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A new report by geopolitical and economic research firm, SBM Intelligence, has praised the recapitalisation strategy of FCMB Group as one of the most effective approaches among Nigeria’s Tier-2 banks. The report, titled “Capital, Competition, and Consolidation,” reviewed how banks are responding to the Central Bank of Nigeria’s (CBN) 2026 recapitalisation directive and described FCMB’s phased plan as a benchmark for financial prudence and sustainable growth.
The Central Bank had directed commercial banks in the country to strengthen their capital base by 2026 in order to ensure greater stability in the financial sector. For international banks, the target is particularly high, requiring them to raise significant funds to meet new minimum capital thresholds. This has triggered a wave of capital raising strategies across the industry, from mergers to public offerings.
According to SBM Intelligence, FCMB Group’s approach stands out because of its careful balance between growth, risk management, and investor confidence. The report explained that FCMB is aiming to raise about ₦400 billion through a phased programme that reduces the risk of heavy earnings dilution while keeping shareholders and investors assured of the bank’s long-term prospects.
The first stage of the recapitalisation drive was completed in early 2025 through a public offer. That offer proved to be a major success, as it was oversubscribed by 33%, bringing in ₦144.6 billion. Analysts say this level of subscription reflects strong market confidence in FCMB’s leadership and the bank’s ability to deliver returns.
The SBM report noted that while some banks are pursuing aggressive high-growth strategies to meet the recapitalisation deadline, FCMB has adopted a steady and balanced path. The bank is prioritising core banking operations, risk-adjusted returns, and digital efficiency rather than overstretching into risky expansion.
Evidence of this prudence is seen in the bank’s non-performing loan (NPL) ratio, which stands at 4%. This figure is comfortably below the 5% regulatory threshold and suggests that the bank has kept loan defaults under control, even in a challenging economic environment.
Financial results from the first quarter of 2025 also show that FCMB’s strategy is already yielding positive outcomes. The bank reported gross earnings of ₦252.7 billion, representing a 41% year-on-year increase. Interest income surged by 71%, a performance that exceeded internal projections. This indicates that the bank has been able to capitalise on market opportunities without losing focus on stability.
The report concluded that FCMB’s strategy reflects prudent management and strong operational discipline. It added that these qualities will be essential in navigating Nigeria’s evolving financial landscape, which is moving towards consolidation as banks merge or strengthen their capital base to meet regulatory requirements.
Beyond meeting capital requirements, SBM Intelligence said FCMB’s approach positions it as a bank that can contribute to wider financial stability, investor confidence, and economic growth. By coupling capital strength with digital innovation and operational efficiency, FCMB appears set to play a significant role in the future of Nigerian banking.
Industry observers note that this recognition is particularly important as banks are under pressure to raise funds in an economy where investors are cautious. The success of FCMB’s oversubscribed public offer and the clear plan for future stages of fundraising may serve as a guide for other Tier-2 banks still considering their strategies.
The CBN’s recapitalisation programme is expected to reshape Nigeria’s banking sector in the coming years, with stronger banks expected to emerge through mergers, acquisitions, or large-scale fundraising. In this context, FCMB’s proactive steps may not only secure its place among Nigeria’s leading banks but also inspire confidence in the resilience of the sector.
