Abayomi Susan
Shareholders of First HoldCo Plc, the parent company of FirstBank, Nigeria’s oldest bank, have approved a ₦1 trillion paid-up capital base at the Group’s 14th Annual General Meeting, marking what Chairman Femi Otedola described as a “defining moment” in the organisation’s long-term growth strategy.
The resolution was passed at the virtual AGM held on 29 May 2026, authorising the Board to undertake a multi-tranche capital raising programme of up to ₦253.099 billion. The capital will be raised through a mix of public offers, private placements, rights issues, bonus issues, scrip dividends, and other equity instruments across both domestic and international capital markets.
Capital Base Expansion to ₦1 Trillion
The ₦1 trillion target, comprising share capital and share premium, is twice the Central Bank of Nigeria’s (CBN) ₦500 billion minimum capital requirement for internationally authorised banks. FirstBank had already met the regulatory threshold ahead of the AGM.
According to Otedola, the initiative represents a strategic decision aimed at strengthening long-term competitiveness rather than a mere regulatory compliance exercise. He noted that Nigeria’s ambition of achieving a $1 trillion economy requires robustly capitalised financial institutions capable of supporting large-scale growth.
He further stated that the approval reflects a deliberate repositioning of the Group for sustainable expansion, improved governance, and enhanced shareholder value creation.
The capital programme is designed to accelerate FirstHoldCo’s progression toward the ₦1 trillion benchmark while allowing flexibility in timing, structure, and investor participation. The Group explained that a stronger capital base will enhance resilience, expand lending and underwriting capacity, improve strategic flexibility, and position the institution to capture value-accretive opportunities.
The ₦253.099 billion raise represents the final tranche of the programme, following a ₦45 billion private placement completed in March 2026, a rights issue, and the divestment of FBNQuest Merchant Bank as part of ongoing balance sheet optimisation efforts.
Group Managing Director/CEO, Wale Oyedeji, noted that the capital programme will provide the financial strength required to accelerate strategic priorities, with a focus on disciplined capital deployment across core banking operations, digital transformation, and expansion initiatives.
Positioning for a $1 Trillion Economy
FirstHoldCo’s ₦1 trillion capital ambition aligns with its broader strategy to position itself as a leading financial institution within Nigeria’s projected $1 trillion economy. The strengthened capital base is expected to support larger transaction capacities, enhanced syndicated lending, and improved competitiveness against regional and global banking institutions.
The strategy also sets a benchmark within the industry, potentially influencing peer banks such as Zenith Bank, UBA, GTCO, and Access Holdings to pursue similar recapitalisation initiatives.
Strong Financial Performance
The capital expansion is supported by robust financial results, with FirstHoldCo reporting a 72% year-on-year increase in Profit Before Tax to ₦321.1 billion in Q1 2026. The Group also recorded an annualised Return on Equity of 31.6%, while total share capital and share premium stood at ₦480.6 billion as of the same period.
Subject to regulatory approval, the Board will determine the timing, structure, and pricing of the capital raise through appropriate valuation mechanisms, including book building.
For shareholders, the overarching message remains clear: stronger capital is expected to drive stronger growth and long-term value creation.
