In Nigeria’s banking culture, the current account referee form has long behaved like an heirloom—handed down from a bygone era of cheque books, personal trust, and paper-based banking. Anyone who operates a current account has likely been asked by their account officer to “stand as a referee” for someone they barely know, often as a favour and sometimes with no real connection to the individual seeking the account. It is a ritual that once served a purpose but now survives mostly because it has always existed.

Historically, the referee system was born from the prudential framework under the Banks and Other Financial Institutions Act. In the days when financial records were kept in metal cabinets and customer risk assessments relied heavily on staff intuition, banks needed some assurance that the person opening a current account was credible, traceable, and unlikely to disappear after issuing a bad cheque. A referee acted as a human guarantee—someone the bank could contact if transactions went wrong. In a country where reliable physical addresses, verifiable identity records, and digital footprints were scarce, it was a sensible patch over a structural gap.

That context no longer exists. Nigeria has spent the past decade building one of Africa’s most advanced digital identity ecosystems. The Bank Verification Number (BVN) creates a unified identity for banking customers and builds behavioural history across institutions. The National Identification Number (NIN) embeds biometric and demographic data that is significantly more accurate than any handwritten endorsement. SIM registration connects verified identities to mobile numbers used in mobile banking, while the Corporate Affairs Commission now provides transparent digital records on directors and beneficial ownership of companies.

By the time a customer seeks to open a current account today, they almost always have a savings account or corporate profile with a structured transaction history. Their financial identity is not theoretical—it is visible. Digital banks and traditional institutions now rely on automated risk scoring, real-time fraud detection, geolocation intelligence, improved credit reporting, and address verification tools. These systems outperform paper references by offering meaningful insights rather than relying on social trust.

Open banking is transforming the equation even further. With consent, banks can view transaction patterns, account histories and cash flow behaviour across the ecosystem, enabling risk decisions based on data rather than personal endorsements. Against this backdrop, the referee form feels less like a safeguard and more like an outdated obstacle left behind by a paper-first regulatory mindset.

The requirement is not just obsolete; it has become a barrier. Nigerians in the diaspora—who maintain local investments, pensions, and property—struggle to satisfy a rule designed for a world where referees lived within driving distance. Foreign investors encounter a rule almost unheard of in comparable markets, signalling bureaucratic friction at a time Nigeria is actively seeking capital. Pension administrators serving non-resident contributors face the same bottleneck, and multinational firms opening accounts waste time chasing signatures despite having verifiable corporate identities through global systems and CAC’s digital database.

Meanwhile, digital-first banks operating without the referee model have proven the point: account onboarding can be secure without manual references. They use the tools the Central Bank itself mandated and continue to refine—BVN, NIN, stronger address mapping, open banking, improved credit reporting, and real-time monitoring. These tools reduce fraud far more effectively than a signature from an acquaintance with no liability.

Global practice reinforces this logic. Mature markets—whether in the UK, the United States, South Africa, Singapore, or the UAE—do not use referees for current account onboarding. Their controls rest on digital verification, compliance checks, transactional analytics, and automated risk engines. Nigeria now has these same capabilities, and its regulatory framework has evolved to support them.

The referee model mattered when the country lacked reliable identity systems. Today, it duplicates what technology already solves with greater precision. If a bank can confirm who a customer is, where they live, and how they transact, then collecting signatures from two acquaintances adds administrative noise rather than genuine protection.

As Nigeria pushes for deeper financial inclusion, easier diaspora participation, and a more attractive investment environment, phasing out the referee requirement is not only rational—it is overdue. The CBN created the digital infrastructure that makes the rule unnecessary. The next logical step is to retire a legacy practice and let modern verification systems perform the role referees once played.

FCMB Group Plc has announced the successful completion of its public offer, marking a critical step toward achieving the N500 billion capital benchmark mandated by the Central Bank of Nigeria (CBN) for commercial banks operating under a holding company structure. The development places the financial group in a strong position ahead of the March 2026 recapitalisation deadline, a regulatory milestone designed to strengthen the banking sector and support economic stability.

The announcement was disclosed through a notice to the Nigerian Exchange (NGX), reinforcing confidence among investors and stakeholders who have closely tracked the progress of Nigerian banks in their efforts to meet the new capital thresholds. The conclusion of the offer represents one of the most strategic milestones in FCMB’s multi-phase recapitalisation plan initiated in 2024.

Strategic Capital Raise Reaches Critical Phase

According to the Group, the public offer process has now been completed and will be followed by the planned sale of a minority stake in one of its subsidiaries—an additional capital mobilisation strategy expected to further consolidate FCMB’s balance sheet. The Group stated that the subsidiary stake sale is expected to be finalised before the end of December, subject to regulatory clearances.

In its statement, FCMB highlighted that it is working closely with regulators to complete the mandatory capital verification process now ongoing at the CBN. This verification will be followed by a shareholder vote at the Extraordinary General Meeting (EGM) and the final round of regulatory approvals. The Group expressed confidence in concluding the required processes well ahead of the CBN’s deadline, saying:

“We have successfully concluded our public offer and are on track to complete the minority subsidiary sale by the end of December. Subject to CBN capital verification, shareholder approval at the EGM, and the required regulatory consents, we are positioned to deliver the N500bn capital target ahead of the March 2026 deadline for our banking subsidiary, FCMB Limited.”

Momentum Builds After N160 Billion Public Offer

FCMB’s latest capital-raising move began in October 2025, when the Group launched a N160 billion public offer involving the issuance of 16 billion ordinary shares at N10 per share. The subscription window closed on November 6, marking the end of one of the bank’s most extensive public fundraising exercises to date.

The transaction represents the second phase of FCMB’s strategy to reinforce its capital position. The first phase took place in 2024, when the Group raised N147.5 billion through an equity sale that was oversubscribed by 33%. According to FCMB, over 42,800 investors participated in that round, with 92% of subscriptions completed digitally, highlighting both strong investor confidence and the increasing penetration of digital investment platforms in the Nigerian capital market.

In its latest update, the Group noted that the public offer reflects its expanding operational performance, driven by strong margins, higher customer activity, and rapid digital growth. FCMB added that it expects to maintain “healthy profitability and a strong capital position going into 2026.”

Capital Raising Milestones Over 18 Months

The Group’s recapitalisation journey has been built on a series of well-sequenced financing activities, including:

• N144.56 billion raised from the oversubscribed 2024 offer

• Expansion of its capital issuance ceiling from N150 billion to N340 billion

• Subsequent increase of the issuance ceiling to N370 billion disclosed in November 2025

• A US$15 million mandatory convertible loan converted fully into equity

• The just-concluded N160 billion 2025 public offer

These moves have collectively put FCMB in a strong position to meet regulatory expectations. At the moment, the Group is awaiting CBN capital verification and the completion of final compliance steps.

Capital Ceiling Increase Driven by Regulatory Requirement

In its latest clarification to shareholders, FCMB explained that the decision to raise its capital-raising authority from N340 billion to N400 billion is not a new fundraising initiative. Rather, it is a technical compliance adjustment to meet the latest regulatory framework issued by the CBN. The announcement was included in an addendum to its EGM notice published on November 21, 2025, amending the resolutions earlier issued on November 15.

With the recapitalisation process advancing rapidly, FCMB appears poised to meet the CBN’s capital adequacy timeline, positioning the bank for stronger growth, enhanced liquidity, and greater resilience in the face of evolving macroeconomic pressures. The completion of its public offer marks not only a regulatory milestone but also a demonstration of confidence in the Group’s long-term strategy and operational performance.