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In this issue

Editorial Focus: Investor Caution Deepens as Banks Push Recapitalisation Plans
Nigeria’s banking recapitalisation drive is entering a critical phase, and its impact on investor sentiment is becoming increasingly pronounced. This week’s sharp 7.27% drop in the NGX Banking Index underscores growing caution as equity raises gather pace and concerns mount over potential short-term dilution of earnings per share.
The subdued activity in the recapitalisation space, despite ongoing regulatory deadlines, reflects uncertainty around how large capital injections will reshape profitability across the sector. FCMB Group’s recently concluded N160 billion public offer—part of its journey toward meeting the CBN’s N500 billion benchmark for international banks—marks a significant milestone. Yet, the market awaits clarity on subscription levels to assess how much balance-sheet strength FCMB has gained.
Standard Chartered Bank Nigeria’s reaffirmation of compliance with the N200 billion national commercial bank requirement offers some reassurance. Still, analysts expect more disclosures from industry players in the coming weeks, as investors weigh the long-term stability promised by recapitalisation against the near-term pressures it continues to impose on bank valuations.