Finance
First HoldCo Approves Fresh Capital
Shareholders of First HoldCo Plc have approved plans to raise up to N253.099 billion as the financial group moves to strengthen its capital base and achieve a paid-up capital target of N1 trillion.
The approval was granted during the company’s 14th Annual General Meeting held virtually on Friday.
The planned capital raise forms part of the group’s broader strategy to reinforce its balance sheet and strengthen its financial position amid ongoing banking sector recapitalisation requirements.
The approved N1 trillion paid-up capital target, which includes share capital and share premium, is double the Central Bank of Nigeria’s minimum capital requirement of N500 billion for banks operating with international authorisation.
Chairman of First HoldCo, Femi Otedola, while presenting the resolution at the meeting, stated that the capital raising exercise would be subject to approvals from relevant regulatory authorities.
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According to him, the transaction may be executed through multiple funding channels and capital market instruments depending on prevailing market conditions.
“That the company be and is hereby authorised to undertake a capital raise of up to N253.099 billion to achieve N1 trillion paid-up capital comprising share capital and share premium,” Otedola said.
He added that the capital raise could be implemented through “one or more transactions, through the issuance of shares, by way of a public offering, private placement, rights issue, bonus issues, scrip dividend, or other equity instruments in the Nigerian or international capital markets.”
Otedola further explained that the pricing structure for the transaction would be determined through a book-building process or any other valuation methodology approved by regulators.
According to him, the board of directors has also been authorised to take all necessary steps required to secure the listing and admission of any securities issued under the programme on the Nigerian Exchange Limited or other recognised securities markets.
The latest capital raising plan comes shortly after FirstBank of Nigeria, the group’s flagship banking subsidiary, successfully met the Central Bank’s N500 billion minimum capital threshold for banks with international licences.
The group has continued to pursue multiple capital enhancement initiatives as part of efforts to strengthen shareholder funds and improve long-term competitiveness within the banking sector.
As part of that strategy, First HoldCo completed a N45 billion private placement transaction in March 2026 aimed at supporting its capital adequacy position.
The group has also proceeded with the divestment of its merchant banking subsidiary, FBNQuest, as part of a broader capital optimisation programme designed to streamline operations and improve efficiency.
Industry analysts noted that the proposed N253.099 billion capital raise is expected to further deepen the group’s capital buffers and improve its capacity to compete among Nigeria’s largest financial institutions.
The development comes amid intensified recapitalisation efforts across Nigeria’s banking industry following regulatory directives aimed at strengthening the sector’s resilience and ability to support economic growth.
Market observers also stated that stronger capital positions would improve banks’ ability to absorb shocks, support larger lending activities and finance long-term projects across critical sectors of the economy.
The group’s multi-channel funding approach is expected to provide flexibility in sourcing capital from both local and international investors depending on market conditions and regulatory approvals.
Analysts said the proposed transaction also signals continued investor confidence in the group’s long-term growth prospects and strategic direction.
The planned capital raise is expected to enhance First HoldCo’s liquidity profile, support expansion plans and improve its overall financial standing within the Nigerian banking industry.
Shareholders at the meeting also approved resolutions empowering directors to undertake all actions necessary to implement the transaction and complete associated regulatory and listing processes.
The group stated that the transaction would be carried out in compliance with applicable laws, regulatory requirements and market rules governing capital raising activities in Nigeria and international financial markets.
First HoldCo remains one of Nigeria’s largest financial services groups, with operations spanning commercial banking, asset management and other financial services businesses.
The company’s latest capital initiative comes at a time when major Nigerian banks are accelerating efforts to meet new regulatory capital requirements while positioning for future growth opportunities within Africa’s evolving financial services sector.
