Fidelity Bank PLC has launched a rights issue, offering 10 billion ordinary shares of 50 kobo each at N9.75 per share and an additional 3.2 billion ordinary shares of 50 kobo each at N9.25 per share.

This strategic move is aimed at attracting discerning investors looking to grow and preserve wealth for future generations.

The bank’s impressive performance over the past three years underscores the potential of this investment.

Fidelity Bank’s share price has surged from N2.55 in December 2021 to N10.85 in December 2023, representing over 290% gain.

During this period, the bank’s stock outperformed the All Share Index four times and the Banking Index twice, reflecting its robust financial health and investor confidence.

The rights issue presents a compelling opportunity for investors to capitalize on Fidelity Bank’s growth trajectory. Shares are available for purchase in units of 1,000 at the rate of N9.75 per unit.

For instance, 1,000 units will cost N9,750, 10,000 units will cost N97,500, and 100,000 units will cost N975,000.

Interested investors are required to fill out the attached public offer form and make payment to the designated account:

• Account Number: 9160000030
• Account Name: Fidelity Bank Public Offer/Rights Issue
• Branch: Corporate Branch, Head Office

The completed form, along with proof of payment, should be submitted to Fidelity Bank for processing.

This rights issue is not only a testament to Fidelity Bank’s commitment to expanding its capital base but also an invitation to investors to be part of its continued success.

The bank’s strong performance metrics and the favorable terms of this offer make it an attractive option for those looking to enhance their investment portfolios.

For more information and to participate in this offer, investors are encouraged to contact Fidelity Bank directly.

Nigerian Deposit Money Banks borrowed N5.38 trillion from the Central Bank of Nigeria (CBN) in the first five days of July 2024.

This was a 245 percent increase from the N1.56 trillion borrowed in the same period in June 2024 and a 202 percent rise from the N1.78 trillion borrowed in the first week of July 2023, according to data released by the CBN.

The surge in borrowing was facilitated through the Standing Lending Facility (SLF), a mechanism that allows the central bank to provide liquidity to commercial banks.

Analysts suggest that this spike indicates short-term liquidity shortages within the banking sector, necessitating borrowing to meet immediate obligations, such as covering withdrawals or funding loans.

“We are currently experiencing an illusion of money. In absolute terms, the amount appears lower,” said Ayokunle Olubunmi, head of financial institutions ratings at Agusto Consulting.

Olubunmi explained that while the figures seem substantial, converting them to dollars and comparing their value to three years ago reveals a significant decline.

The dramatic increase in borrowing coincides with the CBN’s recent monetary policy adjustments.

In May 2024, the CBN raised its benchmark interest rate, the Monetary Policy Rate (MPR), by 750 basis points to 26.25 percent from 18.75 percent in July 2023.

This move was aimed at controlling inflation, which stood at 33.95 percent as of May 2024.

Also, the CBN has issued over N1.5 trillion in Open Market Operation (OMO) bills since Olayemi Cardoso assumed office as governor, in an effort to manage inflation and support the naira.

The liquidity tightening by the CBN has driven banks to the SLF window. Alatise Yusuf, chief investment officer at Cowry Asset Management, noted that banks see the CBN as their lender of last resort, especially in a high-interest-rate environment.

“On Thursday, we saw the Overnight NIBOR at 32.4 percent, indicating that system liquidity is thinning while lending rates are trending upward,” he said.

Yusuf added that the CBN’s actions aim to mop up excess liquidity, leading to a reduction in the total banknotes in circulation.

“Banks’ treasuries are drying up due to investors reclassifying their assets because of high rates. So, banks need to shore up with CBN as the lender of last resort.”

In February 2024, the CBN raised the Cash Reserve Ratio (CRR) of banks from 32.5 percent to 45 percent.

In March 2024, it adjusted the CRR for merchant banks from 10 percent to 14 percent, further tightening liquidity.

Ayodele Akinwunmi, senior relationship manager at Corporate Banking Group, FSDH Merchant Bank, explained that borrowing from the CBN is a standard practice globally.

“When banks need to cover short positions, they can turn to the interbank market or borrow from the central bank. This lending is always secured and typically short-term to cover immediate needs.”

In contrast to the surge in borrowing, commercial banks’ deposits with the CBN under the Standing Deposit Facility (SDF) dropped to N172.17 billion in the first week of July 2024, compared to N232.18 billion in the same period in 2023.

This decrease follows the CBN’s decision last year to lift the N2 billion daily limit on funds placed at the SDF window, resulting in increased net deposits from banks over the past year.

The Nigerian government generated N78.95 billion from the N50 levy imposed on electronic bank transfers in the first five months of 2024.

This revenue collection revealed the importance of the Electronic Money Transfer Levy (EMTL) introduced under the Finance Act 2020.

The EMTL, established to tap into the burgeoning sector of electronic funds transfers, applies a singular and one-off charge of N50 on electronic receipts or transfers of funds amounting to N10,000 and above.

This levy is imposed on any deposit money bank or financial institution account.

The National Bureau of Statistics, in its Federal Allocation Accounts Committee report, disclosed that the 36 state governments received a combined allocation of N31.84 billion from January to April 2024.

This distribution forms part of the government’s broader revenue-sharing framework, which allocates 50% of EMTL proceeds to state governments, 35% to local governments, and 15% to the Federal Government.

The monthly breakdown of revenue collected from the EMTL revealed consistent inflows: N15.9 billion in January, N15.15 billion in February, N14.75 billion in March, N18 billion in April, and N15.14 billion in May.

The states benefited significantly from this revenue stream. From January to April, the federal allocation indicated that N8.93 billion was shared in January, N7.96 billion in February, N7.58 billion in March, and N7.38 billion in April.

Among the states, Anambra received the highest allocation with N1.03 billion, followed by Bauchi with N818.98 million, and Akwa-Ibom with N796.81 million.

The 2023–2025 Medium Term Expenditure Framework and Fiscal Strategy Paper had projected government earnings from EMTL at N137.03 billion in 2023, N157.59 billion in 2024, and N189.11 billion in 2025.

This year’s collections suggest the government is on track to meet, if not exceed, its 2024 projection.

In addition to direct government revenue, digital banking channels have shown robust growth, generating approximately N438 billion for 10 financial institutions in 2023. This represents a 37.54% increase from N318.64 billion in the previous year.

E-business income, encompassing revenue from electronic channels, card products, and related services, has continued to rise, driven by stable platforms and increased consumer adoption.

Lilian Phido, Head of Corporate Communications at the Nigeria Inter-Bank Settlement System (NIBSS), highlighted the growing acceptance and reliability of electronic payment channels.

“With stability, these components have grown. More and more people are moving towards these platforms,” she commented in an earlier interview on Sunday.

The consistent revenue from the EMTL not only reflects the success of the Finance Act 2020 in capturing the economic potential of digital transactions but also underscores the crucial role of electronic banking in the country’s financial ecosystem.