated by Mrs. Ebelechukwu Nwachukwu, Head of the Communication and Stakeholders Management Sub-committee of the Insurers Committee, following a meeting in Lagos.

According to Nwachukwu, who is also the Managing Director of Rex Insurance Ltd., the Commissioner instructed CEOs to ensure that no outstanding claims appear in their financial books by the close of 2024.

“The regulator emphasised a targeted approach to verifying the accuracy of outstanding claims on insurers’ records,” she said.

-By Oluwakemi Abimbola