First HoldCo Plc (“FirstHoldCo” or “the Group”) has announced that its commercial banking subsidiary, First Bank of Nigeria (FirstBank), has successfully met the Central Bank of Nigeria’s (CBN) minimum capital requirement of ₦500 billion. This milestone was achieved following the completion of a series of strategic capital initiatives, including a Rights Issue, a Private Placement, and the injection of proceeds from the divestment of the Group’s merchant banking subsidiary.
The development places FirstHoldCo among a growing list of Nigerian lenders strengthening their balance sheets, similar to how UBA surpassed ₦500bn capital threshold after its rights issue amid the industry-wide recapitalisation drive.
This successful capitalisation underscores strong market confidence in FirstHoldCo Group’s business model, long-term strategy, and growth prospects. With a fortified capital base, FirstBank is positioned to accelerate its support for the real sector, enhance financial inclusion, and deliver innovative, digitally driven customer experiences across Nigeria’s evolving financial landscape.
The recapitalisation also strengthens the Group’s overall financial resilience, providing a robust platform for earnings growth through business expansion, technological innovation, and the pursuit of new opportunities. Analysts note that these developments are reshaping Nigeria’s financial system, raising questions about who really wins from Nigeria’s bank recapitalisation push.
In March 2024, the CBN directed commercial banks to raise their capital base to a minimum of ₦500 billion within a 24-month period to bolster the Nigerian banking sector’s stability and capacity. FirstBank has now fulfilled this requirement well ahead of the regulatory deadline, at a time when broader fiscal and governance debates — including NNPC’s ₦5.57 trillion debt write-off and its implications for fiscal governance — continue to dominate economic discourse.
In a related development, FirstHoldCo has expressed its desire to raise fresh funding and inject additional capital into the Group’s existing subsidiaries and new business adjacencies in 2026. This forward-looking commitment is aimed at further enhancing service offerings and facilitating strategic expansion, in line with recent developments in Nigeria’s financial sector.
Commenting on the achievement, Mr. Femi Otedola, CON, Chairman of First HoldCo Plc, said:
“On behalf of the Board, I extend our profound gratitude to our shareholders for their trust and unwavering support throughout this capitalisation programme. From the oversubscribed Rights Issue to the seamless Private Placement, investors have demonstrated resounding confidence in our strategic direction. Securing FirstBank’s capital base ahead of schedule is a testament to our collective commitment and positions us firmly for our next growth phase. We also appreciate the professional guidance of the CBN and SEC throughout this process.”
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