By Grace Alegba
Lagos, Jan. 7, 2026
In a significant move that solidifies its position as a pillar of Nigeria’s financial system, FirstBank of Nigeria Ltd., the commercial banking subsidiary of First HoldCo Plc, has officially met the Central Bank of Nigeria’s (CBN) stringent N500 billion minimum capital requirement. The announcement, made well ahead of the March 2026 regulatory deadline, signals a major strategic victory for the bank and sets a benchmark for the industry.
The disclosure was confirmed in a corporate statement by Mr. Olayinka Ijabiyi, Acting Group Head, Marketing and Corporate Communications for FirstBank.
Deconstructing the Capital Raise: A Multi-Pronged Strategy
Ijabiyi detailed that this milestone was not achieved through a single avenue but via a sophisticated, multi-pronged capital strategy. This included:
- A Rights Issue: Offering existing shareholders the right to purchase additional shares, a method that rewards and reinforces loyalty while raising capital.
- A Private Placement: Securing capital from select institutional and high-net-worth investors, indicating strong confidence from sophisticated market players.
- Proceeds from Divestment: Strategically divesting from its merchant banking subsidiary (FBNQuest Merchant Bank) to streamline operations and funnel resources into its core commercial banking business.
“This successful capitalisation is a testament to the robust market confidence in FirstHoldCo’s business model, its long-term vision, and compelling growth prospects,” Ijabiyi stated. The approach demonstrates a mature capital markets strategy, balancing shareholder interests with strategic portfolio management.
Beyond Compliance: The Strategic Implications of a Fortified Balance Sheet
Meeting this capital threshold is far more than a regulatory checkbox. It fundamentally reshapes the bank’s capacity and ambition. Ijabiyi outlined the expected impacts:
- Accelerated Real Sector Support: With a stronger capital base, FirstBank can underwrite larger loans to critical sectors like manufacturing, agriculture, and infrastructure—key drivers of economic growth—without breaching single-obligor limits.
- Deepened Financial Inclusion: Enhanced capital allows for greater investment in agent banking networks, fintech partnerships, and low-cost digital platforms to reach the unbanked and underbanked populations.
- Digital Innovation & Resilience: A fortified balance sheet provides the financial muscle to invest heavily in cybersecurity, core banking system upgrades, and customer-facing digital experiences, crucial for competing in the modern financial landscape.
“This recapitalisation strengthens our financial resilience and creates a powerful platform for sustainable earnings growth through geographic expansion, technological investment, and seizing new business opportunities,” Ijabiyi added.
Context: The CBN’s Recapitalisation Directive
This achievement must be viewed against the backdrop of the CBN’s landmark directive in March 2024, which mandated all commercial banks to raise their minimum capital base to N500 billion within a 24-month window. The policy’s primary objective was to bolster the banking sector’s resilience against economic shocks, enhance its capacity to support a larger economy, and align Nigerian banks with global capital adequacy standards. FirstBank’s early compliance positions it as a leader in this sector-wide transformation.
Looking Ahead: Future Capital Plans and Leadership Vision
FirstHoldCo is not resting on its laurels. Ijabiyi revealed plans for a fresh funding round in 2026, aimed at injecting additional capital into other subsidiaries and exploring “new business adjacencies.” This suggests potential ventures into areas like asset management, insurance, or payment solutions, aiming to build a more comprehensive financial services ecosystem.
Commenting on the achievement, the Chairman of First HoldCo Plc, Mr. Femi Otedola, expressed profound gratitude to shareholders. “Their unwavering trust and support throughout this intensive capitalisation programme have been instrumental. Securing FirstBank’s capital base ahead of schedule positions us firmly for our next growth phase,” Otedola said, also acknowledging the guidance from the CBN and the Securities and Exchange Commission (SEC).
Echoing this forward-looking sentiment, the Group Managing Director, Mr. Wale Oyedeji, emphasized the operational impact. “This successful capital raise fundamentally strengthens our ability to execute our strategic priorities and deliver lasting value to all our stakeholders—customers, shareholders, and the Nigerian economy at large.”
The early fulfillment of the CBN’s capital requirement places FirstBank in an enviable position of strength. It allows the bank’s management to shift focus from regulatory pressure to strategic execution, potentially giving it a first-mover advantage in lending, expansion, and innovation as the Nigerian financial sector enters a new, more robust era.
Edited by Modupe Adeloye / Kamal Tayo Oropo
