Holdco: Otedola, Board Secure Approval for N253bn Capital Injection

Shareholders of First Holdco Plc have approved plans by the board, led by its Chairman, Mr Olufemi Otedola, to raise up to N253.1 billion in fresh capital as the financial services group positions itself to meet the Central Bank of Nigeria’s (CBN) new capital requirements for banks.
The approval was granted at the company’s 14th Annual General Meeting (AGM) held virtually on May 29.
The resolution authorises First Holdco to undertake the capital raise through various channels, including a public offer, private placement, rights issue, bonus issue, scrip dividend or other equity instruments in the Nigerian and international capital markets.
The proposed fundraising is expected to increase the company’s paid-up capital, comprising share capital and share premium, to N1 trillion.
The move comes as Nigerian banks intensify efforts to comply with the CBN’s recapitalisation directive aimed at strengthening the banking sector and enhancing its capacity to support economic growth.
Under the resolution, the board was granted the flexibility to determine the structure, pricing, timing and implementation of the capital raise, subject to approvals from relevant regulatory authorities.
Shareholders also approved the re-election of Otedola and Dr Abiodun Fatade as Non-Executive Directors, reaffirming confidence in the current leadership as the group pursues its recapitalisation programme and broader growth strategy.
In addition, the AGM empowered the board to increase the company’s share capital as required, allot new shares arising from the fundraising exercise and undertake all regulatory processes necessary to implement the transaction.
The approvals also authorise the company to amend its constitutional documents where necessary and secure the listing of any newly issued securities on the Nigerian Exchange Ltd. and other approved markets.
Industry observers say the fundraising exercise will be closely watched by investors because of its significance to First Holdco’s future growth plans and its position within Nigeria’s banking industry.
The board was further authorised to appoint professional advisers, underwriters and other parties required to execute the capital raise and ensure compliance with regulatory directives.
Beyond the recapitalisation plans, shareholders approved the constitution of the statutory audit committee for the 2026 financial year. The committee comprises three shareholder representatives and two independent non-executive directors.
The AGM also received and adopted the group’s audited financial statements for the year ended Dec. 31, 2025, together with the reports of the directors, external auditors, board evaluation consultants and audit committee.
Shareholders further authorised the board to determine the remuneration of the company’s external auditor, KPMG Professional Services, for the period ending at the next AGM.
The resolutions provide First Holdco with the legal framework required to proceed with one of the most significant capital-raising exercises in its recent history as competition intensifies among banks seeking to meet the CBN’s new capital thresholds.