By Our Reporter
First HoldCo Plc has announced that its flagship commercial banking subsidiary, First Bank of Nigeria Limited (FirstBank), has met the Central Bank of Nigeria’s (CBN) minimum capital requirement of ₦500 billion, well ahead of the regulatory deadline.
FirstHoldCo, in a release, said the milestone was achieved through a series of strategic capital-raising initiatives, including a Rights Issue, a Private Placement, and the injection of proceeds from the divestment of its merchant banking subsidiary.
According to the release, the successful recapitalisation reflects strong investor confidence in the Group’s business model, long-term strategy and growth prospects, saying that with an enhanced capital base, FirstBank is expected to deepen its support for the real sector of the economy, expand financial inclusion, and strengthen the delivery of innovative, digitally driven banking services.
It added that the capital boost also strengthens the Group’s overall financial resilience, providing a solid platform for earnings growth through business expansion, technological innovation and the pursuit of new business opportunities.
In March 2024, the CBN directed commercial banks to raise their minimum capital base to ₦500 billion within a 24-month period as part of efforts to strengthen the stability and capacity of the Nigerian banking sector.
FirstHoldCo said FirstBank has now fully complied with the directive ahead of the stipulated timeline.
In a related development, FirstHoldCo disclosed plans to raise additional funding in 2026 to inject fresh capital into its other subsidiaries and new business adjacencies, in line with its strategy to enhance service offerings and drive strategic expansion.
Commenting on the development, Chairman of First HoldCo Plc, Femi Otedola, expressed appreciation to shareholders for their support throughout the capitalisation programme, even as he also acknowledged the guidance of the CBN and the Securities and Exchange Commission (SEC).
“From the oversubscribed Rights Issue to the seamless Private Placement, our investors have demonstrated strong confidence in our strategic direction.
“Achieving FirstBank’s recapitalisation ahead of schedule underscores our collective commitment and firmly positions the Group for its next phase of growth,” Otedola said.
Also speaking, Group Managing Director of First HoldCo Plc, Wale Oyedeji, described the capital raise as a pivotal milestone for the Group.
"This successful exercise provides the financial strength required to drive innovation, deliver superior customer value and enhance sustainable profitability.
"With this solid foundation, we are focused on accelerating performance, improving competitive returns and delivering long-term value to all stakeholders," he said.
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