First Bank of Nigeria (FirstBank) has successfully met the ₦500 billion minimum capital requirement following the completion of a series of strategic capital-raising initiatives.
The First HoldCo Plc, the parent company, disclosed this in a statement issued on Monday and signed by its Group Company Secretary, Abiola Baruwa.
It stated that meeting the Central Bank of Nigeria’s (CBN) ₦500 billion minimum capital threshold is expected to enhance the bank’s financial resilience, among other benefits.
“This milestone was achieved following the completion of a series of strategic capital initiatives, including a Rights Issue, a Private Placement, and the injection of proceeds from the divestment of the Group’s merchant banking subsidiary.
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“The recapitalisation strengthens the Group’s overall financial resilience, providing a robust platform for earnings growth through business expansion, technological innovation, and the pursuit of new opportunities,” it stated.
Pinnacle Daily reports that CBN had mandated a compulsory recapitalisation of all the banks in the country.
It had, in April 2024, given a 24-month period to all banks to raise their capital base, setting a deadline of March 31, 2026.
Banks with international exposure are required to increase their capital base to N500 billion, national banks to N200 billion, regional banks and merchant banks to N50 billion, and non-interest banks with national and regional operations to N20 billion and N10 billion, respectively.
Pinnacle Daily reported recently that the Board Chairman of First Holdco, Femi Otedola, has called on the apex bank to increase the minimum capital threshold for international banks to ₦1 trillion.
The billionaire businessman and serial investor has said that Nigeria’s ambition to build a $1 trillion economy by 2030 cannot be realised without strongly capitalised financial institutions.
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“From where I stand, and with the benefit of many years in Nigeria’s business landscape, I believe it is time to raise the minimum capital requirement for international banking licences from ₦500 billion to at least ₦1 trillion.
“A modern economy aiming for the $1 trillion mark cannot rely on weakly capitalised banks,” Otedola said.
He recently divested his stake in Geregu Power Plc in a transaction reported to be worth about $750 million, fuelling speculation that the proceeds may be channelled into investments in the financial sector.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
