Fidelity Bank Clears Air On CBN Forbearance, Eyes Full Compliance By June

Fidelity Bank Plc has reassured shareholders, investors, and stakeholders of its strong financial health and unwavering commitment to regulatory compliance, following the Central Bank of Nigeria’s (CBN) recent circular on forbearance loans and Single Obligor Limit (SOL) exposures.

In a statement signed by its Company Secretary, Ezinwa Unuigboje, and dated June 18, 2025, the bank affirmed its readiness to meet all regulatory obligations within the first half of 2025, including full exit from forbearance arrangements. The CBN directive, referenced as BSD/DIR/CON/LAB/018/008, was issued to enhance financial prudence and capital adequacy across the banking sector.

As part of efforts to bolster its capital base in line with new CBN requirements, Fidelity Bank recently concluded a highly successful Public Offer and Rights Issue, which were oversubscribed by 237.92% and 137.73% respectively, raising ₦273 billion. The bank further disclosed its intention to raise an additional ₦200 billion through a Private Placement in the 2025 financial year to meet the ₦500 billion minimum capital requirement for banks with international authorization.

Shareholder and CBN approvals have already been secured for the Private Placement, while other regulatory consents are in progress to ensure timely completion.

Fidelity Bank clarified that its exposure under the SOL forbearance applies to only two obligors, and measures are actively being implemented to bring these exposures within permissible limits by the end of H1 2025. Additionally, the bank confirmed that forbearance on other credit facilities pertains to four customers, noting that substantial provisions have already been made and further steps are being taken to either fully provision or return the accounts to performing status by June 30, 2025.

With these decisive actions, Fidelity Bank anticipates a complete exit from all CBN forbearance frameworks by mid-year and expects to remain in a position to pay dividends for the current financial year and beyond.

The bank used the opportunity to extend its appreciation to its investors, customers, and wider stakeholder community for their continued confidence and unwavering support.

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By Lekan Olofinsusi