Transforming Nigerian Banks: FirstHoldCo’s N1 Trillion Capital Base Vision 

FirstHoldCo Plc, the parent company of First Bank of Nigeria, is asking shareholders to approve a major capital raise that would take its paid‑up capital base toward ₦1 trillion. The plan is up for consideration at the group’s 14th Annual General Meeting on May 29, 2026.

So far, First Bank has already satisfied the Central Bank of Nigeria’s ₦500 billion minimum capital requirement for internationally authorised banks. The upcoming fundraising intends to bridge the gap toward double that threshold.

This move marks a shift from basic compliance with regulatory thresholds to a more ambitious aim: becoming a capital leader in Nigeria’s banking sector.

What FirstHoldCo Is Proposing

FirstHoldCo has asked shareholders to approve authority for a fresh capital raise of up to ₦253.099 billion. This funding could come through various types of equity issuance  including public offerings, private placements, rights issues, bonus issues, scrip dividends, or other instruments   in both local and international markets. The board will decide the structure, timing, and pricing methods.

The intent is to expand the company’s paid‑up capital base, which includes share capital and share premium, nudging it closer to the ambitious ₦1 trillion mark.

Beyond Compliance: A Strategy for Leadership

Chairman Femi Otedola has made clear that the proposal goes deeper than meeting regulatory minimums. He has publicly argued that the current ₦500 billion capital base is not enough for Nigeria’s largest banks given the country’s growth ambitions. In his view, a stronger capital foundation improves governance, competitive strength, and resilience against economic shocks.

Otedola has also recommended that the CBN consider raising the official minimum capital requirement for international banking licences to ₦1 trillion. FirstHoldCo’s independent push toward that level signals confidence in its long‑term strategy and readiness to lead industry peers.

The group has already taken steps to bolster its equity position, including rights issues, private placements, and the sale of its merchant banking arm, FBNQuest.

Why This Matters to the Banking Sector

FirstHoldCo’s capital goal aligns with broader trends emerging after the CBN’s March 2024 recapitalisation directive. The industry has largely met the initial ₦500 billion benchmark, but the post‑recapitalisation phase is now emphasising capital effectiveness, asset quality, earnings resilience, and governance strength rather than just meeting minimum capital floors.

A move toward a ₦1 trillion capital base by a major player reshapes how analysts and investors view competitive positioning among Nigeria’s largest banks.

Expert View

Analysts see FirstHoldCo’s proposal as strategic rather than symbolic. Instead of simply meeting regulatory must‑dos, the company appears to be positioning itself to push the industry forward.

One banking sector strategist said the move reflects a belief that larger capital bases create stronger partners for economic growth and risk absorption, especially in an economy aiming for a $1 trillion GDP. To achieve that, banks may need more firepower than the current minimum standards provide.

Others caution that raising capital at this scale still requires careful execution. Market conditions, investor appetite, and the potential dilution of existing shareholders are factors that could influence the ultimate success of the plan.

FAQs

What does FirstHoldCo want to do?
FirstHoldCo is asking shareholders to approve the raising of up to ₦253.099 billion in fresh capital to push its paid‑up capital base toward ₦1 trillion.

Why aim for ₦1 trillion?
The move is meant to go beyond the Central Bank’s minimum capital requirement of ₦500 billion and position FirstHoldCo as a stronger, more competitive institution. Chairman Femi Otedola has argued that larger capital bases can support better governance and growth.

How will the capital be raised?
The company plans to use a mix of equity instruments  such as public offerings, private placements, rights issues, bonus issues, or scrip dividends  in both Nigerian and international markets.