The Chairman of First HoldCo Plc, Femi Otedola, has called on the Central Bank of Nigeria (CBN) to increase the minimum capital threshold for international banks to ₦1 trillion.
The billionaire businessman and serial investor made the call in a statement on Friday.
He believes that Nigeria’s ambition to build a $1 trillion economy by 2030 cannot be achieved with weakly capitalised financial institutions.
“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 stated.
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His comments came as FirstBank of Nigeria Limited, a subsidiary of First HoldCo, confirmed that it had met the ₦500 billion minimum capital base set by the CBN for banks with international licences.
Pinnacle Daily reports that the ongoing banks’ recapitalisation set by CBN will end on March 30 this year.
Commending President Bola Tinubu and CBN Governor Yemi Cardoso’s bold economic reforms, he stressed that stronger capital buffers would improve governance, expand ownership structures and curb the long-standing problem of banks being run as “personal estates”.
In April 2024, the CBN mandated banks to raise their capital base, which had not been carried out in nearly two decades since the last exercise.
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The policy is in response to inflationary pressures, currency volatility and the need to position banks to finance larger-ticket transactions in the real economy.
It directed that international banks raise their minimum capital to ₦500 billion and set a lower threshold for national and regional banks.
According to the First Holdco chairman, the recapitalisation policy was timely and necessary, noting that banks recorded strong profits in 2024 and are now expected to focus on prudence and consolidation.
“2025 has rightly become a year of prudence and consolidation,” Otedola said.
He also believes that only well-capitalised banks will be able to support long-term lending to critical sectors of the economy.
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Hinting at FirstBank’s compliance with the recapitalisation, Otedola said the bank’s shareholders are committed to injecting additional capital into its subsidiaries and expanding into new business adjacencies.
Praising President Tinubu’s economic leadership, he said the administration’s bold reforms were laying the foundation for sustainable growth.
“President Bola Ahmed Tinubu has shown remarkable courage and clarity in steering our country through difficult but necessary reforms,” Otedola said.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
