Business

FirstHoldCo targets ₦1tn capital base in aggressive balance sheet push

Published

3 months ago

May 8, 2026

Preport

FirstHoldCo Plc, the parent entity of Nigeria’s oldest commercial lender (First Bank), is seeking to double the regulatory capital ceiling for international banks, signalling a new phase of aggressive expansion and balance-sheet fortification.

In a notice for its 14th Annual General Meeting (AGM) scheduled for May 29, 2026, the group proposed a special resolution to raise ₦253.099 billion in fresh capital, aiming to reach a paid-up capital base of ₦ 1 trillion, comprising share capital and share premium.

“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, at price(s) to be determined by way of a book building process or any other valuation method or combination of methods, in such tranches, series or proportions and at such periods or dates, coupon or interest rates, within such maturity periods and upon such other terms and conditions as may be determined by the Board of Directors (the “Directors”), subject to obtaining the approvals of the relevant regulatory authorities,” FirstHoldCo said in the statement on the NGX.

The move comes just months after its banking subsidiary, First Bank of Nigeria, successfully met the Central Bank of Nigeria’s (CBN) current minimum threshold of ₦500 billion for international authorisation. By targeting ₦1 trillion, FirstHoldCo is positioning itself to lead an industry-wide “up-tiering” that Chairman Femi Otedola argues is essential for institutions operating in an economy striving for a $1 trillion GDP.

Otedola’s ₦1 Trillion Vision

The proposed capital raise is more than a regulatory box-ticking exercise; it is a strategic statement of intent.

Mr Otedola has publicly called for the CBN to raise the minimum requirement for international banking licenses from ₦500 billion to at least ₦1 trillion.

He argues that a modern Nigerian economy cannot rely on “weakly capitalised banks” and that stronger capital bases will drive better governance and prevent institutions from being “run like personal estates”.

FirstHoldCo has utilised a multi-pronged approach to shore up its equity, including a rights issue, private placements, and the divestment of its merchant banking subsidiary, FBNQuest. The group recently completed a ₦45 billion private placement in March 2026.

The new ₦253 billion raise, once finalised, is expected to bridge the gap toward the ₦1 trillion target, effectively resetting the competitive benchmark for “FUGAZ” peers (Zenith, UBA, GTCO, and Access).

While the capital raise targets long-term stability, FirstHoldCo’s Q1 2026 performance provides the immediate fundamental justification for investor appetite. The group reported a 72% year-on-year surge in Profit Before Tax (PBT) to ₦321.1 billion, eclipsing the growth rates of its tier-1 rivals.

Crucially, FirstHoldCo has emerged as the industry leader in capital efficiency. Its Return on Equity (ROE) stood at 31.6% (annualised) for the quarter, the highest among the FUGAZ cohort, outperforming Zenith (24.9%) and GTCO (24.8%).

This “phoenix-like” recovery follows a massive ₦826 billion legacy debt cleanup in late 2025, which has freed up the balance sheet to capture high-yield private-sector credit opportunities.

Leadership and Governance Pivot

The strategic shift is being spearheaded by a revamped leadership team, with Wale Oyedeji serving as Group Managing Director of FirstHoldCo and Olusegun Alebiosu leading as the CEO of the flagship banking subsidiary, First Bank.

Mr Alebiosu, a former Chief Risk Officer, has focused heavily on asset recovery, clawing back ₦19 billion in delinquent loans in Q1 2026 alone, a 1,570% increase that has turned risk management into a significant revenue stream.

Under Mr Otedola’s chairmanship, the group has also tightened internal prudential standards and appointed new boards for non-banking subsidiaries to enhance corporate governance.

Related Topics:1tn aggressive balance Base capital FirstHoldCo Push sheet targets

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Business

HBM Nigeria, United Capital, Wema Bank top stock pick this week

Published

2 hours ago

August 3, 2026

Preport

Nigerian stocks retreated by 0.8 per cent last week, despite the release of several strong half-year results, as profit-taking pressured trade. Sell-offs in consumer goods stocks fuelled the slide.

This week, more corporate results are expected, notably those of the big banking institutions, which could shape the direction the market may go in the near term.

This week, increased positioning, notably in stocks that pay dividends at least twice a year, could be witnessed as the market awaits the release of half-year corporate results.

PREMIUM TIMES has assembled some stocks with sound fundamentals, adopting rigorous approaches to save you the risk of picking equities at random for investment.

The pick, a product of an analytical market watch, offers a guide to entering the market and taking strategic positions, with the expectation that selected stocks will record reasonable price appreciation with the passage of time.

This is not a buy, sell or hold recommendation but a stock investment guide. You may need to involve your financial advisor before taking investment decisions.

HBM Nigeria

HBM Nigeria tops this week’s list for its strong fundamentals. The net profit ratio (NPR) of the cement manufacturer is 9.6, while the price-to-earnings (PE) ratio is 18.1x. Its 10-day relative strength index (RSI) is 58.7.

United Capital

United Capital appears on the pick on the basis of its attractive fundamentals. The NPR of the company is 51.2, while the PE ratio is 10.1x.

Wema Bank

Wema Bank makes the selection for its strong fundamentals and for trading below its intrinsic value. The lender’s NPR is 30.5, while the PE ratio is 1.1x. Its RSI is 40.9.

Seplat Energy

Seplat makes the cut for its sound fundamentals. The NPR of the oil & gas corporation is 6.3, while the PE ratio is 26.6x. The RSI is 100.

UACN

UACN makes the cut for its sound fundamentals. The NPR of the company is 2.3, while the PE ratio is 25.4x. The RSI is 29.

NEM Insurance

NEM Insurance features on the pick for its strong fundamentals. The insurer’s NPR is 9.6, while the PE ratio is 11.8x. The RSI is 70.4.

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Business

NAICOM Announces Successful Completion of Insurance Sector Recapitalization Exercise

Published

10 hours ago

August 3, 2026

Preport

The National Insurance Commission,(NAICOM), today announced the successful completion of the twelve-month insurance sector recapitalization exercise.

In pursuant to Section 15 and other relevant provisions of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed into law on 31 July 2025 by His Excellency, President Bola Ahmed Tinubu, a as part of his administration’s financial sector transformation agenda towards the attainment of a US$1 trillion economy by 2030.

The successful conclusion of the exercise marks a defining milestone in the transformation of Nigeria’s insurance industry and signals the beginning of a new era for insurance in the country.

It represents a major step towards building a stronger, more resilient, adequately capitalized, professionally governed, and policyholder-focused insurance sector that is better positioned to support national economic growth, deepen financial inclusion, mobilize long-term investment capital, and contribute meaningfully to the stability of Nigeria’s financial system.

Following the enactment of NIIRA 2025, the Commission commenced a structured implementation process to provide strategic oversight, ensure transparency, support operators throughout the transition, and facilitate the effective implementation of the new minimum capital requirements within the statutory compliance period.

To ensure an orderly, transparent, credible, and verifiable process, the Commission issued the Guidelines on the Implementation of Minimum Capital Requirements (MCR) for Insurance and Reinsurance Companies in Nigeria. The Guidelines provided detailed guidance on the statutory minimum capital requirements under NIIRA 2025, eligible and ineligible capital instruments, admissible and non-admissible assets, verification and validation procedures, regulatory timelines, reporting obligations, and supervisory expectations throughout the implementation period.

Through a comprehensive process of review, verification, and validation, the recapitalization exercise has delivered a major boost to the Nigerian insurance industry. It has enhanced the financial resilience of operators, attracted substantial domestic and foreign investment, and rekindled strong investor confidence.

The verified outcome of the exercise indicates that Forty-three (43) insurance and reinsurance companies successfully met the prescribed Minimum Capital Requirements. However, Eight (8) insurance companies that submitted evidence of compliance shortly before the statutory deadline are currently undergoing final verification and regulatory review. This would be concluded within fourteen days.

Nigeria’s insurance industry is now entering a new phase of development founded on stronger capital, improved financial resilience, and enhanced capacity to underwrite larger and more sophisticated risks across strategic sectors of the economy.

The increase in minimum capital will improve insurers’ ability to honour policyholder obligations promptly, absorb emerging risks, support infrastructure and other long-term investments, and compete more effectively within regional and global insurance markets.

The recapitalization exercise also provides a stronger foundation for enhanced risk-based supervision by the Commission, ensuring that regulatory capital remains appropriately aligned with the nature, scale, complexity, and risk profile of each licensed operator.

The Commission reassures policyholders, investors, insurance operators, development partners, and the general public that, as the implementation of NIIRA 2025 continues alongside the modernization of Nigeria’s insurance ecosystem through innovation, technology, and digitization, the Commission will continue to strengthen consumer protection, promote sound market conduct, and accelerate insurance penetration across the country.

Our unwavering commitment remains to build a fair, stable, innovative, inclusive, and globally competitive insurance market that inspires public confidence and delivers lasting value to policyholders and the Nigerian economy.

The Commission will continue to engage stakeholders and provide regular updates on post-recapitalization supervisory actions, companies undergoing final verification, industry restructuring developments, implementation of the Risk-Based Capital Framework, and other strategic initiatives designed to deepen insurance penetration and strengthen confidence in the Nigerian insurance industry.

The National Insurance Commission expresses its profound appreciation to the Federal Government, regulatory and supervisory partners, shareholders, investors, operators, professional bodies, development partners, and all stakeholders whose cooperation and commitment contributed to the successful completion of this historic exercise. The Commission looks forward to even stronger collaboration as Nigeria enters a new era of insurance.

The successful completion of this recapitalization exercise is not the destination but the foundation. It marks the beginning of a new era in which stronger institutions, stronger governance, and stronger public confidence will make insurance work better for every Nigerian.

The post NAICOM Announces Successful Completion of Insurance Sector Recapitalization Exercise appeared first on Business Today NG.