Introduction to First Bank of Nigeria’s Achievement
First Bank of Nigeria Limited, a leading commercial banking subsidiary of First HoldCo Plc, has successfully met the Central Bank of Nigeria’s minimum capital requirement of N500bn. This achievement is a significant milestone for the bank, demonstrating its financial strength and stability.
Meeting the Minimum Capital Requirement
The Acting Group Head, Marketing and Corporate Communications of FirstBank, Olayinka Ijabiyi, announced that the bank achieved the capital threshold through a combination of a rights issue, private placement, and proceeds from the divestment of its merchant banking subsidiary. This development reflects investor confidence in the group’s business model and growth outlook.
Impact of the Achievement
With a fortified capital base, FirstBank is positioned to accelerate real sector support, deepen financial inclusion, and deliver innovative, digitally driven customer experiences. The recapitalization strengthens financial resilience and provides a platform for earnings growth through expansion, technology, and new opportunities.
Background on the Capital Requirement
In March 2024, the Central Bank of Nigeria directed commercial banks to shore up their minimum capital to N500bn within 24 months to boost financial system stability. FirstBank has now met this requirement ahead of time, showcasing its commitment to financial stability and growth.
Future Plans
First HoldCo plans to raise additional funding in 2026 to inject more capital into subsidiaries and new business lines. This move is expected to further strengthen the bank’s financial position and support its strategic priorities.
Reaction from Key Stakeholders
Chairman, Femi Otedola, expressed gratitude to shareholders for their trust and support throughout the capitalization programme. He noted that securing FirstBank’s capital base ahead of schedule positions the bank firmly for its next growth phase. Group Managing Director, Mr Wale Oyedeji, also commented that the capital raise strengthens the execution of strategic priorities and the delivery of lasting value to stakeholders.
Conclusion
In conclusion, First Bank of Nigeria’s achievement of meeting the Central Bank of Nigeria’s minimum capital requirement is a testament to its financial strength and stability. With a fortified capital base, the bank is well-positioned to support the real sector, deepen financial inclusion, and deliver innovative customer experiences. The bank’s future plans, including raising additional funding, are expected to further strengthen its financial position and support its strategic priorities.
