First HoldCo Plc has moved to secure shareholder approval for a sweeping capital expansion plan that would lift its equity base to N1 trillion, marking one of the most ambitious recapitalisation drives in Nigeria’s banking sector.
The proposal, contained in a notice ahead of the group’s 14th Annual General Meeting scheduled for May 29, 2026, signals a strategic push to strengthen the balance sheet of the parent company of First Bank of Nigeria and position it for larger-scale international banking operations.
The group said it intends to raise an additional N253.099 billion in fresh capital as part of a broader plan to expand paid-up capital through share capital and share premium to the N1 trillion mark.
According to the notice filed with the Nigerian Exchange and issued on May 11, 2026, the capital raise may be executed through a combination of instruments, including public offers, rights issues, private placements, bonus issues, script dividends or other equity transactions. Pricing will be determined through book-building or other valuation methods, subject to regulatory approvals.
The company said the structure, timing and mix of instruments will be decided by its board, depending on market conditions and investor appetite.
The latest move builds on earlier capital initiatives by the group, including a March 2026 private placement worth about N45 billion, as FirstHoldCo accelerates efforts to meet and exceed regulatory thresholds for internationally licensed banks in Nigeria.
It also follows the successful recapitalisation of its flagship banking arm, First Bank of Nigeria Limited, which recently met the Central Bank of Nigeria’s N500 billion minimum capital requirement for international authorisation.
Group chairman Femi Otedola has been vocal in pushing for stronger capital buffers across the industry, arguing that Nigeria’s banking system requires far stronger institutions to support a projected $1 trillion economy and compete globally.
He has also advocated raising the minimum capital threshold for international banking licences to at least N1 trillion, warning that undercapitalised lenders risk weak governance structures and inefficiencies.
FirstHoldCo’s capital strategy has combined equity raises with portfolio restructuring, including the divestment of its merchant banking arm, FBNQuest, as part of a broader balance sheet clean-up.
The group’s financial performance in the first quarter of 2026 has provided further momentum for the recapitalisation drive.
It reported a profit before tax of N321.1 billion for the period, representing a 72 percent year-on-year increase and one of the strongest earnings rebounds in the Tier-1 banking group.
The performance followed a significant balance sheet reset in late 2025, when the lender undertook large-scale provisions and write-offs totalling about N826 billion in legacy exposures.
Group managing director Wale Oyedeji has overseen the broader restructuring effort, while chief executive of First Bank, Olusegun Alebiosu, has focused on asset recovery and risk tightening.
The bank said Alebiosu recovered about N19 billion in delinquent loans in the first quarter of 2026 alone, representing a sharp improvement in recovery efficiency and a shift toward making risk management a revenue-supporting function.
FirstHoldCo also reported one of the strongest returns on equity in the sector, at 31.6 percent annualised for Q1 2026, ahead of peers including Zenith Bank Plc and Guaranty Trust Holding Company Plc.
Analysts say the planned N1 trillion capital base would significantly alter competitive dynamics in Nigeria’s banking industry, particularly among Tier-1 lenders often referred to as FUGAZ, as recapitalisation pressures intensify ahead of expected regulatory tightening.
If approved at the May 29 meeting, the transaction would position FirstHoldCo among the most aggressively capitalised financial institutions in the country, with implications for lending capacity, risk absorption and regional expansion strategy.