Otedola urges CBN to raise banks’ capital to ₦1 trillion as FirstBank meets ₦500bn requirement

Billionaire investor and Chairman of First HoldCo Plc, Femi Otedola, has called on the Central Bank of Nigeria (CBN) to further strengthen the banking system by raising the minimum capital requirement for international banks to at least ₦1 trillion.

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Mr Otedola made the call on Friday in a statement in which he commended President Bola Tinubu and CBN Governor, Yemi Cardoso, for what he described as bold and disciplined economic reforms that are beginning to yield tangible results.

His comments came as FirstBank of Nigeria Limited, the commercial banking subsidiary of First HoldCo Plc, confirmed that it has met the ₦500 billion minimum capital base set by the CBN for banks holding international licences under the ongoing banking sector recapitalisation programme.

According to Mr Otedola, Nigeria’s ambition to build a $1 trillion economy cannot be achieved with weakly capitalised financial institutions.

“From where I stand, and with the benefit of many years in Nigeria’s business landscape, I believe it is time to raise the minimum capital requirement for international banking licences from ₦500 billion to at least ₦1 trillion,” he said. “A modern economy aiming for the $1 trillion mark cannot rely on weakly capitalised banks.”

He argued that stronger capital buffers would improve governance, expand ownership structures and curb the long-standing problem of banks being run as “personal estates”.

The CBN, under Mr Cardoso, announced in 2024 a major recapitalisation exercise for Nigerian banks, the first in nearly two decades, in response to inflationary pressures, currency volatility and the need to position lenders to finance larger-ticket transactions in the real economy.

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International banks were directed to raise their minimum capital to ₦500 billion, while national and regional banks face lower thresholds.

Mr Otedola described the recapitalisation policy as timely and necessary, noting that banks recorded strong profits in 2024 and are now expected to focus on prudence and consolidation.

“2025 has rightly become a year of prudence and consolidation,” he said, adding that only well-capitalised banks would be able to support long-term lending to critical sectors of the economy.

On FirstBank’s compliance, Mr Otedola said the bank’s shareholders are committed to injecting additional capital into its subsidiaries and expanding into new business adjacencies.

FirstBank, Nigeria’s oldest financial institution, operates across Africa and other international markets.

Beyond banking reforms, the businessman praised President Tinubu’s economic leadership, saying the administration’s tough reforms were laying the foundation for sustainable growth.

“President Bola Ahmed Tinubu has shown remarkable courage and clarity in steering our country through difficult but necessary reforms,” he said, pointing to growing international recognition of Nigeria’s policy direction.

READ ALSO: Otedola praises Tinubu, Cardoso as FirstBank successfully completes N500bn capital raise

Mr Otedola also lauded Mr Cardoso’s monetary policy stance, crediting him with restoring confidence in the foreign exchange market and helping to slow inflation through what he described as a disciplined return to orthodox monetary policy.

He cited the strengthening of the naira on market fundamentals and the rise in Nigeria’s external reserves to over $46 billion (a seven-year high) as evidence of improved policy credibility.

“I say this without hesitation: Yemi Cardoso is the best Central Bank Governor Nigeria has ever produced,” Mr Otedola said. “His calmness, discipline, and unwavering focus on doing what is right, not what is easy, is the kind of leadership any serious economy needs.”

He urged the CBN governor to stay the course, adding that Nigeria is “turning a corner” and that investors who believe in the country will continue to support reforms aimed at building a stronger and more resilient economy.