LAGOS — FirstHoldCo Plc has completed a major private placement aimed at strengthening the capital position of its flagship banking subsidiary, First Bank of Nigeria Ltd., the Nigerian financial group said this week, as lenders continue efforts to comply with tougher regulatory capital requirements introduced by the Central Bank of Nigeria (CBN).
The company announced on June 18 that it had successfully completed a second tranche of its ongoing capital-raising programme, securing about 45 billion naira after receiving approvals from the CBN and the Securities and Exchange Commission. According to the company, the proceeds will be injected into FirstBank as part of a broader recapitalisation effort.
The placement forms part of a wider plan by FirstHoldCo to raise approximately 350 billion naira. The group said it had already injected about 270 billion naira into FirstBank before the latest fundraising round, bringing it closer to meeting regulatory capital targets.
Nigeria’s banking sector has been undergoing a recapitalisation drive since the CBN raised minimum capital thresholds for lenders in 2024. Banks have been required to raise fresh equity or pursue other measures to strengthen their balance sheets ahead of regulatory deadlines. According to CBN Governor Olayemi Cardoso, 20 banks had met the new requirements by February, while others were still working toward compliance.
FirstHoldCo said the additional capital is expected to support lending activities, strengthen financial resilience and help maintain compliance with regulatory requirements. The company also said the funds would support growth initiatives across corporate, commercial and retail banking operations.
Group Chairman Femi Otedola thanked shareholders for supporting the capital-raising programme and a separate proposal to increase the company’s paid-up share capital.
“The support of our shareholders demonstrates confidence in the group’s business model and future direction,” Otedola said in a statement released by the company.
Group Managing Director Wale Oyedeji described the latest placement as an endorsement of the company’s strategy and said the proceeds would further strengthen FirstBank’s capital base.
The fundraising comes amid broader efforts by Nigerian lenders to adapt to higher capital requirements. Several banks, including Fidelity Bank and Sterling Financial Holdings, have announced successful recapitalisation programmes in recent months following regulatory approvals.
As of Friday, FirstHoldCo said it remained focused on raising the remaining funds required under its capital programme, while continuing discussions with investors and regulators. Details on the timing of future fundraising rounds were not immediately disclosed.
