First HoldCo Plc, the parent company of Nigeria’s oldest and one of its most systemically important financial institutions, FirstBank, has secured shareholder approval for a multi-tranche capital raising programme of up to ₦253.099 billion.
The approval was granted at the company’s 14th Annual General Meeting (AGM) held on 29 May 2026. It will allow the group to raise funds through a combination of instruments, including public offers, private placements, rights issues, bonus issues, scrip dividends, and other equity instruments in domestic and international capital markets.
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This approval, which authorises the HoldCo Board to pursue this bold move, is designed to complement existing capital and accelerate the Group’s pathway to a ₦1 trillion paid-up capital base, comprising share capital and share premium, while preserving flexibility to optimise timing, structure, and investor participation.
For discerning shareholders and investors, the significance of this initiative is clear: stronger capital creates stronger possibilities. It enhances resilience, expands lending and underwriting capacity, improves strategic flexibility, and positions FirstHoldCo to capture opportunities that materially strengthen earnings power and long-term franchise value. This is therefore not a routine regulatory response, but a deliberate investment in future competitiveness, profitability, and market leadership.
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In an operating environment where scale, capital strength, and execution discipline increasingly determine market leadership, a ₦1 trillion capital base gives FirstHoldCo the capacity to compete from a position of strength. It materially improves the Group’s shock-absorption capacity, strengthens confidence among counterparties and investors, and equips the business to participate more meaningfully in larger, higher-quality transactions across infrastructure, manufacturing, energy, technology, and other strategic sectors of the Nigerian economy.
Furthermore, the programme is expected to expand the Group’s footprint across priority markets and business verticals, enhance its competitiveness among Tier-1 financial institutions, and, most importantly, unlock sustainable long-term value for shareholders. In this regard, FirstHoldCo is not only responding to industry trends but actively shaping the future capital and competitive dynamics of the Nigerian banking ecosystem.
Just as importantly, the stronger capital base is expected to expand the Group’s footprint, deepen its competitive standing among Tier-1 institutions, and create room for disciplined growth across priority markets and business verticals. This translates into a more scalable earnings platform, improved capacity for value-accretive expansion, and a clearer pathway to sustainable long-term returns. FirstHoldCo is therefore not simply adjusting to the future of Nigerian banking; it is positioning itself to help define it.
Central to this transformation is the leadership of the Group Chairman, Femi Otedola, CON, whose influence and resolute focus have driven a significant shift in governance, oversight, and institutional discipline across the Group. Since assuming office in January 2024, Mr Otedola has strengthened board independence and effectiveness across subsidiaries, reinforced governance structures in line with global best practices, and instilled a culture of accountability, transparency, and performance discipline.
In addition, the Group Chairman has played a pivotal role in repositioning the Group away from legacy challenges towards a future-focused growth trajectory. His consistent advocacy for stronger capitalisation across the banking sector reflects a firm belief that well-capitalised institutions are fundamental to financial system stability, enhanced governance, investor confidence, and sustainable economic growth.
The proceeds from the capital raise will be deployed with a clear focus on measurable value creation. Key priorities include expanding the balance sheet to support growth in high-quality risk assets; increasing the Group’s capacity to finance large corporates, infrastructure projects, and emerging sectors; and accelerating investment in digital transformation, technology, data capabilities, and customer experience platforms. These investments are designed to strengthen competitive advantage, improve operating efficiency, and support superior long-term earnings generation.
In addition, the capital will support subsidiary recapitalisation across banking and non-banking entities, reinforce regulatory headroom, and enable expansion into targeted regional and international markets. This disciplined deployment framework is intended to ensure that every tranche of capital contributes meaningfully to stronger returns, improved resilience, and long-term franchise growth. The programme is structured not only to meet capital thresholds, but to convert capital strength into shareholder value.
The Group has already demonstrated strong execution capability through a successful capital raise of N83.7 billion and ₦45.0 billion private placement completed in December 2025 and March 2026, respectively, alongside prior N149.6 billion rights issues and capital optimisation initiatives. Strategic divestments, including that of FBNQuest Merchant Bank, have further streamlined operations and sharpened strategic focus.
These initiatives form part of a coherent, multi-pronged capital strategy designed to optimise both funding capacity and operational efficiency. FirstHoldCo’s capital ambition is underpinned by strong financial momentum, with the Group recording a 72% year-on-year growth in Profit Before Tax (PBT) to ₦321.1 billion in Q1 2026, alongside an industry-leading Return on Equity (ROE) of 31.6% (annualised). This combination of stronger performance and stronger capital provides a compelling foundation for confidence in the Group’s execution capacity and future value creation potential.
This performance reflects a remarkable turnaround driven by the successful resolution of legacy risk exposures, enhanced risk management practices, and strengthened loan recovery efforts.
Commenting on the development, the Group Chairman, Femi Otedola, stated:
“The approval by our shareholders to raise up to ₦1 trillion in capital marks a defining moment in the evolution of FirstHoldCo. This is not merely a capital raise; it represents a bold strategic repositioning of the Group for sustainable growth, stronger governance, and long-term value creation. We are committed to building a well-capitalised institution capable of supporting Nigeria’s economic aspirations while maintaining the highest standards of transparency and accountability.”
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Also speaking, the Group Managing Director/CEO, Wale Oyedeji, said:
“This capital programme provides the financial strength and flexibility required to accelerate our strategic ambitions. Our focus is on disciplined and value accretive deployment of capital across our core businesses, digital transformation initiatives, and expansion priorities. We are confident that this will enhance our earnings capacity, strengthen our market position, and deliver superior returns to our shareholders.”
With strong shareholder backing, a clearly defined strategic roadmap, and strengthened governance under active reform-oriented leadership, FirstHoldCo is well-positioned to execute this ambitious capital programme successfully. The journey to a ₦1 trillion capital base is more than a scale milestone; it is a strategic platform for greater resilience, larger opportunities, stronger earnings capacity, and sustained shareholder value creation.
It reinforces FirstHoldCo’s readiness not only to compete at the highest level, but to lead with confidence in shaping the future of financial services in Nigeria and beyond.
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