Fidelity Bank says it will meet CBN’s regulatory forbearance deadline by H1 2025 as it strengthens capital base and eyes full dividend eligibility

Fidelity Bank to exit forbearance by the first half of 2025, becoming the latest lender to commit to meeting the Central Bank of Nigeria’s (CBN) regulatory timeline.

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This assurance follows the apex bank’s June 13 directive barring banks with unresolved forbearance exposure from paying dividends or investing in foreign subsidiaries.

In a statement filed with the Nigerian Exchange on Wednesday night, Fidelity Bank disclosed that its exposure under the Single Obligor Limit (SOL) forbearance affects two obligors.

The bank also confirmed that its credit forbearance status covers only four customers.

“The Bank’s exposure under the SOL forbearance relates to two obligors. We are confident that this exposure will be brought within the applicable regulatory limit in H1 2025,” the lender said.

In addressing the broader forbearance challenge, Fidelity Bank noted that it had already made substantial provisions and is executing strategic actions to return the affected accounts to performing status or fully provision them by June 30, 2025.

The bank affirmed its preparedness to exit all CBN forbearance arrangements—both SOL and credit-related—by the stipulated date.

With this, Fidelity Bank hopes to position itself for dividend payments to shareholders in the current financial year.

Fidelity Bank’s announcement aligns with similar disclosures from Zenith Bank, Access Holdings, and FCMB Group, which have all expressed readiness to comply with the CBN’s regulatory directive.

In preparation for the 2026 recapitalisation deadline set by the CBN, Fidelity Bank has made significant progress. It recently raised N273 billion through an oversubscribed Public Offer and Rights Issue.

The offers were oversubscribed by 237.92 per cent and 137.73 per cent, respectively.

To meet the new minimum capital requirement of N500 billion for banks with international authorisation, Fidelity Bank also plans to raise an additional N200 billion through a Private Placement this year.

The bank has already received approvals from its shareholders and the financial regulator, with other necessary consents underway to complete the process in 2025.

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Fidelity Bank’s robust response to regulatory challenges and proactive capital mobilisation underlines its strategic positioning in the Nigerian financial services sector as it prepares for the next phase of banking reforms.