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Why investors will buy Fidelity Banks offers, by capital market stakeholders

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12 months ago

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Why investors will buy Fidelity Banks offers, by capital market stakeholders

 

 

Fidelity Bank Plc started its N127.1 billion combined rights and public offers to a rousing support from the investing public as key capital market stakeholders recalled the symbolic importance of Fidelity Banks impressive growths and investor-friendly disposition over the years.

From the Nigerian Exchange (NGX) to stockbrokers, investors and customers; the N127.1 billion combined rights and public offer received unreserved recommendations, with industry thought leaders citing the performance of Fidelity Bank in its core banking operations and as a quoted company at the stock market.

They said Fidelity Banks N127.1 billion combined rights and public offer was the right way for the nations banking recapitalisation exercise to start as the bank, which has the highest corporate governance rating and an average annual capital gain of more than 100 per cent at the stock market, has strong appeal to the investing public.

Fidelity Bank is offering a rights issue of 3.2 billion ordinary shares of 50 kobo each at N9.25 per share. The bank is also simultaneously offering 10 billion ordinary shares of 50 kobo each to the general investing public at N9.75 per share.

The acceptance and application lists for the rights issue and public offer, which opened on Thursday, June 20, 2024, are scheduled to close on Monday, July 29, 2024. The rights issue has been pre-allotted on the basis of one new ordinary share for every 10 existing ordinary shares held as at the close of business on Friday, January 05, 2024.

The Doyen of Stockbrokers, the oldest practicing stockbroker, Alhaji Rasheed Yussuff, said Fidelity Bank has good records going for it with its history of impressive growth and profitability and dividend payments.

According to him, the bank is known to the market as a good investment, with evident records of impressive returns and corporate responsibility.

Yussuff, who was already a leading stockbroker and managing director of Trust Yields Securities Limited in 2004-2005 when Fidelity Bank launched its initial public offering (IPO) and listed its shares at the stock market, said the bank has been hitting all positive records that should encourage investors to buy more into it.

Referencing the banks impressive returns, Yussuff, who has more than five decades in the capital market and was principal dealing clerk for ICON Limited/ICON Stockbrokers in 1976, particularly noted that Fidelity Bank has been paying good dividends.

Chairman, Association of Securities Dealing Houses of Nigeria (ASHON), Mr Sam Onukwue, who recalled the founding days of Fidelity Bank in 1987, said he had watched Fidelity Bank sustained commendable growth trajectory over the years.

He said the bank has shown exceptional growth and resilience, rising from being a private merchant in 1987 to becoming one of the largest, publicly quoted commercial banks in Nigeria. Fidelity Bank is one of the seven Nigerian banks with international banking licences.

Onukwue, who is also managing director of Mega Equities Limited, said Fidelity Banks history of performance underlines the strength of its management, noting that the bank has proven to be able to keep investors trust.

Chairman, Nigerian Exchange (NGX), Mr. Ahonsi Unuigbe said the combined offer marked a pivotal moment for the bank and the financial services sector.

This is a testament to Fidelity Banks unwavering commitment to strengthening its own capital base and ensuring sustainable growth through amazing roles played by all of the professional parties to this transaction, Unuigbe, an investment banker and former director at Standard Bank, said.

He said the new banking recapitalisation is aimed at bolstering the resilience and stability of the nations financial institutions.

According to him, the ongoing recapitalisation has set robust minimum capital requirements that will ensure Nigerian banks are not only more solvent, but also capable of supporting the growth and development of the economy.

Acting Chief Executive Officer, Nigerian Exchange (NGX), Mr. Jude Chiemeka, commended Fidelity Bank for its performance and willingness to avail the investing public of every relevant information.

He assured that the NGX remains committed to supporting companies like Fidelity Bank in its quests to deepen the capital markets and fostering an environment conducive to sustainable growth and innovation.

Founder, KAM Holding, Dr Kamoru Yusuf, said Fidelity Bank has shown to be an exceptional bank with focus on the development of Nigerian economy and companies.

He said investing in Fidelity Bank will be an investment in the growth of Nigerian economy and companies like KAM Holding, the nations largest wholly indigenous metal and steel production company.

Yusuf, whose group has metamorphosed into a global business conglomerate operating in three countries across two continents, confirmed that KAM Holding has benefited immensely from financial supports from Fidelity Bank.

Yusuf, who was physically present at a session at the NGX to present facts behind the offer to the investing public, underlined the relationship between increased capital for a business-focussed bank like Fidelity Bank and the overall development of the Nigerian economy.

Addressing the investing public at the NGX, Managing Director, Fidelity Bank Plc, Dr Nneka Onyeali-Ikpe, reiterated the commitment of the bank to delivering impressive returns to shareholders and supporting the growth of the Nigerian economy.

She explained that the new capital raising by Fidelity Bank was driven by its proactive business expansion plan having secured shareholders approval to raise new equity funds as early as August 2023. The Central Bank of Nigeria (CBN)s directive on new minimum capital was released in March 2024.

The offer will increase our capacity to support our customers and their businesses. In summary, this capital raise will help our customers to grow, their businesses to thrive, and their economy to prosper, Onyeali-Ikpe said.

She assured that with its groundswell of supports from enthusiastic shareholders, customers and stakeholders, the bank is on course to achieving the N500 billion new minimum capital base, which will clearly confirm the bank, beyond any doubt, as one of the biggest banks in Nigeria.

Onyeali-Ikpe noted that being the first bank to launch offer out of the many banks in Nigeria after the CBN directive, Fidelity Bank has shown again to be a pace-setter.

According to her, Fidelity Bank seeks the CBN recapitalization directive as a significant opportunity for a stronger and more resilient banking industry.

We have embraced the challenge as a catalyst to propel us, towards a long-term vision of becoming a market leader across every product that we offer and segment that we sell, not just in Nigeria, but as an international bank, Onyeali-Ikpe said.

She said the proceeds from the N127.10 billion capital raising exercise would be instrumental in achieving its strategic growth plan.

She highlighted that the funds, firstly, would be deployed to drive, business growth and regional expansion.

We will strategically expand our footprints within and outside Nigeria to serve as a broader customer base and to unlock new market opportunities.

Secondly, we will have what we call technological transformation. We are committed to leveraging proprietary technology to improve operational efficiency and deliver exceptional customer service.

Thirdly, we intend to diversify and grow. By investing in information technology (IT) infrastructure and product distribution channels, we will aim to diversify our earnings base through digitalization and business expansion, Onyeali-Ikpe said.

She said the management recognised the importance of investors and are committed to delivering value to them as well.
Our track record of accelerated growth and consistent dividend payment is a testament to this, Onyeali-Ikpe said.

A recent review had shown that Fidelity Bank outperformed all major market indices for measuring returns at the Nigerian stock market, with the banks average annual return over the past five years twice the average return by the overall market and almost four times of average return in the banking sector.

A review of official trading reports at the Nigerian stock market showed that investors in Fidelity Bank have earned more than 507 per cent in capital gains over the past five years, between May 31, 2019 and May 31, 2024
Fidelity Banks share price rose by 507.14 per cent over the period, representing average annual capital gain of 101.43 per cent. This significantly exceeds all other major return benchmarks, including the banking sector.

With 507 per cent capital gain in five years and average annual gain of more than 100 per cent, the return analysis implies that investment in Fidelity Bank is more attractive than other class of assets, including fixed-income securities such as government and corporate bonds; real estate investment and mutual funds among others.

These returns underscore Fidelity Banks immense value as a stock for all times, helping investors to hedge against inflation while preserving significant long-term value.

The high divisible nature of shares investment and high free float of Fidelity Bank, which makes the banks shares easily available, underline the bank as a most attractive investment option for all cadres of investors- small, medium and high networth; retail and institutional investors.

The All Share Index (ASI) – the common, value-based index that tracks all share prices at the Nigerian Exchange (NGX), which is widely regarded as Nigerias benchmark for equities market, recorded a five-year return of 219.61 per cent, an average annual return of 43.9 per cent.

Contrary to the significantly above average performance of Fidelity Bank, the NGX Banking Index-which tracks the banking sector, doubled by 120.53 per cent over the five-year period, representing average annual return of 24.11 per cent, more than 77 percentage points below Fidelity Banks average return.

Two other major price indices- the NGX 30 Index and NGX Main Board Index, recorded five-year cumulative return of 185.73 per cent and 265.6 per cent respectively, representing average annual gain of 37.15 per cent and 53.1 per cent respectively.

The NGX 30 Index tracks share prices of the 30 largest companies at the stock market while the NGX Main Board Index represents the largest and most diversified group of listed companies at the stock exchange. Fidelity Bank is quoted on the main board, like most other major banks and companies at the stock market.

The average annual return of 101.43 per cent underlines that Fidelity Bank provides substantial return for investors, even where such investors had borrowed money at the ruling interest rate and the invested fund was adjusted for impact of inflation rate.

Nigerias inflation rate peaked at a high of 33.69 per cent in April 2024 while the Central Bank of Nigeria (CBN)s Monetary Policy Committee (MPC) recently increased the Monetary Policy Rate (MPR), otherwise known as benchmark interest rate, to 26.25 per cent.
Fidelity Banks share price, which closed May 31, 2019 at N1.68 per share, rose successively to N10.20 per share by the end of May 2024.

The ASI had, during the period, rose from its opening index of 31,069.37 points to close weekend at 99,300.38 points. The NGX Banking Index rose from 361.57 points to 797.37 points. The NGX 30 Index, which opened the period at 1,286.68 points, closed the period at 3,676.44 points. The NGX Main Board Index appreciated from 1,267.54 points to close weekend at 4,634.31 points.

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Sahara weekly online is published by First Sahara weekly international. contact [email protected]

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Festus Keyamo has proven that he is a true son of Delta State through Warri Airport – Igosave

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2 days ago

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June 17, 2025

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Festus Keyamo has proven that he is a true son of Delta State through Warri Airport – Igosave

…says the immense roles of the state governor, the Rt. Hon. (Elder) Sheriff Francis Orohwedor Oborevwori (JP) is well appreciated

One of Nigeria’s most prolific and most creative rib crackers, Otaghware Otas Onodjayeke popularly known as Igosave met with the Nigerian Minister of Aviation, Barrister Festus Keyamo to appreciate his great and selfless contributions to Aviation transportation in Delta State After Igosave dragged them to make more flights available for warri and its environs against the single flights they used to have.

In an appreciation message to the Minister, Igosave expressed the feelings of Warri people as regards the airport and how it will go a long way in boosting the economy of Delta State. He also emphasised on the incomparable and unparalleled contributions of His Excellency Rt. Hon. (Elder) Sheriff Francis Orohwedor Oborevwori (JP) .

Igosave was quoted during the meeting to have, on behalf of the entire people of warri and its environs say “a very big thank you to Governor Oborevwori and the Distinguished Honourable Minister of Aviation, Festus Keyamo for listening to the cries of the good people of Warri. Igosave added that the people need more flights to further booster economic activities in Warri and it’s environs. He urged all the people of Warri to show appreciation to this bold step taken by the Honourable Minister to ensure that a modern-day air traveling facility is provided for the people, for their own convenience and for business activities to grow in Delta State.

Igosave delivered a very thought provoking but explanatory message to the Distinguished Minister of Aviation Festus Keyamo, recognising his gallantry input to the Warri nation in particular and Delta State in General.

In his response, Hon. Festus Keyamo appreciated the visit of Igosave and his team and as a bonafide son of Delta state , Keyamo spoke the local dialect, expressing his views on why all hands must be on the desk to develop not only Warri but the entire Niger Delta region.

Hon. Keyamo ascertained that the input of Governor Oborevwori in Delta State. He said, the Governor calls him everyday to ascertain the ministry of Aviation’s input in Delta State and thr modalities to be implemented. Keyamo also expressed that since the 1960s, Warri has not produced any Minister in the aviation sector and this time that God has made it happened, there must be a significant sign of aviation development. The Honourable Minister said this is the first time when a sitting Governor, Minister and senator will combine together foe the development of their state.

 

Keyamo added that illumination lights will be erected at the airport so that the facility will be lightened brightly all nights because for now, there is no conventional light there and which is very important. “As a matter of fact, we are planning to upgrade the airport to international standard and I want to assure you that it’s in the 2025 budget. Our prayer now is that the Federal Government should honour the budget and make this unforgettable dream a reality. One the budget is 80% or 90% funded, of course, the project will be completed by next year. What I used to tell people is that it is not the Federal Government that owns the airport, it was owned by Shell who sold it to a company called Shoreline. All these things we are doing, we are thinking outside the box just for us to develop our region. Meanwhile those companies cannot run the facilities and that is why we need to take over and make it useful for our people.

So it’s not a Federal Government airport, it’s a private airport so it not FAAN that rubs it and not the government. So,like Asaba, Warri Airport is private and not owned by the Federal Government. Thanks.

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The Nigerian Passport Rip-Off: A Symbol of National Disgrace and Diaspora Exploitation

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2 days ago

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June 16, 2025

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The Nigerian Passport Rip-Off: A Symbol of National Disgrace and Diaspora Exploitation

By George Omagbemi Sylvester | Published by SaharaWeeklyNG.com

When former Rivers State Governor and Minister of Transport, Rotimi Amaechi, openly admitted that the Nigerian passport is “almost worthless abroad,” he wasn’t exaggerating. In fact, his words captured the daily humiliation faced by millions of Nigerians across the globe. Despite the glaring decline in its global value, the Nigerian passport remains one of the most expensive in the world. This contradiction (PAYING A PREMIUM PRICE FOR A DOCUMENT THAT INVITES SUSPICION AND REJECTION AT BORDERS) is not just illogical; it’s criminal.

 

Today, in 2025, Nigerians in the diaspora are being bled dry under the pretext of acquiring basic identity documents. The National Identity Number (NIN), originally meant to be a free or affordable civic right, has become a commercial racket. It now costs as high as R1,250 (about ₦110,000) even for a six-year-old child in obtaining a NIN in South Africa. This isn’t just unethical, it’s extortion.

This is a business for someone at others’ pains,” lamented Rika Augusta, a frustrated Nigerian mother in South Africa whose six-year-old daughter was forced to pay the full amount just to be recognised as Nigerian.

For a country ranked 131st out of 139 countries on the Henley Passport Index in terms of travel freedom, the price Nigerians pay for this underperforming passport is nothing short of madness. According to the Nigerian Immigration Service (NIS), the “enhanced e-passport” costs between ₦400,000 to ₦600,000, excluding service charges imposed by third-party agencies such as OIS and other consular fees. These costs triple when processed from abroad.

Benjy Oloye, a Nigerian in South Africa, echoes the frustration of many:
“I captured in January. Since then, it’s been one story after another. Till today, nothing. Is this a passport or a miracle
we’re praying for?”

The bottlenecks and delays are not merely bureaucratic hiccups;
they are deliberate schemes. The outsourcing of biometric capture and passport
issuance to third-party companies like Online Integrated Services (OIS) has become a well-oiled machine of financial exploitation. Nigerians are forced to pay additional “admin” and “service” fees that are neither regulated nor justified.

“OIS service fee: R100.
Consulate admin fee:
R350.
This is an organised
scam,” revealed Bennie, another Nigerian in

South Africa who has meticulously documented every extra cost.

One wonders: How did we get here?

The Politics of Pain and Profit
The answer is simple; GREED. The Nigerian system is deeply infested with a culture of monetising misery. From driver’s licenses to passports and now even the NIN, everything has become a money-making scheme for a few elites at the expense of 220 million Nigerians.

Pastor Israel Angel White, based in Pretoria, aptly described the situation:
“Some guys are making money out of this, no doubt. Greed is in their DNA. It’s awful.”

This systemic extortion is especially cruel for those in the diaspora who have already endured the trauma of leaving their homeland in search of better opportunities. They contribute over $25 billion annually in remittances, yet they are treated as nothing more than ATM machines by the Nigerian government.

“The Nigerian government sees those of us in the diaspora as nothing more than a cash cow,” says a Nigerian professional in Cape Town. “We’re paying premium prices for substandard services and being told to smile while doing it.”

Data Don’t Lie
Let’s take a moment to compare:

United States Passport: $165 (~₦250,000) with visa-free or visa-on-arrival access to over 180 countries.

United Kingdom Passport: £82.50 (~₦130,000) with 190+ countries accessible.

Nigerian Passport: ₦400,000+ with access to barely 46 countries visa-free, mostly in West Africa.

So why does the Nigerian passport cost more than world-leading passports? Why does a six-year-old child have to pay same as an adult to get a NIN? The answer lies not in logistics or technology, but in intentional extortion.

A Culture of Silence and Endurance
What’s perhaps more disturbing is how this exploitation has been normalised. Nigerians, whether at home or abroad, have become so accustomed to pain and systemic failure that they rarely push back.

“We can’t afford it; it’s a lot of money. But one thing about being Nigerian is that we’ve mastered the art of adapting, even to pain,” said one diaspora student in Durban. “We’ve normalized struggle so much that we don’t even question it anymore.”

But enough is enough. There must be a call for mass mobilisation. Nigerians in the diaspora are more than 17 million strong and their voices can no longer be silenced. Imagine if each of them sent an email or letter demanding reform, that kind of pressure is impossible to ignore.

The Diaspora Must Lead the Charge
The diaspora cannot remain passive observers. We must become vocal actors. Through organised action ie: letters, petitions, lobbying international media and using legal mechanisms in host countries, yes we can expose and dismantle this daylight robbery.

We must ask:

Why is there no price differentiation for children and economically disadvantaged citizens?

Why are there no audit reports on the revenue generated from these services?

Why are third-party companies allowed to fleece Nigerians without regulatory oversight?

Why is the Nigerian passport not getting global upgrade despite its inflated cost?

If answers are not provided, then accountability must be demanded.

A National Shame
This entire mess speaks to the deeper rot in Nigeria’s governance system. A government that cannot deliver something as basic as a passport or identity card is one that has failed fundamentally. It is a betrayal of trust, an insult to every citizen who dreams of a better life under the green-white-green flag.

When identity becomes a luxury, then nationality becomes a prison.

This is not just about passports and NIN. It’s about the dignity of Nigerians. It’s about fighting a system that sees its own people as prey. It’s about saying “No more!” to those who profit from our pain.

Final Thoughts: Nigeria, We Hail Thee?
Indeed, “Nigeria we hail thee” not in reverence, but in disbelief. For how long shall citizens continue to bleed for basic rights? For how long shall diaspora Nigerians, the backbone of our economic survival, be treated as expendable wallets?

The time to act is now.

As long as we remain silent, they will continue to inflate our costs, delay our documents, insult our intelligence and trample on our dignity.

The Nigerian passport saga is not just a national embarrassment, it is a scandal, a theft and a crime against citizenship.

The Nigerian Passport Rip-Off: A Symbol of National Disgrace and Diaspora Exploitation By George Omagbemi Sylvester | Published by SaharaWeeklyNG.com

George Omagbemi Sylvester
Political Analyst, Diaspora Advocate and Contributor to SaharaWeeklyNG.com

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DANGOTE PETROLEUM REFINERY TO BEGIN DISTRIBUTION OF PMS AND DIESEL NATIONWIDE

Published

3 days ago

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June 16, 2025

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…Deploys 4,000 CNG Tankers To Enhance Distribution Network Nationwide*

*…Offer open to Marketers, Petrol Dealers, Manufacturers, Telecoms Firms, Aviation and other large users*

 

Dangote Petroleum Refinery is pleased to announce the commencement of a significant national initiative designed to transform Nigeria’s fuel distribution landscape. Effective 15th of August 2025, the Refinery will begin the distribution of Premium Motor Spirit (PMS) and diesel to marketers, petrol dealers, manufacturers, telecoms firms, aviation, and other large users across the country, with free logistics to boost distribution network.

To ensure smooth take-off of this scheme, Dangote Refinery has invested in the procurement of 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers. This phase of the programme will continue over an extended timeframe. The refinery is also investing in Compressed Natural Gas (CNG) stations, commonly referred to as daughter booster stations, supported by a fleet of over 100 CNG tankers across the country to ensure seamless product distribution.

This strategic programme is part of our broader commitment to eliminating logistics costs, enhancing energy efficiency, promoting sustainability and supporting Nigeria’s economic development. It affirms our dedication to improving the availability and affordability of fuel, in support of broader efforts to strengthen the economy and improve the well-being of all Nigerians.

Under this initiative, all petrol stations purchasing PMS and diesel from the Dangote Petroleum Refinery will benefit from this enhanced logistics support. Key sectors such as manufacturing, telecommunications, and others will also gain from this transformative initiative, as reduced fuel costs will contribute to lower production costs, reduced inflation, and foster economic growth. Players in these key sectors and others can purchase directly from the Dangote Petroleum Refinery.

In addition, the refinery will offer a credit facility to those purchasing a minimum of 500,000 litres—allowing them to obtain an additional 500,000 litres on credit for two weeks, under bank guarantee.

This pioneering effort marks a major milestone in our vision to revolutionise Nigeria’s energy sector. Dangote Refinery is dedicated to ensuring that no place is left behind. Our goal is to provide equitable access to affordable fuel for all Nigerians, regardless of location, making energy more accessible and sustainable for everyone, wherever they may be.

It is expected to revitalise previously inactive petrol stations, thereby driving job creation, stimulating small and medium-sized enterprises (SMEs), increasing government revenue, improving fuel access in rural and underserved communities, and strengthening investor confidence in Nigeria’s downstream petroleum sector.

This initiative is inline with the Renewed Hope Agenda of His Excellency, President Bola Ahmed Tinubu, reflecting our shared commitment to economic progress, stability, and inclusive development. We sincerely thank the Federal Government for its continued support, especially through the Naira-for-Crude scheme, which has helped stabilise fuel supply amid global price volatility. It marks a major revolution in the midstream and downstream sectors and stands as a key example of President Bola Tinubu’s bold and reformative economic policies.

We invite marketers, petrol dealers, manufacturers, telecom companies, and all key stakeholders to embrace this landmark initiative. The registration process, including Know Your Customer (KYC) verification, will take place from 16 June to 15 August, spanning a total of 60 days. For enquiries, please call +234 707 470 2099, +234 707 470 2100, +234 816 961 8390, +234 703 796 8308, +234 812 362 2893. Email: Email: [email protected].

Dangote Petroleum Refinery remains a proud partner in this national journey— a truly Nigerian company of global standards, dedicated to the well-being of all Nigerians.

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