First HoldCo Plc, the parent company of First Bank of Nigeria will be seeking shareholders’ approval to raise up to N253.099 billion in fresh capital, as the group pursues an audacious target of reaching a N1 trillion paid-up capital base comprising share capital and share premium.
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The fundraising plan is contained in the notice for the group’s 14th Annual General Meeting (AGM), scheduled to hold on May 29, 2026, where shareholders will consider resolutions covering equity capital raising and broader balance sheet fortification.
According to the notice filed with the Nigerian Exchange (NGX), the capital raise will be implemented through one or more transactions and in such tranches, series, or proportions as may be determined by the Board of Directors, subject to obtaining approvals from relevant regulatory authorities.
What the lender is saying:
According to the AGM notice, the capital raise will be executed through a variety of instruments and issuance methods, reflecting a deliberately flexible approach to achieving the N1 trillion target.
- The directors are seeking authority to raise up to N253.099 billion in fresh equity capital through a combination of public offerings, private placements, rights issues, bonus issues, scrip dividends, or other equity instruments in both Nigerian and international capital markets.
- Pricing will be determined through a book-building process or any other valuation method, or a combination of methods, at the discretion of the Board.
- The raise is designed to bridge the gap toward a N1 trillion paid-up capital base — a threshold that would effectively double the CBN’s current N500 billion minimum requirement for international banking authorisation.
The move comes just months after First Bank of Nigeria successfully met the CBN’s existing N500 billion threshold for international banking licences. By targeting N1 trillion, First HoldCo is positioning itself to spearhead an industry-wide capital consolidation.
More insights:
The proposed capital raise is more than a regulatory compliance exercise — it is a strategic statement of intent underpinned by a sweeping governance and balance sheet overhaul.
- The Chairman, Femi Otedola, has argued that a modern Nigerian economy targeting a $1 trillion GDP cannot be anchored on “weakly capitalised banks,” and has publicly called on the CBN to raise the minimum capital requirement for international banking licences from N500 billion to at least N1 trillion.
- First HoldCo has already pursued a multi-pronged capital mobilisation strategy, including a rights issue, private placements, and the divestment of its merchant banking subsidiary, FBNQuest. Most recently, the group completed a N45 billion private placement in March 2026.
The new N253 billion raise, once finalised, is expected to close the remaining gap toward the N1 trillion target, effectively resetting the competitive benchmark among its FUGAZ peers — Zenith Bank, UBA, GTCO, and Access Holdings.
What you should know:
First HoldCo’s fresh capital mobilization is coming against the backdrop of a full year 2025 audited financial results that revealed a one-off balance sheet cleanup of N826.3 billion impairment charge resulting in a subdued profit before tax of N235.0 billion before an income tax charge of N87.7 billion further reduced net profit to N147.3 billion.
- However, the Group reported a 72% year-on-year surge in Profit Before Tax to N321.1 billion in Q1 2026, suggesting a strong operational recovery after the legacy debt cleanup from its balance sheet in 2025.
- Under the leadership of Group Managing Director Wale Oyedeji and First Bank CEO Olusegun Alebiosu, asset recovery has also emerged as a significant revenue stream, with N19 billion in delinquent loans recovered in Q1 2026 alone — a 1,570% year-on-year increase.
Otedola’s chairmanship has further driven a tightening of internal prudential standards and the appointment of new boards across the group’s non-banking subsidiaries to strengthen corporate governance.
