Fidelity Bank has announced its intention to fully exit the Central Bank of Nigeria’s (CBN) forbearance programs by the end of the first half of 2025, signaling its commitment to regulatory compliance and paving the way for dividend distributions to shareholders in the 2025 financial year.
In a statement released on Wednesday, the bank disclosed that its Single Obligor Limit (SOL) forbearance exposure involves two obligors. The bank expressed confidence that these exposures would achieve full regulatory compliance within the stated timeframe.
Company Secretary, Ezinwa Unuigboje, reaffirmed Fidelity Bank’s dedication to complying with all regulatory policies, including recent CBN forbearance directives aimed at strengthening capital buffers, enhancing financial resilience, and promoting responsible lending practices across the industry.
Regarding forbearance on additional credit facilities, the bank clarified that four customers are affected. It further stated that proactive measures have been taken to restore these accounts to performing status by June 30, 2025.
“For the forbearance granted on other credit facilities, the Bank confirms that this applies to four customers. We have proactively made substantial provisions on these facilities and have taken targeted and comprehensive steps to ensure either full provisioning or a return of the accounts to performing status by June 30, 2025,” the statement read.
Fidelity Bank also highlighted its successful capital raise of N273 billion through a Public Offer and Rights Issue, which recorded oversubscription rates of 237.92% and 137.73%, respectively.
To meet the CBN’s new minimum capital requirement of N500 billion for internationally authorized banks, the bank plans to raise an additional N200 billion through a Private Placement during the 2025 financial year.
The bank confirmed that it has received both CBN and shareholder approvals for the Private Placement, with remaining regulatory approvals currently under review to ensure timely execution.
Reinforcing its commitment to financial stability and shareholder value, Fidelity Bank assured investors of its strong positioning:
“It expects to exit all CBN forbearance arrangements (SOL/Credit) and remains in a strong position to meet the prevailing requirements, enabling it to pay dividends for the current financial year and beyond.”
The CBN had previously issued directives mandating banks under regulatory forbearance to suspend dividend payments, defer executive bonuses, and pause foreign investments. These measures are part of a broader strategy by the CBN to bolster capital adequacy, enhance balance sheet resilience, and ensure prudent capital retention across the banking sector. forbearance due to credit exposure issues and Single Obligor Limit violations, circumstances that suggest potential financial stress within affected institutions.
