January 19, (THEWILL) — First City Monument Bank (FCMB) is pushing towards the N500 billion threshold meant for international banking licences which it aims to achieve within the March 31, 2026 recapitalisation deadline announced by the Central Bank of Nigeria (CBN).
The recapitalisation policy, announced in March 2024, introduced a three-tier licensing framework of regional, national and international banks. Under the rules, national banks must maintain a minimum paid-up capital of N200 billion, while international banks must hold at least N500 billion.
The reforms are designed to strengthen financial institutions, enhance resilience against economic shocks and position banks to finance large-scale projects that can support Nigeria’s long-term growth.
FCMB crossed the national threshold in 2024 after raising N147.5 billion in an oversubscribed public offer, which was reportedly taken up by more than 42,000 investors and exceeded its target by about 33 per cent.
The successful exercise pushed its banking subsidiary above the N200 billion requirement, securing its national banking licence well ahead of the regulatory deadline and easing immediate compliance pressure.
Since then, the group has continued to build towards international status. In October 2025, FCMB launched a second capital-raising exercise of about N160 billion, while its shareholders approved a broader N400 billion capital mandate in December 2025, giving the group flexibility to combine public offers, private placements and strategic asset sales.
Several large lenders chose speed over sequencing. Access Bank, Zenith Bank, Guaranty Trust Bank, United Bank for Africa (UBA), Fidelity Bank and First Bank of Nigeria have announced capital transactions that lifted their paid-up capital above the N500 billion international threshold, often through sizeable rights issues, private placements or a mix of equity issuance and asset divestments.
While attention has largely focused on banks that have already crossed the N500 billion capital requirement for international banking licences, a growing number of lenders are pursuing phased strategies, first securing national licences before building toward the higher international tier. Among them is FCMB Group Plc, whose approach highlights the strategic split emerging across the industry.
Market analysts caution against interpreting phased capital raising as delay. “The regulator allows banks until 2026,” said a Lagos-based banking analyst. “What matters is whether capital is fully paid up and approved by then, not the sequence in which it is raised.”
A top banking executive said that FCMB, Wema, Standard Chartered and Citibank have officially secured their national licences, with FCMB “in the final sprint” to reach the N500 billion mark required for an international banking licence.
Some stakeholders expressed firm optimism about FCMB bracing the tape to hit the N500 billion target for international banking licences.
An investment expert and chairman of the Trusted Shareholders’ Association, Mukhtar Mukhtar, said FCMB has the capacity to achieve the N500 billion recapitalisation target in the first quarter of 2026. He noted that FCMB has the culture of meeting targets and has built a strong foundation that earned it continued investor confidence.
“Although the Company Secretary has not been inviting my group to their activities of recent, my knowledge of FCMB is that of a bank with unwavering commitment towards achieving worthy targets. From the days of the founder, late Otunba Michael Balogun till date, the management has remained firm in their culture of corporate excellence. We the investors have great confidence in the bank,” Mukhtar told THEWILL in a telephone chat on Sunday.
Mr Boniface Okezie, National President, Progressive Shareholders Association, also expressed strong optimism about FCMB achieving the international licencing bid.
“They are on top of the matter, and I have no doubt about their ability to achieve the N500 billion target. During the Charles Soludo banking consolidation programme, FCMB did not fail to achieve the required minimum capital base and since then, the bank has continued on a growth trajectory that impressed investors.
“I am aware that FCMB raised over N140 and another N160 billion in its capital raising within the past two years – a process that started even before the announcement of the new recapitalisation threshold. These are important milestones.
“However, I would suggest to the CBN to reconsider the March 2026 deadline by extending the deadline with another six months. To raise N500 billion within two years in a challenging economy is not an easy thing,” Okezie said in a telephone conversation over the weekend.
The recapitalisation programme has wider implications for the sector. It has already prompted mergers, asset sales and licence downgrades, particularly among smaller banks prioritising sustainability over expansion. Islamic and non-interest banks have largely met their respective requirements, underscoring resilience in niche segments.
Macroeconomic conditions add another layer of complexity. High inflation, currency volatility and tight global funding conditions make equity issuance more challenging. In this environment, phased recapitalisation can help manage valuation risk and investor sentiment, even if it attracts closer scrutiny.
As the deadline approaches, investor focus is shifting from announcements to confirmed inflows and regulatory approvals. Nigeria’s banking reset is no longer about intent, but about execution.
For FCMB and others pursuing phased strategies, the coming months will determine whether they join the ranks of international lenders or consolidate their position as strong national champions in a reshaped banking landscape.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
