FirstHoldCo Plc, the parent company of First Bank of Nigeria, is setting its sights on a ₦1 trillion capital base as part of an ambitious plan to strengthen its balance sheet and drive aggressive expansion.
In a notice ahead of its 14th Annual General Meeting (AGM) scheduled for May 29, 2026, the group proposed raising up to ₦253.1 billion in fresh capital. The goal is to significantly boost its paid-up capital—comprising share capital and share premium—to the ₦1 trillion mark.
The capital raise may be executed through multiple channels, including public offers, private placements, rights issues, bonus issues, scrip dividends, or other equity instruments across local and international markets. The structure, pricing, and timing will be determined by the board, subject to regulatory approvals.
Otedola’s ₦1 Trillion Vision
Chairman Femi Otedola has positioned the move as more than a regulatory requirement, describing it as a strategic step toward building stronger, more resilient financial institutions.
He has also advocated for the Central Bank of Nigeria (CBN) to raise the minimum capital requirement for international banking licenses from ₦500 billion to at least ₦1 trillion, arguing that a growing economy cannot rely on undercapitalised banks.
FirstHoldCo has already taken several steps to strengthen its capital base, including a rights issue, private placements, and the divestment of its merchant banking arm, FBNQuest. The group recently completed a ₦45 billion private placement in March 2026. The proposed ₦253 billion raise is expected to close the gap toward its ₦1 trillion target, potentially resetting the competitive benchmark among top-tier banks.
Strong Performance Driving Investor Confidence
The group’s strong financial performance is expected to support investor interest. In Q1 2026, FirstHoldCo reported a 72% year-on-year increase in Profit Before Tax (PBT) to ₦321.1 billion, outperforming many of its tier-1 peers.
It also recorded a Return on Equity (ROE) of 31.6% (annualised), the highest among leading banks, reflecting improved capital efficiency. This performance follows a major balance sheet clean-up in late 2025, which saw the resolution of ₦826 billion in legacy debt.
Leadership and Governance Reforms
The transformation is being driven by a restructured leadership team. Wale Oyedeji, Group Managing Director of FirstHoldCo, and Olusegun Alebiosu, CEO of First Bank, are leading efforts to strengthen operations and risk management.
Alebiosu, a former Chief Risk Officer, has prioritised asset recovery, with ₦19 billion recovered from delinquent loans in Q1 2026 alone—marking a significant turnaround.
Under Otedola’s leadership, the group has also enhanced corporate governance by tightening internal controls and appointing new boards across its non-banking subsidiaries.