FirstHoldCo targets ₦1tn capital base in aggressive balance sheet push

FirstHoldCo Plc, the parent entity of Nigeria’s oldest commercial lender (First Bank), is seeking to double the regulatory capital ceiling for international banks, signalling a new phase of aggressive expansion and balance-sheet fortification.

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In a notice for its 14th Annual General Meeting (AGM) scheduled for May 29, 2026, the group proposed a special resolution to raise ₦253.099 billion in fresh capital, aiming to reach a paid-up capital base of ₦ 1 trillion, comprising share capital and share premium.

“The capital raise transaction shall be implemented by one or more transactions, through the issuance of shares, by way of a public offering, private placement, rights issue, bonus issues, scrip dividend, or other equity instruments in the Nigerian or international capital markets, at price(s) to be determined by way of a book building process or any other valuation method or combination of methods, in such tranches, series or proportions and at such periods or dates, coupon or interest rates, within such maturity periods and upon such other terms and conditions as may be determined by the Board of Directors (the “Directors”), subject to obtaining the approvals of the relevant regulatory authorities,” FirstHoldCo said in the statement on the NGX.

The move comes just months after its banking subsidiary, First Bank of Nigeria, successfully met the Central Bank of Nigeria’s (CBN) current minimum threshold of ₦500 billion for international authorisation. By targeting ₦1 trillion, FirstHoldCo is positioning itself to lead an industry-wide “up-tiering” that Chairman Femi Otedola argues is essential for institutions operating in an economy striving for a $1 trillion GDP.

Otedola’s ₦1 Trillion Vision

The proposed capital raise is more than a regulatory box-ticking exercise; it is a strategic statement of intent.

Mr Otedola has publicly called for the CBN to raise the minimum requirement for international banking licenses from ₦500 billion to at least ₦1 trillion.

He argues that a modern Nigerian economy cannot rely on “weakly capitalised banks” and that stronger capital bases will drive better governance and prevent institutions from being “run like personal estates”.

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FirstHoldCo has utilised a multi-pronged approach to shore up its equity, including a rights issue, private placements, and the divestment of its merchant banking subsidiary, FBNQuest. The group recently completed a ₦45 billion private placement in March 2026.

The new ₦253 billion raise, once finalised, is expected to bridge the gap toward the ₦1 trillion target, effectively resetting the competitive benchmark for “FUGAZ” peers (Zenith, UBA, GTCO, and Access).

While the capital raise targets long-term stability, FirstHoldCo’s Q1 2026 performance provides the immediate fundamental justification for investor appetite. The group reported a 72% year-on-year surge in Profit Before Tax (PBT) to ₦321.1 billion, eclipsing the growth rates of its tier-1 rivals.

Crucially, FirstHoldCo has emerged as the industry leader in capital efficiency. Its Return on Equity (ROE) stood at 31.6% (annualised) for the quarter, the highest among the FUGAZ cohort, outperforming Zenith (24.9%) and GTCO (24.8%).

This “phoenix-like” recovery follows a massive ₦826 billion legacy debt cleanup in late 2025, which has freed up the balance sheet to capture high-yield private-sector credit opportunities.

Leadership and Governance Pivot

The strategic shift is being spearheaded by a revamped leadership team, with Wale Oyedeji serving as Group Managing Director of FirstHoldCo and Olusegun Alebiosu leading as the CEO of the flagship banking subsidiary, First Bank.

READ ALSO: First HoldCo Plc grows gross earnings to N3.4trn for the year ended 31 Dec 2025

Mr Alebiosu, a former Chief Risk Officer, has focused heavily on asset recovery, clawing back ₦19 billion in delinquent loans in Q1 2026 alone, a 1,570% increase that has turned risk management into a significant revenue stream.

Under Mr Otedola’s chairmanship, the group has also tightened internal prudential standards and appointed new boards for non-banking subsidiaries to enhance corporate governance.