Nigerian Stock Market Rebounds as Access, FCMB, and Fidelity Bank Assure CBN Compliance
The Nigerian stock market saw a significant rebound after major banks including Access Holdings, FCMB Group, and Fidelity Bank reassured investors of their commitment to comply with the Central Bank of Nigeria’s (CBN) prudential directives. Earlier in the week, banking stocks had sharply declined following news of the CBN’s return to stricter monetary policy and enforcement of capital and regulatory guidelines. However, a wave of clarifications and confidence-building statements from the banks restored market optimism, sparking a rally in key banking stocks such as Zenith Bank and UBA.
At the close of trading, the stock prices of several tier-one banks recorded notable gains. Zenith Bank rose by 5.32% to N48.50, UBA surged 5.59% to N34.00, while Access Holdings climbed 4.49% to N20.95. GTCO, Stanbic IBTC, and Fidelity Bank also saw modest increases, reflecting revived investor sentiment. This recovery followed disclosures from the banks regarding their strategic steps toward full compliance with CBN’s regulatory forbearance exit timeline, particularly targeting the June 30, 2025 deadline.
Access Holdings revealed that its banking subsidiary, Access Bank, has already surpassed the CBN’s N500 billion capital requirement for banks with international authorization. The bank also confirmed adherence to the Single Obligor Limit (SOL) and pledged full regulatory compliance by June 2025. FCMB disclosed a significant 60% reduction in its forbearance-exposed loans, emphasizing ongoing restructuring and capital improvement efforts, including converting a major loan to equity to meet SOL requirements.
Fidelity Bank highlighted its proactive capital raising strategy, including an oversubscribed N273 billion offer and an upcoming N200 billion private placement to meet the CBN’s capital requirement. The bank reassured investors of its progress in reducing SOL-exposed obligations and full provisioning for affected credit facilities, also targeting compliance by the first half of 2025. These moves collectively point to industry-wide alignment with the apex bank’s policy direction.
The coordinated messaging from top banks and visible progress in resolving regulatory gaps have helped stabilize the financial markets and restore confidence among investors. The stock market rebound underscores the importance of transparency and timely regulatory compliance in bolstering investor trust. Analysts expect continued improvement in market performance as banks meet their capital and forbearance milestones in the coming months.
Source: This day