In a significant development for Nigeria's financial sector, First Bank of Nigeria Limited, the commercial banking subsidiary of First HoldCo Plc, has announced it has successfully met the Central Bank of Nigeria's (CBN) minimum capital requirement of N500 billion. The milestone was achieved well ahead of the regulatory deadline of March 2026.
A Strategic Capitalisation Drive
The banking group reached this crucial threshold through a series of strategic capital initiatives. These included a fully subscribed Rights Issue, a Private Placement, and the injection of funds from the divestment of its merchant banking subsidiary. This successful capital raise highlights strong investor confidence in the group's business model and future strategy.
Chairman of First HoldCo Plc, billionaire investor Femi Otedola, expressed his gratitude to shareholders for their support. "Securing FirstBank’s capital base ahead of schedule is a testament to our collective commitment," Otedola stated. He also acknowledged the guidance provided by the CBN and the Securities and Exchange Commission (SEC) throughout the process.
Positioning for Future Growth and Stability
This recapitalisation effort is a direct response to the CBN's directive issued in March 2024, which mandated all commercial banks to raise their capital base to a minimum of N500 billion within a 24-month window. The policy aims to bolster the overall stability and lending capacity of Nigeria's banking industry.
With its newly fortified capital base, FirstBank is now positioned to accelerate its core objectives. The bank plans to increase support for Nigeria's real sector, enhance financial inclusion efforts, and deliver more innovative, digitally-driven services to its customers.
Looking Beyond 2026: Ambitions for Further Expansion
In a forward-looking statement, First HoldCo revealed plans to raise additional capital in 2026. The intended fresh funding is earmarked for injection into the group's existing subsidiaries and for exploring new business adjacencies. This indicates a long-term strategy focused on growth and diversification.
Group Managing Director, Wale Oyedeji, commented on the achievement, calling it a "pivotal milestone." He emphasized that the strengthened financial position provides the platform to drive innovation, deliver superior customer value, and enhance sustainable profitability for the benefit of all stakeholders.
The successful early compliance not only underscores FirstBank's financial resilience but also sets a robust foundation for future earnings growth through business expansion and technological advancement.
