FirstHoldCo Seeks Shareholders’ Approval for N1 Trillion Capital Raise

FirstHoldCo Plc wants shareholders to approve a fresh capital raise as it pushes toward a N1 trillion paid-up capital base.

The holding company, which owns First Bank of Nigeria, will present the proposal at its 14th Annual General Meeting scheduled for May 29, 2026. The move forms part of a wider plan to strengthen its balance sheet and improve its position in Nigeria’s banking sector.

The Capital Raise Plan

FirstHoldCo plans to raise up to N253.099 billion in fresh capital. The company wants to use the funds to lift its paid-up capital to N1 trillion.

The capital may come through one or more routes. These include a public offer, private placement, rights issue, bonus issue, scrip dividend, or other equity instruments.

The company said the board will decide the structure, timing, price, and terms of the transaction. It will also seek the required regulatory approvals before completing the process.

Why FirstHoldCo Wants More Capital

The plan comes after First Bank met the Central Bank of Nigeria’s N500 billion minimum capital requirement for banks with international authorisation.

FirstHoldCo now wants to move beyond that threshold. Its target of N1 trillion signals a more ambitious strategy.

The company wants a stronger capital base to support growth, improve resilience, and compete better with other tier-one banks.

Otedola’s Bigger Banking Vision

FirstHoldCo Chairman, Femi Otedola, has argued that Nigerian banks need stronger capital buffers.

He believes banks with international licences should hold at least N1 trillion in capital. In his view, Nigeria needs stronger banks to support an economy that aims to reach $1 trillion in GDP.

Otedola has also linked stronger capital to better governance. He has warned that weakly capitalised banks can expose the financial system to poor management and insider abuse.

Recent Moves to Strengthen the Group

FirstHoldCo has already taken several steps to improve its capital position.

The group has used rights issues, private placements, and asset sales to strengthen its books. It also completed a N45 billion private placement in March 2026.

The latest N253 billion capital raise should help close the gap between its current position and the N1 trillion target.

Strong Earnings Support the Push

FirstHoldCo’s recent earnings give the capital plan extra weight.

The group reported a 72 percent year-on-year rise in profit before tax to N321.1 billion in the first quarter of 2026.

Its annualised return on equity stood at 31.6 percent. That placed it ahead of some major tier-one banking rivals, including Zenith Bank and GTCO, based on the figures cited in the report.

Governance and Recovery Efforts

The group has also made changes in leadership and governance.

Wale Oyedeji now serves as Group Managing Director of FirstHoldCo, while Olusegun Alebiosu leads First Bank as Chief Executive Officer.

Alebiosu has focused on asset recovery and risk management. First Bank recovered N19 billion in delinquent loans in the first quarter of 2026, according to the company’s figures cited in the report.

Expert View: Why the N1 Trillion Target Matters

Banking and capital market analysts will likely read FirstHoldCo’s move as both defensive and ambitious.

On one hand, the group wants a stronger capital buffer. Nigerian banks now operate in a tougher environment, with higher inflation, currency pressure, stricter regulation, and rising credit risks. A deeper capital base gives FirstHoldCo more room to absorb shocks and support bigger transactions.

On the other hand, the N1 trillion target sends a competitive message. FirstHoldCo is not only trying to satisfy the Central Bank of Nigeria’s recapitalisation demand. It wants to sit ahead of the curve and force other tier-one banks to respond.

The plan also gives investors something to watch. If the capital raise succeeds, FirstHoldCo could enter a stronger growth phase. It may have more capacity to lend, expand digital banking, support large corporate clients, and improve market confidence.

However, shareholders will also watch dilution risks. A fresh equity raise can reduce existing shareholders’ ownership if they do not participate. The company must therefore show how the new capital will create stronger returns over time.

The key question is simple: can FirstHoldCo turn a bigger capital base into better earnings, cleaner governance, and stronger shareholder value?

What This Means for the Banking Sector

FirstHoldCo’s N1 trillion target could raise the competitive bar for Nigeria’s biggest banks.

If shareholders approve the plan, the group will strengthen its capital base at a time when banks face tighter regulation, higher operating costs, and stronger demands for credit support.

The move also sends a clear message to the market. FirstHoldCo does not only want to meet regulatory requirements. It wants to lead the next phase of banking recapitalisation in Nigeria.

Frequently Asked Questions

What is FirstHoldCo planning?

FirstHoldCo wants shareholders to approve a capital raise of up to N253.099 billion. The goal is to lift its paid-up capital base to N1 trillion.

When will shareholders vote on the proposal?

The company plans to present the proposal at its 14th Annual General Meeting scheduled for May 29, 2026.

Why does FirstHoldCo want a N1 trillion capital base?

The group wants to strengthen its balance sheet, support growth, and improve its competitiveness. It also wants to move beyond the CBN’s N500 billion minimum capital requirement for banks with international authorisation.

How will FirstHoldCo raise the money?

The company may raise the funds through a public offer, private placement, rights issue, bonus issue, scrip dividend, or other equity instruments. The board will decide the final structure, subject to regulatory approval.