In a significant development for Nigeria's financial landscape, First Bank of Nigeria (FirstBank) has announced it has successfully met the Central Bank of Nigeria's (CBN) revised capital requirement well ahead of the March 2026 deadline. The bank's parent company, First HoldCo Plc, confirmed the milestone, which strengthens its capacity to support economic growth.
A Strategic Capital Raise Through Multiple Avenues
The required capital was secured through a strategic combination of a Rights Issue, a Private Placement, and proceeds from the divestment of the group's merchant banking subsidiary. This multi-pronged approach ensured the commercial banking subsidiary's total shareholders' funds now exceed the regulatory benchmark of N500 billion set for banks with international authorisation. The CBN has formally approved the bank's recapitalisation status.
Femi Otedola, Chairman of First HoldCo Plc, hailed the achievement as a pivotal moment. He stated that it marks a major milestone in the group's growth trajectory and reflects the collective hard work and dedication of the entire organisation. Otedola emphasized that this capital foundation positions the bank robustly for its next phase of expansion and thanked shareholders for their continued trust.
Deployment for Growth: Real Sector and Digital Innovation
FirstBank has outlined clear plans for the newly raised capital, focusing on critical areas of the economy and customer experience. A primary objective is to accelerate support for Nigeria's real sector, enabling the bank to finance larger transactions and offer more competitive solutions to businesses.
Furthermore, the bank intends to enhance financial inclusion across the country and deliver more innovative, digitally-driven experiences to its customers. This will involve strategic investments in technological innovation, expansion of product ranges, and an overall enhancement of the bank's brand presence.
Wale Oyedeji, Group Managing Director of First HoldCo, noted that the successful capital raise transcends mere regulatory compliance. "It shows the trust our shareholders, clients, and partners have in us," he said. Oyedeji added that this achievement will empower the bank to provide superior financial solutions while contributing to Nigeria's economic growth and stability.
Context: A Broader Banking Sector Recapitalisation Drive
FirstBank's accomplishment arrives at a crucial juncture for the Nigerian banking industry. In March 2024, the CBN directed all commercial banks to bolster their capital bases to new thresholds: N500 billion for international banks, N200 billion for national banks, and N50 billion for those with regional licenses.
This recapitalisation exercise is designed to fortify the banking system against economic shocks and enhance its capacity to support a larger economy. The CBN Governor, Olayemi Cardoso, recently confirmed that 14 banks have already met the new requirements, indicating a resilient financial sector with soundness indicators within healthy benchmarks.
For FirstBank, meeting this requirement early not only ensures regulatory compliance but also provides a significant competitive advantage. The strengthened balance sheet allows it to pursue new initiatives more aggressively, including digital banking solutions, targeted loans for small and medium-sized enterprises (SMEs), green finance options, and improved wealth management services.
