Opinion
Fidelity Bank: Here’s the perfect opportunity to grab your slice

By Iheanyi Nwachukwu
On Thursday June 20, Nigeria’s 6th largest bank, Fidelity Bank Plc will open its public offer and Rights Issue.
According to an article on the Businessday website and authored by Iheanyi Nwachukwu, the bank is raising a total of up to N127.100billion by way of a Rights Issue to existing shareholders and a Public Offer (the Combined Offer).
Under the Rights Issue, 3.2 billion ordinary shares of 50 kobo each will be offered in the ratio of 1 new ordinary share for every 10 ordinary shares held as of January 5, 2024, at N9.25 per share.
For the Public Offer, 10 billion ordinary shares of 50 kobo each will be offered to the general investing public at N9.75 per share.
The acceptance and application lists for the Rights Issue and Public Offer which will open on Thursday, June 20 will close on Monday July 29, 2024.
The Combined Offer is a part of the bank’s strategy to increase its share capital base in compliance with the revised minimum capital requirements for Nigerian commercial banks introduced by the Central Bank of Nigeria (CBN) on March 28, 2024.
Stanbic IBTC Capital is the Lead Issuing House to the Combined Offer, while the Joint Issuing Houses include Iron Global Markets Limited, Cowry Asset Management Limited, Afrinvest Capital Limited, FSL Securities Limited, Futureview Financial Services Limited, Iroko Capital Market Advisory Limited, Kairos Capital Limited and Planet Capital Limited.
As part of the capital raising process, Fidelity Bank will this same Thursday June 20 at the
Nigerian Exchange Limited (NGX) hold a Facts Behind the Offer presentation.
Overall, the bank expects that the capital raised would support its efforts to drive sustained growth and diversification of its earnings base.
The bank’s shareholders had approved the Rights Issue and Public Offer at the Extra-Ordinary General Meeting held on Friday August 11, 2023.
Nneka Onyeali-Ikpe, Managing Director and Chief Executive Officer, Fidelity Bank Plc said at the Combined Offer signing ceremony that the proceeds will be applied towards investment in IT infrastructure, business and regional expansion, and investment in product distribution channels.
Oladele Sotubo, Chief Executive Office, Stanbic IBTC Capital who commended Fidelity Bank’s management team for their commitment towards executing the Combined Offer also lauded their efforts for being at the forefront of achieving the CBN’s revised minimum capital requirements for Nigerian commercial banks.
Sotubo expressed confidence that the deal would encourage other corporates to tap into the equity capital markets to raise funding to meet their strategic business needs.
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.
David Adonri, Managing Director, HighCap Securities Limited said the price of any stock in the market is a correct reflection of the market value for the stock.
Aruna Kebira, Managing Director, Globalview Capital Limited said that the market price of a stock represents the disposition of the investing public to the stock at a given period, noting that there should be consideration for both the market value and the book value or fundamentals of a stock.
“It could be summarised that the market price of a stock is premised on the psychology of the market, the markets mood as well as market sentiments,” Kebira said.
Sola Oni, Chief Executive Officer, Sofunix Investment and Communications said the stock market shows both the current and future prospects of shares.
“Share price reflects the current value of a company but also reveals the future prospects”, Oni said, noting that investment analysts traditionally combine market price and book values to determine the possible outlook of a stock.
For many independent investment research reports, Fidelity Bank was assigned BUY ticker, a recommendation to investors to consider the potential attractive returns of the bank.
The research reports were based on the historical and current operational performances of the bank as well as the clear-sighted implementation of the bank’s growth plan. The reports also considered the quality of board and management and the general human capital and resources of the bank.
For instance, the investment advisory reports included those of Afrinvest Group, FSDH Capital and CardinalStone among others.
Analysts were unanimous that Fidelity Banks share price could double in the period ahead given professional assessment of top traditional performance parameters including the company’s operational reports, investors preference and projections.
Ranked as one of the best banks in Nigeria, Fidelity Bank is a full-fledged customer commercial bank with over 8.3 million customers serviced across its 251 business offices in Nigeria and the United Kingdom as well as on digital banking channels.
Just recently, African Export-Import Bank (Afreximbank) disbursed $40-million Intra-African Investment Facility to Fidelity Bank Nigeria Plc to support the bank’s acquisition and recapitalisation of Union Bank UK as part of its international expansion programme. Provided in two tranches of $20 million each, the first tranche of the facility enabled Fidelity to part-refinance the acquisition of 100 percent equity stake in Union Bank UK, while the second tranche was used to support its recapitalisation via the injection of additional equity into the acquired bank, as approved by the United Kingdom’s regulator.
With this acquisition, Fidelity Bank is able to birth a new pan-African financial institution capable of providing correspondent banking and offshore banking services to banks in Africa and servicing the banking needs of Africans in the diaspora.
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.
Investors in Fidelity Bank Plc have earned more than 507 percent in capital gains over the past five years, ranking above all other major return benchmarks at the Nigerian stock market and the entire banking sector.
Trading reports at the Nigerian stock market for the five-year period between May 31, 2019 and May 31, 2024 showed that Fidelity Bank outperformed all key indices at the stock market. Fidelity Banks share price rose by 507.14 percent over the period, representing average annual capital gain of 101.43 percent.
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.
With 507 percent capital gain in five years and average annual gain of more than 100 percent, 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.
The high divisible nature of shares investment and high free float of Fidelity Bank, which makes the bank’s shares easily available, underline it as a most attractive investment option for all cadres of investors- small, medium and high networth; retail and institutional investors.
Comparative analysis showed that Fidelity Bank outperformed all other major market indices with the banks average annual return for the period twice the average return by the overall market and almost four times of average return in the banking sector.
Nigeria’s 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.
Opinion
Will APC’s Break Up Begin From Lagos As Primate Ayodele Foretold?

By Ojelabi Cole
The general overseer of INRI, Primate Elijah Ayodele made a statement some weeks ago that the All Progressive Congress (APC) will be destroyed and its destruction will start from Lagos state.
As a political commentator, I found this prophecy or prediction funny and unattainable because if not for anything, Lagos state owns APC and APC owns Lagos. The foundation of APC started from Lagos and its roots will forever be in Lagos.As a matter of fact, by political reasoning, if every state chapter would scatter across the country, APC Lagos will survive because the ultimate leader of the party, President Bola Ahmed Tinubu practically owns Lagos and whatever he says about the party is final.Therefore, it would be politically wrong for Primate Ayodele to say that APC would break and that it will happen from Lagos state.
These were his words“APC will break and it will start from Lagos. The party will be beyond recognition as those holding the party together will decide to let go because the pressure will be too much.”
“There will be another movement coming out from APC and this will start from Lagos state. President Tinubu will lose his grip on the party in Lagos and nationally, it will be a major problem for the president and if care isn’t taken, this will rub off on his chances in 2027.”
These are seriously powerful words that any political observer would not want to joke with. Despite the fact that it doesn’t seem possible that APC will break starting from Lagos state, they are not words that can be thrown away even by APC apologists.
I studied the statements and though I didn’t believe it, I kept it somewhere with a hope that someday, I will make reference to it when the party proves its stability beyond reasonable doubt.
However, I am forced to say that the political development in the state in the past few weeks is threatening the peaceful existence of the party in the state.Especially with the Obasa-Meranda house of assembly fracas, one would begin to wonder if there is actual leadership in Lagos APC because even other states don’t have it as messy as it has happened lately in Lagos state.
The state and party have been in a messy situation since Mudashiru Obasa was suddenly removed as speaker; it’s been meeting upon meeting without any significant progress in the state.To cap it all, Mudashiru Obasa, the impeached speaker, stormed the house of assembly this afternoon and proceeded to the speaker’s office, declaring that he remains speaker of the house of assembly.
At the moment, about 36 lawmakers have been crying foul and calling on the state leaders to speak to them regarding the issue because they are confused.
They accused leaders of keeping quiet and treating them with disrespect with the return of Obasa to the house.
This is very embarrassing and disgraceful because APC, which prides itself as the most united party, especially in Lagos state, is going through all of these.
Is this to say that everything the party knows is oppressing opposition, but when it comes to uniting the party, the leaders are nowhere to be found?With the whole drama unfolding, allegations of betrayal, disloyalty in Tinubu’s APC, will APC truly break from Lagos as Primate Ayodele said?
Opinion
A Sardauna’s path in Kwara By Rafiu Ajakaye

There is a reason Governor Abdulrahman Abdulrazaq, Sardauna of Ilorin, enjoys his solo moves within or outside of the state capital: he, among other things, fears the genuflection and the praise-singing that may get in the way of his primary assignment if everyone is in the know.
That habit is grossly misunderstood, but he is contented with seeing things without the fillers and being able to focus on his work while attracting lesser attention to himself.
Like every human being, he welcomes being accorded his due without the praises that come with the political environment. He scoffs at sycophancy and purposeless exposure. Instead, he encourages constructive criticisms for better governance outcomes.
This attitude explains his disapproval of celebrations on his birthdays as a sitting Governor. He fears that the sudden celebration does not last and there is no basis encouraging it. This is fine, although there is a thin line between telling the story of an individual for posterity and buttering them up for whatever purpose.
Regardless, I am persuaded by Edward Said’s statement that ‘nations themselves are narrations. The power to narrate, or block other narratives from forming and emerging, is very important to culture’.
As he clocked 65 a few hours ago, bookmakers have a lot to document about the seventh democratic Governor of Kwara State whose tenure is synonymous with unmatched rebuilding and modernisation of the capital city Ilorin, rural development, youth and women empowerment, gender inclusion, and countless economic initiatives that have steadily put the people back to productive work.
Apart from his legacy projects, which are unrivalled in the history of the state, he has effected profound psychosocial reforms with his approach to governance, which many consider strange. His style and personal discipline have put government appointees on a leash.
Along with his no-siren movement and the spartan style, his decision to discontinue the everyday gathering and merriment in Government House, a relic of the past years, is a strong message that attention must now be paid to higher productivity.
A party chieftain recently told me: ‘That style appeared painful and distant at the beginning, but it is really reshaping the mindset of our people. Except for a few people, you hardly see any crowd hanging around the party secretariat these days except during important events. It is a good thing. It simply tells our people to do something much more meaningful, rather than loitering around politicians. It is good for everyone as it restores the dignity of the human person, and I hope his successor does the same.’
The Governor is very nostalgic about the Ilorin of his childhood. He strongly believes in restoring sanity to the GRA, especially — devoid of the health-shattering loud disco music in the evenings— and much of what ought to constitute the central business district of the capital city. A story is told of an old couple who complained that their health had deteriorated with some unhealthy practices within the GRA, a narrative that apparently aligns with his sentiment.
This is a reason he feels that the Kwara Hotel, a fit-for-purpose relaxation facility outside of residentials, must regain its status along with other well-located premium hospitality facilities in the state. This is a critical public health issue, as it is about appropriate land use and sustainable living.
His reforms are not without its critics. Yet true leaders, once convinced of the genuineness of their actions, should not fear being heckled. The sense of pride and the excitement with which Kwarans have received the new look of the capital city have drowned out the criticisms from the political opposition.
Abdulrazaq is a typical leader trapped at the intersection of history, the current realities of the digital age, and the capacity of his own people, Kwarans. This is why his decisions are mostly dictated by the geography, demography, and history of the state, sometimes ruffling feathers.
Restoring the proper land use and aesthetics of the GRA and environs reflects his interrogation of history, such as the location and naming of the Sugar Factory film studios to remind younger generations of the Tate & Lyle. The garment factory, the largest in Nigeria in one single location, brought to memory the legacy of cloth-making and enterprise for which Kwarans were known, while the bespoke Innovation Hub speaks to his understanding of how technology has redesigned how we live in this century.
Governor Abdulrazaq understands that Kwara has one of the largest concentration of shea trees in the country, explaining his establishment of two factories in Kaiama and Baruten in the shea belt, the former being one of the biggest in the country.
He is currently rebuilding the Patigi Motel to resuscitate the regatta, a dream now strengthened by the establishment of the Kampe National Park in the same axis. The Governor is fascinated by the successes of the Okin Biscuits in Offa and Jebba paper mills, but his dream for the two is hampered by boardroom politics and decay in which they are long trapped. The visual arts centre heralds his vision for creativity, tourism, and sports development, explaining the investment in the Owu Water Fall road, eight-winged squash court, international conference centre, and the resuscitation of the indoor sports hall, table tennis area, among others.
Along with dozens of rural roads that connect towns and agrarian communities, the Governor has recently delivered the Osi and Ilesha Baruba campuses of Kwara State University, a pointer to his effort to ensure statewide development and roll back rural urban migration.
The focus on Offa and Lafiagi Stadia this year will strengthen this effort, as would the ongoing Shonga ICT Centre and the upcoming rehabilitation of the Patigi Cultural Centre.
He believes that the capital city is filled up and growing informally. This has consequences for sustainable living in the future. The Ilorin smart city, his brainchild, is to allow for a well-planned physical development.
But his dreams will require a successor who views Kwara as a state in a race to fulfil its destiny, bolstered by its geography, culture, and the lofty aspirations of its people. From health, education, agribusiness, social protection, and infrastructure, his successor will be lucky to inherit a template to move faster, possibly less encumbered by the hugely entrenched prebendary politics that stared Abdulrazaq in the face.
His achievements are a new record breaker in the annals of Kwara. He has hired up to 8,600 teachers between 2019 and now, the highest that any (Kwara) administration has employed since 1999, while his KwaraLEARN continues to improve literacy, numeracy, and general learning outcomes.
Abdulrazaq’s handling of sensitive issues of national importance proves his bonafide as a true leader who, like Konrad Adenauer, prefers dialogue, strategic humility, consensus-building, and patience in place of grandstanding and media show. In deference to the President, whom he holds in high esteem, and in national interest, he convinced his colleagues of the need to work out a consensus tax policy for Nigeria. He had acted in the same way following the subsidy removal, the transitional difficulties, and the multifaceted responses to mitigate the effects on the public. He proved that such sensitive moments require leaders to act with extreme caution — a quality that speaks to his standing as the Sardauna of the southernmost emirate in Nigeria.
▪︎ Rafiu Ajakaye is Chief Press Secretary to the Governor
Opinion
Zacch Adedeji: And The Revenue Keeps Increasing By Rabiu Usman By Rabiu Usman

It was President Bola Tinubu that declared that in the first half of this year, the revenue of Nigeria soared to over N9.1 trillion, compared to the first half of 2023.For instance, N5.2 Trillion accrued into the Federation Account for the period January to June 2023, while a total of N7.3 Trillion accrued into the account for the period July to December, 2023.However, for June this year, accruals into the Federation Account rose to N2.483 trillion in June 2024. It was N2.324.792 trillion in May, meaning for the two months of May and June this year alone, about N4.8 trillion accrued into the Federation Account while N5.2 trillion accrued into the account for the first six months of last year.The President attributed the revenue increase to the government’s efforts in blocking leakages, introducing automation, and mobilizing funding creatively, all without placing an additional burden on the people.A few days after the President spoke glowingly of the considerable increase in the revenue of the country, a process being powered by the Federal Inland Revenue Service (FIRS), under the Chairmanship of Dr Zacch Adedeji, the Nigeria’s Zaccheus the Tax Collector, the World Bank also confirmed the progress being made in the area of revenue generation.The World Bank projected that following the recent increase in government revenue, Nigeria’s revenue-to-GDP ratio could rise to over 10.5 percent by the end of 2024.Ndiamé Diop, World Bank country director for Nigeria shared the forecast during an interactive session on ‘Fiscal Reforms for a More Secure Future’ at the 30th Nigerian Economic Summit, held in Abuja last month.Also, according to data released in September by the National Bureau of Statistics (NBS), Nigeria’s Value Added Tax (VAT) revenue increased by 99.82% year-over-year in the second quarter of 2024.During this period, total VAT revenue reached N1.56 trillion, a 9.11% increase compared to the previous quarter.The NBS report highlighted that the revenue growth was driven primarily by local payments, which brought in about $484 million, while foreign payments contributed $242 million. VAT on imports generated $228 million.However, despite the level of progress already made, the FIRS under Dr Zacch Adedeji is not done yet.Various innovations are daily being introduced to ensure seamless payment of taxes by Nigerians.Last week, the Taxpayer Services Department of the FIRS launched the new USSD code *829#, aimed at revolutionizing taxpayer engagement and access to essential tax services.According to the FIRS, the initiative was aimed at “simplifying tax processes and providing a seamless, efficient service experience.”With the *829# USSD code, taxpayers can now effortlessly access a range of services, including TIN retrieval, Tax Clearance Certificate (TCC) verification, and general inquiries all from the convenience of their mobile phones and with no need for internet access.Also, Zacch Adedeji is everywhere, explaining the four tax bills currently before the National Assembly, assuring that it will not reduce the funding or operational efficiency of government agencies.Last week Wednesday, Adedeji addressed the heads of the National Agency for Science and Engineering Infrastructure (NASENI), the National Information Technology Development Agency (NITDA), and the Tertiary Education Trust Fund (TETFUND) at the Revenue House in Abuja. He allayed concerns surrounding the proposal to rename the FIRS as the Nigeria Revenue Service (NRS), clarifying that the change is intended to streamline and improve agency efficiency.He said the main goal was to align government revenue practices with current fiscal demands to ensure all agencies are well-funded and effective.Adedeji further highlighted that the proposed legislation would enable government agencies to concentrate on their core responsibilities without the added task of revenue collection.“The bills, once enacted, will allow agencies to focus on their primary functions instead of managing tax collection duties,” he explained.Adedeji, who appears to have taken up the job of an Explainer concerning the new tax bills, further pointed out that the bills were the aftermath of President Tinubu’s administration recognition of the need for a unified tax code to reduce complexity and stimulate economic growth.Perhaps, by the time this is being read, Dr Zacch Adedeji, will be standing before another audience to explain the ideas behind the new tax bills and their capability to further sore up the revenue base of the country, because for him, the revenue must keep increasing.Usman, a public affairs commentator lives in Abuja.
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