First HoldCo shareholders approve N253 billion capital raise to reach N1 trillion paid-up capital
Shareholders of First HoldCo Plc, the parent company of FirstBank of Nigeria, have approved a capital raise of up to N253.099 billion as the group moves to achieve N1 trillion in paid-up capital.
The resolution was passed at the company’s 14th Annual General Meeting held virtually on Friday, May 29, 2026, and monitored by Nairametrics.
The approved capital raise is part of First HoldCo’s broader balance sheet fortification plan, coming after the group had earlier proposed the transaction in its AGM notice.
The target of N1 trillion in paid-up capital, comprising share capital and share premium, is double the Central Bank of Nigeria’s N500 billion minimum capital requirement for banks with international authorisation.
What they are saying
Reading the resolution at the AGM, the Chairman of First HoldCo, Femi Otedola, said the capital raise would be subject to the approval of relevant regulatory authorities. He noted that the transaction could be implemented through one or more capital market instruments.
“That the company be and is hereby authorised to undertake a capital raise of up to N253.099 billion to achieve N1 trillion paid-up capital comprising share capital and share premium,” Otedola said.
“The capital raise transaction shall be implemented by one or more transactions, through the issuance of shares, by way of a public offering, private placement, rights issue, bonus issues, scrip dividend, or other equity instruments in the Nigerian or international capital markets.”
He added that the pricing would be determined “by way of a book building process or any other valuation method or combination of methods,” subject to regulatory approval.
Otedola also said the directors were authorised to take all necessary actions to secure the listing and admission to trading of any securities issued under the resolution on the Official List of the Nigerian Exchange Limited or any other securities exchange or market.
More insights
First HoldCo is moving to deepen its capital buffers shortly after FirstBank of Nigeria, its banking subsidiary, met the CBN’s N500 billion minimum capital requirement for international banking authorization.
The new N253.099 billion raise is expected to support the group’s move toward a N1 trillion paid-up capital base.
First HoldCo has already adopted a multi-pronged capital strategy, including rights issues, private placements, and asset divestments.
The group recently completed a N45 billion private placement in March 2026 as part of efforts to strengthen its equity base.
It has also moved ahead with the divestment of its merchant banking subsidiary, FBNQuest, as part of its capital optimisation strategy.
The fresh capital raise, once completed, is expected to further strengthen First HoldCo’s balance sheet and position the group more competitively among Nigeria’s largest banking institutions.
What you should know
First HoldCo’s latest capital mobilisation comes after its audited 2025 financial results showed the impact of a major balance sheet clean-up.
The group recorded an impairment charge of N826.3 billion in 2025, which weighed on profitability.
Profit before tax stood at N235.0 billion for the 2025 financial year, while income tax expense of N87.7 billion reduced net profit to N147.3 billion.
However, First HoldCo reported a strong rebound in the first quarter of 2026, with profit before tax rising to N321.1 billion.
The Q1 2026 figure represented a 72.2% year-on-year increase from N186.48 billion recorded in the corresponding period of 2025.
The recovery suggests that the group’s underlying earnings momentum remains strong following the one-off provisioning and legacy debt clean-up carried out in 2025.
