Fidelity Bank has announced plans to exit all Central Bank of Nigeria (CBN) regulatory forbearance arrangements by the end of the first half of 2025, positioning itself to resume dividend payments for the 2025 financial year.
In a statement issued on Wednesday and signed by Ezinwa Unuigboje, the Company Secretary, the bank confirmed that its current forbearance under the Single Obligor Limit (SOL) relates to two obligors. However, it expressed confidence that these exposures will be brought within CBN limits by June 30, 2025.
The bank also disclosed that forbearance granted on other credit facilities applies to four customers. It stated that “substantial provisions” have already been made and “targeted and comprehensive steps” are being taken to either fully provide for the exposures or return the accounts to performing status by the same June deadline.
Fidelity Bank reiterated its commitment to full regulatory compliance, including adherence to the CBN’s recent directive on forbearance, aimed at enhancing capital strength, financial resilience, and responsible lending in the banking sector.
To further boost its capital base, the bank successfully raised ₦273 billion through an oversubscribed Public Offer and Rights Issue, with subscription rates of 237.92 per cent and 137.73 per cent respectively.
In line with the CBN’s minimum capital requirement of ₦500 billion for banks with international authorization, Fidelity plans to raise an additional ₦200 billion via Private Placement in the 2025 financial year. According to the bank, both CBN and shareholder approvals have been secured, while other regulatory approvals are being processed.
Fidelity Bank assured shareholders that it expects to fully exit all CBN forbearance arrangements – both Single Obligor Limit and credit-related – within the stipulated timeframe. This, it said, will put it in a strong position to meet all requirements for paying dividends for the 2025 financial year and beyond.
Earlier this year, the CBN directed banks under regulatory forbearance to suspend dividend payouts, defer executive bonuses, and halt foreign investments. The move is part of the apex bank’s broader strategy to strengthen capital buffers, ensure healthier balance sheets, and promote stability within the banking sector.
The directive primarily targets banks facing credit-related stress or those in breach of single obligor limits.
