FCMB to Raise Capital Ceiling to N370 Billion at Upcoming EGM
FCMB Group Plc has announced plans to raise its capital ceiling to N370 billion as part of a strategic move to strengthen its financial position and comply with Nigeria’s recapitalization requirements. The proposal will be presented to shareholders at the company’s Extraordinary General Meeting (EGM) scheduled for Monday, December 8, 2025, which will be held virtually.
Why FCMB Is Raising Its Capital Ceiling
FCMB’s decision to increase its authorised share capital from N340 billion to N370 billion is driven by several factors:
1. Compliance with CBN Recapitalization Policy
The Central Bank of Nigeria (CBN) recently mandated higher capital requirements for banks, prompting financial institutions to seek additional funds to meet regulatory standards.
2. Strengthening Financial Capacity
The increased capital will allow FCMB to boost liquidity, expand operations, and support long-term growth across its subsidiaries.
3. Improving Market Competitiveness
With stronger capital, FCMB aims to remain competitive in Nigeria’s evolving financial sector, enabling it to finance larger projects and serve more customers.
How FCMB Plans to Raise the Capital
The company intends to source new funds through multiple channels, including:
- Issuance of ordinary shares
- New bonds or convertible instruments
- Private placements
- Local and international fundraising initiatives
- Acceptance of oversubscriptions from its 2025 public offering
These steps will expand FCMB’s “issued share capital” once approved by shareholders.
Key Resolutions to Be Discussed at the EGM
During the Extraordinary General Meeting, shareholders will vote on:
1. Approval to increase authorised capital to N370 billion
2. Approval to issue new shares or financial instruments for capital raising
3. Acceptance of oversubscriptions from the 2025 capital raise
4. Amendments to FCMB’s Memorandum of Association to reflect the new capital structure
5. Authorization for directors to implement the capital raise as needed
The virtual meeting will ensure that all shareholders across locations can participate.
What This Means for Shareholders
- Potential for Expansion: If successful, FCMB will have more funding to expand banking services, develop new products, and pursue strategic investments.
- Dilution Risk: The issuance of new shares could dilute the ownership percentage of existing shareholders if they do not participate in the capital raise.
- Market Impact: Capital announcements typically influence stock prices and investor sentiment. Shareholders are advised to monitor FCMB’s public communications closely.
Economic Context
Nigeria’s banking industry is currently undergoing major recapitalization due to:
- Persistent inflation
- Naira devaluation
- Increased regulatory requirements
- Tougher competition among banks
- This makes capital strengthening a critical survival and growth strategy.
Conclusion
FCMB’s move to raise its capital base to N370 billion marks a major step in securing its future and positioning itself for growth in a rapidly changing financial environment. The upcoming EGM will determine how quickly and effectively the company proceeds with this plan.
