February data pointed to improved growth momentum in the Nigerian private sector. Rates of expansion in output, new orders and purchasing activity all quickened as demand picked up and inflationary pressures showed signs of moderating.

That said, with costs continuing to rise sharply, some companies were reluctant to hire additional staff and employment increased only marginally. The headline figure derived from the survey is the Stanbic IBTC Purchasing Managers’ Index.

Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration. The headline PMI rose to 53.7 in February from 52.0 in January, signalling a solid monthly improvement in business conditions, and one that was the most pronounced since January 2024.

Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank commented: “Activity in Nigeria’s private sector improved for the third consecutive month with the latest PMI reading of 53.7 points in February at its highest level since January 2024 (54.5 points). A relatively stable exchange rate and moderation in fuel prices are supporting the ease in inflationary pressures, which in turn helped strengthen consumer demand in the month.

Thus, new orders increased for the fourth consecutive month, with survey participants noting a greater desire on the part of customers to commit to new projects. In line with the increase in new orders, output also increased sharply in February as the output index settled at 56.9 points from 53.7 points in January. That said, input price inflation eased further in February to its weakest level since April 2024.

However, about 39.0% of respondents increased their output prices in the month, with less than 1.0% lowering their charges. “Nigeria’s real GDP growth improved further in Q4:24, rising by 3.84% y/y, from 3.46% y/y in Q3:24. Growth in Q4:24 was the highest since Q4:21 when this economy grew by 3.98% y/y in real terms. Q4:24 GDP now brings 2024 full-year growth to 3.40%, from 2.74% in 2023, supported by both the oil and the non-oil sectors. In terms of contributions to the overall GDP growth in Q4:24, Services continue to dominate with a 79.0% contribution to the country’s GDP growth (same as Q3:24), followed by Agriculture with an 11.9% contribution while Industries contributed the remaining 9.0% of the real GDP growth in the review quarter.

“The non-oil sector of the Nigerian economy is now poised to improve further in 2025 as the lingering FX stability and improved FX liquidity bodes well for the real sector activities, including manufacturing, trade and real estate. This, in addition to the anticipated reduction in borrowing costs should further support the growth of the non-oil sector in 2025.

Accordingly, we project the non-oil sector to grow by 3.4% y/y in 2025. Therefore, we still expect the Nigerian economy to grow by 3.5% y/y in real terms in 2025 with the Q1:25 growth print forecasted to settle at 3.55% y/y.”

The health of the private sector has now strengthened in three consecutive months. Output increased for the third month running in February. Moreover, the latest expansion was sharp and the fastest since January 2024. Respondents linked the rise in activity to higher sales amid an improving demand environment. Output was up in agriculture, manufacturing, services and wholesale & retail, although in wholesale & retail the rise was only fractional. New orders also increased at a marked pace, with the latest rise the most pronounced in just over a year. Customers were reportedly more willing to commit to new projects.

Signs of strengthening demand coincided with moderating inflationary pressures. Overall input costs increased at the slowest pace in ten months, although the pace of inflation remained elevated amid higher prices for raw materials and a rise in staff costs that was the sharpest since March 2024.

In fact, cost pressures acted to limit the pace of job creation in February. Employment rose only marginally and at the slowest pace in three months, despite marked expansions in output and new orders.

Nevertheless, backlogs of work ticked down. In line with the picture for input costs, the pace of output price inflation remained sharp in February, but eased to a seven-month low. While employment rose only marginally, companies ramped up their input buying during the month, with the pace of growth the steepest since May 2023. Stocks of purchases also increased at a faster pace.

Despite rising demand for inputs, suppliers’ delivery times shortened to the greatest extent in seven months as prompt payments led to the speedy delivery of goods. Although companies were optimistic that output will increase further over the next 12 months, sentiment dipped in February and was below the series average.

Plans to expand businesses through the opening of new plants and increased export operations were among the factors supporting optimism.

Fidelity Bank Plc is making impressive strides on its path to fulfilling the recapitalisation targets set by the Central Bank of Nigeria (CBN).

With a successful first phase of its capital-raising initiative that recorded over 238% over subscription and share price growth of over 100%, clear evidence of huge surge in investor confidence for the bank.

Following the successful completion of phase 1 of its capital raise, the bank is exceptionally well-positioned to not only meet the regulatory threshold strengthen but also fuel its growth trajectory, with the recent conclusion of its equity capital raise through a Public Offer and Rights Issue, collectively known as the Combined Offer.

The response has been nothing short of extraordinary, with the Public Offer oversubscribed by an astounding 237.92%. This translates to 107,588 valid applications for a total of 23,768,724,000 ordinary shares, amounting to ₦231.7 billion. The Rights Issue also shone brightly, achieving a remarkable 137.73% subscription rate with 6,903 valid applications for 4,407,252,795 ordinary shares, totaling ₦40.7 billion.

Dr. Nneka Onyeali-Ikpe, the Managing Director and CEO of Fidelity Bank, expressed heartfelt gratitude for the overwhelming support from investors, stating:

“The positive results recorded in our Combined Offer are a testament to the strength of the Fidelity Bank franchise in the capital market.”

Such a robust response not only underscores investor confidence but also reaffirms the bank’s unwavering commitment to delivering innovative financial solutions and sustainable returns to its stakeholders.

Following this remarkable success, Fidelity Bank has secured shareholder approval to launch the second phase of its capital-raising initiatives. This includes a significant increase in the bank’s issued share capital from ₦26.7 billion to ₦36.7 billion. Shareholders endorsed this expansion during an Extraordinary General Meeting on February 6, 2025, approving the creation of an additional 20 billion ordinary shares of ₦0.50 each.

This strategic capital boost positions Fidelity Bank to meet the CBN’s new minimum regulatory capital requirement of ₦500 billion for banks with international authorisation by March 31, 2026. This ambitious goal aligns seamlessly with the bank’s vision for sustainable growth and exceptional service delivery, setting the stage for a dynamic future.

Fidelity Bank’s stock performance has further solidified its status as a top contender in the financial sector. From an initial offer price of ₦9.75 per share during the Public Offer, shares soared to a high of ₦21.15 on February 7, 2025, representing an impressive growth rate of over 116%.

This positions Fidelity Bank as one of the best-performing financial institutions in the market, with analysts from Apel Asset Limited noting an impressive 80% return on investment for shareholders who have held shares since 2023.

Market analysts project a considerable upside potential of 28.88%, establishing a fair value of Fidelity Bank at ₦23.15 against a reference price of ₦19.50. Such promising indicators not only enhance investor confidence but also position Fidelity Bank as a compelling investment opportunity within the Nigerian banking landscape.

The funds raised from the initial phases of the capital-raising exercises are earmarked for several key initiatives. Fidelity Bank plans to utilise these resources for local and international business expansion, enhancing technology infrastructure, and improving customer service initiatives. This proactive approach showcases the bank’s commitment to innovation and operational excellence.

As the bank gears up for the next phase of its capital-raising initiative, the primary focus remains on achieving its recapitalisation targets while consistently delivering value to stakeholders. The bank’s leadership is confident that, with sustained investor support and a robust financial strategy, it will adeptly navigate the evolving landscape of the Nigerian banking sector.

Fidelity Bank’s recent achievements in capital raising signal a pivotal moment in its journey toward strengthening its financial foundation. With robust investor backing, strategic capital allocation, and a clear vision for growth, Fidelity Bank is not just on track to meet its recapitalisation target—it is poised to exceed it.

The road ahead promises to be one of sustained growth and innovation, reinforcing Fidelity Bank’s position as a leader in the Nigerian financial sector. As the bank looks toward the future, it remains steadfast in its commitment to fostering strong relationships with investors and delivering on its promise of financial excellence and exceptional customer satisfaction.

Fidelity Bank’s proactive measures and impressive market performance pave the way for a brighter, more prosperous future—one where it continues to lead with integrity and vision in the ever-evolving financial landscape

Retail lender, Unity Bank Plc posted gross earnings of N59.3 billion for the full year ended December 31, 2023, representing a growth of 3.84% year-on-year.

In its audited financials submitted to the NGX Group Limited, the Bank also witnessed improvements across key performance indicators, including a significant appreciation of customer deposits by 23% to N402.9 billion from N327.4 billion within the period under review – an indication of sustained retail growth and customer confidence.

Other key highlights of the full-year results include the total assets which stood at N472.5 billion; net fee and income commission, N5.2 billion and an increase in interest income by 9.6% to 53.7 billion from N48.8 billion within the period.

Commenting on the result, the Managing Director/Chief Executive Officer of Unity Bank Plc, Mrs. Oluwatomi Somefun said the Bank had issued a profit alert to reflect revaluation loss arising from Naira devaluation which was due to the acute shortage of Forex that created an inclement business environment and, on the aggregate, set in an economic headwind. She noted, however, that in the full-year statement, this has bottomed out and the key performance indicators are rebounding from the low level of growth and negative trends that characterized the year.

Mrs. Somefun stated: “As we begin to see the margins being closed, it is an indication that the measures being taken to revamp all aspects of the business is being well received by the market: be it workable recapitalization plan, aggressive drive for asset creation, product innovation, or digital banking”.

“We will need to covet the improvements and further build upon it. As a corporate brand, we have a lot that is keeping us going: the positive sentiments and optimism, the growing franchise of the business and steady growth in different segments of the retail market across all the geo-political zones of Nigeria” ” she said.

She added, “We have the right indicators to reclaim lost grounds – innovating with the development and soon to be launched an omnichannel digital app to improve reliability, customer experience, support diverse products functionality which will impact earnings, income and profitability.”

The Central Bank of Nigeria (CBN) has recently approved a business combination with another innovative Bank in Nigeria, marking a significant milestone in the Bank’s growth strategy as it advances its recapitalization plans. This partnership is built on a shared vision to redefine the banking experience for our customers and will drive the transformation of the consolidated entity. By leveraging Unity Bank’s extensive branch network and strong customer relationships alongside the entity’s digital expertise and commitment to innovation, we aim to create a seamless integration of traditional and modern banking services.

Amid a review of key highlights that support the steady growth of the retail business, analysts are of the view that the Bank has continued to reflect a good outlook in terms of perception and confidence in the market, which by and large creates an entity with remarkable resilience whilst investors’ sentiments remain positive.

Stanbic IBTC Bank’s Corporate and Investment Banking (CIB) division is set to hold an innovative Gas and Infrastructure conference aimed at bringing key stakeholders from the energy and infrastructure sectors together.

The conference, scheduled to hold on Tuesday, 25 February 2025, will focus on the theme: Driving Gas and Infrastructure Opportunities in Africa. The vital roles that energy and infrastructure play in promoting comprehensive economic development and resilience across Nigeria will be discussed.

The conference will feature distinguished global executives from Standard Bank Group alongside prominent industry leaders and regulatory authorities. It aims to foster a holistic approach to development by exploring synergies between energy solutions and various critical infrastructure segments, including transportation, healthcare, and communications networks.

Eric Fajemisin, Executive Director, Corporate and Investment Banking, Stanbic IBTC Bank, stated, “Nigeria’s economic future hinges on our ability to develop integrated solutions that link our energy capabilities. This includes investment strategies for renewable energy projects and frameworks for financing green infrastructure, all while promoting broader critical infrastructure development. This conference unites visionaries who can transform these connections into tangible economic growth, job creation, and increased productivity across all sectors.”

The conference will feature a distinguished panel session, during which industry experts will explore how integrated development approaches can address Nigeria’s infrastructure deficit while promoting economic diversification. 

Key sector leaders from Standard Bank will also share expert views on how strategic collaboration in gas, power, and infrastructure can create sustainable opportunities for growth and development in Africa.

Joyce Dimkpa, Head, Client Coverage, Stanbic IBTC Bank, emphasised that Stanbic IBTC Bank believes effective collaboration between the gas and infrastructure sectors is essential for driving Nigeria’s economic growth.

“As we share insights and explore innovative solutions, we aim to forge partnerships that address challenges and unlock potentials for economic diversification” she said.

The comprehensive agenda will address critical aspects of integrated development, including innovative financing mechanisms for cross-sector projects, strategies for enhancing energy security while expanding infrastructure networks, and frameworks for public-private partnerships that maximise economic impact. Discussions will focus on practical solutions for overcoming energy shortages while advancing infrastructure development across sectors.

The event, to be held in Lagos will welcome senior executives and key decision-makers, creating an intimate environment for meaningful dialogue. This focused gathering will enable participants to explore collaborative opportunities that promote economic diversification and expansion.

This conference reinforces Stanbic IBTC Bank’s commitment to driving comprehensive economic development leveraging extensive expertise and networks to drive sustainable growth and development across the continent.

By Elvis Eromosele 

Public institutions in Nigeria have a knack for policy inconsistency. They can aggressively pursue a course of action one moment and, the very next, introduce measures that directly contradict their stated objectives. The Central Bank of Nigeria (CBN) is currently at the centre of one such paradox.

Everyone alive in the last couple of years witnessed the CBN champion financial inclusion, digital banking and cashless transactions. It actively encouraged banks to expand their digital footprint, increase adoption of digital payments and decongest the banking halls. Nigerians responded positively. People embraced digital banking, relying on ATMs, mobile transfers and POS terminals instead of entering the banking halls.

The CBN has issued a new directive that significantly increases charges on ATM withdrawals. The move, under the guise of improving efficiency, threatens to erode public confidence in the cashless policy and could force Nigerians back into the banking halls. It raises questions about Nigeria’s commitment to the Sustainable Development Goals (SDGs), especially Goal 8 (Decent Work and Economic Growth) and Goal 9 (Industry, Innovation and Infrastructure).

Last week, the CBN released a circular announcing new charges on ATM withdrawals, set to take effect from March 1, 2025. Under the new directive, customers using their bank’s ATMs will not be charged. However, interbank withdrawals will now incur a fee of N100 per N20,000 at on-site ATMs and up to N500 at off-site ATMs. International withdrawals will be charged based on acquirer fees, and the previous three free interbank withdrawals per month ceased.

A person withdrawing N100,000 from an ATM that does not belong to their bank could pay close to N3,000 in fees. This is a huge increase from the existing system, where customers are entitled to three free withdrawals before incurring minimal charges. This new policy contradicts CBN’s previous commitment to financial inclusion and digital economy growth.

Now, the introduction of new ATM withdrawal charges is likely to have several unintended consequences for Nigerians. One immediate effect will be the surge in the crowds in the banking hall, as many individuals, particularly those who cannot afford high transaction fees, will prefer to withdraw cash inside the bank. This defeats the purpose of the ATM expansion, which was meant to provide convenience and ease congestion in the banking halls.

In addition, the ripple effect will be felt by POS agents. As ATMs become a less attractive option due to higher costs, more Nigerians will turn to POS terminals for cash withdrawals. This increased demand may push POS agents to raise service fees, making transactions even more expensive for everyday users.

Moreover, these additional banking costs come at a time when inflation is already eroding the purchasing power of citizens. For many Nigerians struggling with economic hardship, the extra financial burden will worsen their situation. It will inadvertently make basic financial transactions more costly and less accessible. The new charges will pose a setback for financial inclusion and undermine the progress towards a more digital economy.

So, what’s the way forward?

To address the challenge posed by the new ATM withdrawal charges, the CBN should focus on policies that promote financial inclusion rather than discourage it. So, instead of imposing additional fees, it should encourage competition among banks by incentivizing them to expand ATM access, particularly in remote areas. This would reduce dependence on interbank withdrawals and improve overall efficiency.

In addition, reintroducing the previous allowance of three free interbank withdrawals per month would help sustain ATM usage without burdening customers. At the same time, strengthening digital payment infrastructure is crucial if the goal is to transition to a cashless economy. Many Nigerians still struggle with failed transactions, delays and high mobile banking fees, which must be addressed to build trust in digital payments.

The CBN should also regulate POS and mobile banking charges to prevent financial services from arbitrarily increasing fees in response to rising ATM costs. Without regulation, POS operators will likely raise their charges, making basic transactions more expensive for the public.

Furthermore, before implementing major policy changes, the CBN must prioritize public awareness and stakeholder engagement. Consulting financial institutions, consumer advocacy groups and the general public will ensure that new directives are well-received and do not disrupt economic activities.

The CBN’s new ATM withdrawal charges represent, in my view, a step backwards in the country’s financial inclusion journey. While the apex bank may claim that these charges will improve ATM efficiency, the reality is that they will discourage digital banking, force people back into long queues in the banking halls and impose additional hardship on the masses. I can almost safely predict it would lead to fights in the banking halls.

For now, however, the question remains: Is the CBN pushing Nigerians back into the banking halls? This is precisely what it looks like right now. Nigerians deserve respite.

Eromosele, a corporate communication professional and public affairs analyst, wrote via [email protected]

Fidelity Bank Plc, a leading financial institution, has once again demonstrated its unwavering commitment to enhancing its host communities’ lifestyles.

Through its dedicated education Corporate Social Responsibility (CSR) pillar, the bank recently undertook significant projects aimed at promoting quality education delivery across the country.

In Benin-City, Edo State, Fidelity Bank recently renovated the library at Emotan College, Wire Road. This initiative, which was executed under the auspices of the Fidelity Helping Hands Program (FHHP), was championed by the Phoenix Inductee Class of Fidelity Bank.

The FHHP allows Fidelity Bank staff to identify community needs, raise funds, and receive matching support from the bank to implement impactful projects.

At the official handover ceremony, Ovie Mukoro, Regional Bank Head, Midwest 1, Fidelity Bank Plc, highlighted the alignment of the renovation project with the bank’s CSR pillars, emphasising the promotion of quality education and youth empowerment. Mukoro stated: “The renovation project reflects the Bank’s commitment to enhancing the lives of its host communities through the dedication and generosity of its newly inducted staff who voluntarily contributed funds to support the project.”

The Principal of Emotan Junior College, Mrs. Idukpaye Henrietta, expressed her gratitude, noting that the investment in the school is an investment in the nation’s future. She looked forward to a lasting partnership that would continue to uplift and empower the students.

Similarly, Mrs. Sandra Iyalekhue, Acting Education Secretary, Oredo Local Government Education Authority (LGEA), commended Fidelity Bank for the kind gesture, noting that the project would contribute to the educational development of the students and promote research work.

In Abuja, Fidelity Bank further demonstrated its CSR commitment by donating 40 tables and chairs to LEA School at the Federal Capital Territory.

This initiative, also executed under the FHHP by the Prodigies Inductees Class, aims to support quality education delivery in a bid to achieve the Sustainable Development Goals (SDG) 4 – Quality Education.

Meksley Nwagboh, Divisional Head, Brand and Communications, Fidelity Bank Plc, emphasised the importance of supporting education as a tool for societal improvement.

He stated: “At Fidelity Bank, we recognise the importance of supporting education as a tool for improving society. Through initiatives like this, we aim to ensure that every child has access to essential educational resources and become an asset to their family, their community and the nation.”

The Headmaster of LEA School, Mr. Mohamed Musa, expressed his gratitude for the timely intervention, noting that the donation would address the critical need for adequate classroom seating, preventing students from having to sit on the floor during classes. He encouraged other corporations to follow Fidelity Bank’s lead and support quality education delivery.

These initiatives come to join a long list of Fidelity Bank’s interventions in the education sector. It will be recalled that the bank launched the Read2Lead Initiative last year to foster a culture of reading and writing among young people.

The bank also hosted a webinar targeted at businesses operating in the education sector, themed, “Maintaining Educational Standards Amidst Current Economic Realities”, in September 2024 as part of its strategy to improve the country’s education system.

Ranked among the best banks in Nigeria, Fidelity Bank Plc is a full-fledged Commercial Deposit Money Bank serving over 8.5 million customers through digital banking channels, its 251 business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.

About Fidelity Bank

The Bank is the recipient of multiple local and international Awards, including the Export Finance Bank of the Year at the 2023 BusinessDay Awards; the Banks and Other Financial Institutions (BAFI) Awards; Best Payment Solution Provider Nigeria 2023; and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards.

It was also recognised as the Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence 2023 and the Best Domestic Private Bank in Nigeria by the Euromoney Global Private Banking Awards 2023.