First HoldCo approves N253bn capital raise to strengthen capital base and support growth after strong earnings rebound and recapitalisation drive

First HoldCo Plc, the parent company of FirstBank of Nigeria, on Friday approved a capital raising programme of up to N253.099 billion following shareholder endorsement at its 14th Annual General Meeting held virtually, marking a significant step in the group’s ongoing balance sheet strengthening strategy.

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First HoldCo N253bn capital raise is designed to boost the company’s financial position and support its ambition of achieving a N1 trillion paid-up capital base, comprising share capital and share premium, as it seeks to remain competitive within Nigeria’s evolving banking sector.

Shareholders granted approval for the transaction, which positions the group well above the Central Bank of Nigeria’s N500 billion minimum capital requirement for banks with international authorisation, reinforcing its regulatory strength and long-term stability.

Chairman of First HoldCo, Femi Otedola, told shareholders that the capital raising exercise would be subject to regulatory approval and could be executed through a range of market instruments depending on prevailing conditions.

He stated that the company had been authorised to proceed with the capital raise, which may be structured through public offerings, private placements, rights issues, bonus issues, scrip dividends or other equity-based instruments in both domestic and international markets.

Otedola further explained that pricing would be determined through a book building process or other valuation mechanisms approved by relevant regulators, ensuring flexibility and market alignment.

He also confirmed that the board had been empowered to take all necessary steps to secure listing and admission of any issued securities on the Nigerian Exchange Limited or other approved international platforms.

The development comes as First HoldCo continues to implement broader restructuring and capital optimisation measures, including a recently completed N45 billion private placement and the divestment of its merchant banking subsidiary, FBNQuest.

Despite a significant N826.3 billion impairment charge in its 2025 financial year as part of a balance sheet clean-up exercise, the group maintained profitability with a profit before tax of N235 billion.

Performance improved further in the first quarter of 2026, with profit before tax rising by 72.2 per cent to N321.1 billion, reflecting a strong earnings recovery and renewed investor confidence in the group’s strategic direction.

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The capital initiative is expected to further strengthen First HoldCo’s resilience as it continues to position itself among Nigeria’s leading financial institutions amid ongoing sector reforms.