Fidelity Bank Plc (“the Bank”) refers to the recent circular issued by the Central Bank of Nigeria “CBN” (Reference No. BSD/DIR/CON/LAB/018/008) concerning regulatory forbearance on Single
Obligor Limit (SOL) and other credit facilities and wishes to provide the clarifications below to its esteemed shareholders, NGX Regulation Limited (NGX RegCo), and other stakeholders:

(a) As a responsible financial organization, Fidelity Bank Plc remains committed to ensuring compliance with regulatory policies and directives, including the CBN circular on forbearance which is aimed at strengthening capital buffers and enhancing financial prudence within the banking industry.

(b) In terms of Capital, the Bank successfully raised ₦273 billion through a recent Public Offer and Rights Issue which were oversubscribed by 237.92% and 137.73% respectively and intends to raise the additional sum of ₦200 billion through a Private Placement in 2025FY, to achieve the
new minimum regulatory capital requirement of ₦500 billion for banks with international
authorisation. The CBN and Shareholders’ approval have been obtained for the Private
Placement, while other regulatory approvals are being processed to ensure completion in 2025.

(c) 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.

(d) With respect to 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 full provisioning or return of the accounts to performing status by June 30, 2025.
Thus, the Bank expects to exit all CBN forbearance arrangements (SOL/Credit) and remains in a strong position to meet the prevailing requirements to enable it to pay dividends for the current financial year and subsequently.

AXA Mansard Investments Limited, a leading asset management company committed to shaping a financially empowered Nigeria, is proud to announce its sponsorship of the upcoming ‘The Mum Fund’ Event, an intimate and impactful gathering designed to help Nigerian mothers take charge of their financial futures with clarity and confidence.

‘The Mum Fund’ Event will take place on June 7, 2025, bringing together a vibrant community of contemporary mums interested in financial empowerment. Designed to foster community, spark mindset shifts, and provide practical financial tools, ‘The Mum Fund’ Event will feature candid conversations, expert guidance, and the support of like-minded women on a journey to build generational wealth.

“Financial education is not a luxury, it’s a necessity, especially for women who manage the heart of the home and influence generations,” said Adebola Surakat, Chief Marketing Officer at AXA Mansard. “Our decision to sponsor this event reflects our commitment to bridge the financial literacy gap and provide tools that empower everyday Nigerians to make sound financial decisions.”

Surakat furthered; “We are truly excited about the transformative potential of ‘The Mum Fund’ event. We are convinced that bringing mothers together in a safe, empowering space, environment can spark meaningful change, not just in how women manage money, but in how our society builds and sustain prosperity. The ripple effects of this kind of empowerment are far-reaching, and we’re proud to be a part of it.”
As a long-standing advocate of financial literacy, AXA Mansard Investments continues to invest in platforms and partnerships that help the Nigerian, particularly women, achieve financial well-being and long-term wealth creation.

The Mum Fund is organised by MoneyStart, an award-winning personal finance education and coaching platform, and Swaddle, an AI-powered digital companion built to support mothers by helping them stay organized, find local trusted recommendations and connect with other mothers.

MAN in a press statement signed by
Segun Ajayi-Kadir mni, Director General, it deeply worried about the continued decision of the Central Bank of Nigeria (CBN) to maintain the Monetary Policy Rate (MPR) at 27.5 percent since November 2024, despite a global wave of interest rate reductions aimed at revitalizing economic productivity and combating stagflation.

The statement read, “we are perturbed that when most progressive economies are charting a course toward industrial recovery and macroeconomic stability, Nigeria’s monetary stance tends to lead us in a different direction. Over the last quarter, countries such as members of the Euro Area, the United Kingdom, Denmark, Australia, China, India, Thailand and Egypt, have implemented interest rate cuts to bolster economic growth and support productive sectors. Yet, our rigidity continues to create unintended consequences that may deepen the parlous performance of the productive sector.

“A nation cannot industrialize on the back of prohibitively expensive credit. With the benchmark interest rate held at 27.5 percent, Nigeria has become the 6th most expensive country to source credit as local manufacturers grapple with an average lending rate of over 37 percent.

“This policy posture is not only inflationary, but is suffocating the capacity of the manufacturing sector. Compounded by other limiting factors, our members—small, medium and even large-scale—are finding it increasingly difficult to stay afloat, expand production lines, or even meet basic operational costs. When credit is priced highly, production declines and the nation “imports poverty”.

MAN said its concerns go beyond the debilitating impact on the association’s members business, adding the the “Nigeria First Policy”, which seeks to strengthen local industry and reduce import dependence, may be under severe threat.
It said at the heart of successful implementation of ‘Nigeria First Policy’ lies access to affordable financing to boost capacity utilization. “Unfortunately, the current interest rate regime constrains finance costs for our members, surging by over 44 percent from N1.43 trillion in 2023 to N2.06 trillion in 2024 and rising”.

Further the statement said,”The above represents a sharp increase that has directly depressed productivity and led to underutilization of industrial capacity. The high cost of credit has not only diminished the flow of investments into the manufacturing sector but has also dulled the return on existing investments, with Small and Medium Industries hit the hardest.

“Confidence in the industrial outlook has waned, as evident in the dip in the Manufacturers CEO’s Confidence Index from 50.7 points to 48.3 points. This mirrors the growing anxiety of our manufacturers.

“A nation that woos foreign portfolio investors at the expense of its real sector may unwittingly be aspiring to build prosperity on the back of volatility. We are disturbed by the implicit prioritization of short-term foreign capital inflows over the long-term health of domestic industries.

“While maintaining a high interest rate of 27.5 percent may temporarily attract speculative foreign portfolio investors, it is doing so at the expense of Nigeria’s manufacturing base, which is now choked by unsustainable borrowing costs.

“What is evident now is the widening profitability of the banking sector, buoyed by elevated interest margins, while manufacturers contend with shrinking margins, rising debts and declining productivity.

“This is an economic paradox that must be urgently addressed. The current monetary policy trajectory risks turning banks into vaults of idle wealth, while the real economy—where jobs are created and value is added—faces suffocation. A society that rewards intermediaries over producers invites long-term decline. Access to affordable credit is the oxygen that sustains industrial growth and no economy has ever grown by starving its manufacturers of oxygen.

“The Manufacturers Association of Nigeria is ever committed to collaborating with the Government and all stakeholders to achieve macroeconomic stability. We therefore earnestly beseech the CBN to urgently reconsider its monetary stance. Moreover, recent disinflationary trends provide justification for the CBN to cut rates. Real interest rates have improved, already giving financial investors higher inflation-adjusted returns.

Therefore, maintaining a high nominal interest rate under current inflation conditions is neither necessary nor justifiable, and will only prolong the pain for manufacturers and consumers alike”, the statement noted.
In light of the above,

MAN calls on the CBN to: – Cut the benchmark interest rate significantly to reflect current realities and ease the credit burden on manufacturers.

– Deploy moral suasion and policy incentives for commercial banks to facilitate single-digit, concessionary interest rates to the manufacturing sector.

– Facilitate the approval of the N1 trillion earmarked for manufacturers under the Stabilization Plan to support industries struggling under current financial pressures.
– Facilitate significant increase in the capital base of the Bank of Industry (BOI) to scale up its capacity to meet the sector’s growing credit demands.
– Settle the outstanding $2.4 billion Forex Forward Contracts to restore manufacturers’ confidence and end the unprecedented decapitation of the financial viability of the affected industries.

MAN said this will also improve access to non-locally available raw materials. – Facilitate a policy direction to peg the customs duty exchange rate for importing industrial inputs, especially raw materials and machinery, to prevent further inflationary pass-through effect.
Industrial confidence is a fragile currency and once broken, it takes time to rebuild. Nigeria cannot afford to lose its manufacturing momentum at a time when the world is repositioning for the next wave of industrial transformation.
The commendable reform measures of this administration may not be helped by the persistent high cost and constrained access to funds. The current monetary policy is not only undermining manufacturers’ confidence but also jeopardizing national economic resilience.
We urge the Central Bank to act decisively and in synergy with the fiscal authority to ensure that Nigeria’s manufacturing sector does not sink deeper into stagnation.