Connect with us

Business

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

info

Published

on

Admin ajax 1 1.jpg

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.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Police Arrest of Five Suspected Telecommunication Vandals, Recovery of Truckload of Suspected Stolen Iron Rods

info

Published

on

By

BY SUNDAY SAMUEL—The Lagos State Police Command has arrested five (5) suspected telecommunication vandals and recovered a truckload of suspected stolen iron rods in the Ibeju-Lekki axis of the State, as part of its intensified efforts to curb the vandalism and theft of critical infrastructure across Lagos.

The suspects, namely Mohammed Shaibu, ‘m’, 26 years; Musa Zakari, ‘m’, 29 years; Abdullahi Bala, ‘m’, 22 years; Salisu Musa, ‘m’, 18 years; and Yahuza Bala, ‘m’, 20 years, were allegedly caught stealing iron poles meant for the construction of telecommunication masts. They were subsequently arrested while conveying the allegedly stolen iron rods in a truck.

The suspects are currently in Police custody, while the case is being investigated at the State Criminal Investigation Department (SCID), Yaba. Discreet investigation is ongoing to apprehend other fleeing suspects and unravel the full extent of their activities.

The Command appreciates the 81 Division, Nigerian Army, for its robust synergy and cooperation, which contributed significantly to the successful operation and arrest of the suspects.

The Commissioner of Police, Lagos State Command, CP Tijani Fatai, psc, mnips, has reiterated the Command’s resolve to protect critical infrastructure and bring perpetrators of vandalism to justice. He also urged residents to promptly provide credible information on suspicious activities within their communities.

Members of the public are encouraged to report emergencies and suspicious activities through the Lagos State Police Command emergency lines: 07061019374, 08065154338, 08063299264, 08039344870, 08080193432 (Marine), and 09168630929.

The post Police Arrest of Five Suspected Telecommunication Vandals, Recovery of Truckload of Suspected Stolen Iron Rods appeared first on Business Today NG.

Continue Reading

Business

CPPE backs FG reforms, urges shift from economic stability to productivity

info

Published

on

By

468939862 570688608903404 8583644854384931658 n.jpg

MTN ADVERT

The Centre for the Promotion of Private Enterprise (CPPE) has backed the Federal Government’s economic reform programme, saying the measures have produced measurable improvements in Nigeria’s fiscal and macroeconomic position.

The group, however, said the gains would have limited meaning unless they translate into higher productivity, increased investment, more jobs and improved living standards for Nigerians.

The CPPE made the position known in a statement issued by its Chief Executive Officer, Muda Yusuf, on Sunday, five days after the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, presented the Federal Government’s economic reform scorecard.

The scorecard, presented on 19 August in Abuja, assessed the benefits, costs and potential harms prevented by the reforms introduced by President Bola Tinubu’s administration.

The reforms, which include the removal of the petrol subsidy and changes to the foreign exchange market, have significantly altered Nigeria’s fiscal and economic landscape since June 2023.

PT WHATSAPP CHANNEL

While the government said the measures have strengthened public finances, improved foreign exchange stability, and restored investor confidence, they have also increased the cost of living and of doing business, with Nigerians continuing to contend with high food, energy, and financing costs.

Mr Yusuf said the government’s disclosure of the reform outcomes was important because transparency was necessary to build public confidence in the measures.

“Such transparency is critical to reform credibility,” he said, while welcoming what he described as the minister’s balanced acknowledgement of both the gains and adjustment costs of the reforms.

‘Stability must translate to better lives’

According to the CPPE, the reforms have delivered improvements in government revenue, foreign exchange market stability, external reserves, trade balance and investor confidence.

It noted that Nigeria’s real Gross Domestic Product growth strengthened to 3.89 per cent in the first quarter of 2026, from 3.13 per cent in the corresponding quarter of 2025.

However, Mr Yusuf said improved economic indicators should not become the ultimate measure of the reforms.

“Macroeconomic stability is a means, not an end.”

“The real test is whether stability translates into higher productivity, stronger investment, more jobs, lower poverty and improved living standards.”

He added that the transition remained incomplete, noting that households continued to face pressure on their purchasing power while businesses were dealing with high energy, financing, logistics and regulatory costs.

The CPPE therefore urged the government to make productivity and competitiveness the focus of the next phase of its reform programme.

The call comes against the background of the government’s own admission that household welfare remains an unfinished aspect of the reforms.

At the presentation of the scorecard, the minister acknowledged that the reforms had imposed high costs on Nigerians, including higher petrol prices and interest rates.

He said the Monetary Policy Rate had risen from 18.5 per cent in May 2023 to 26.5 per cent, while petrol prices increased from about N185 per litre before subsidy removal to between N1,100 and N1,400.

He also noted that poverty and household welfare recovery remained areas where the government could not yet claim victory.

States must show what higher revenues are achieving

The CPPE also raised concerns about how the increased fiscal resources available to state governments are being utilised.

It said the reforms had substantially expanded the fiscal space of state governments through increased statutory allocations and, in some cases, stronger internally generated revenue.

Mr Yusuf noted that the additional resources should result in visible improvements in public services.

“Citizens should demand measurable outcomes in roads, healthcare, public transportation, education, agricultural infrastructure, security, power and enterprise support,” he said.

He warned that higher revenues should not simply finance increased recurrent expenditure and prestige projects.

“Higher revenues must produce a visible development and welfare dividend.”

In its reform scorecard, the Federal Government said N15.8 trillion in subsidy savings accrued to the Federation between June 2023 and December 2025.

Of that amount, N5.4 trillion went to the Federal Government, while state and local governments shared N10.4 trillion.

The CPPE said the increased fiscal space should therefore be reflected in better development outcomes at the subnational level.

Electricity, logistics, and financing remain major obstacles

Mr Yusuf said the government’s next reform priority should be the supply side of the economy, particularly the structural constraints that continue to make production expensive in Nigeria.

He identified electricity, logistics, insecurity, agricultural productivity, infrastructure, regulatory costs and access to affordable capital as major constraints to businesses.

The CPPE pointed to the contraction of the electricity sector by 15.3 per cent in the first quarter of 2026, compared with growth of 3.29 per cent in manufacturing and 3.15 per cent in agriculture.

It said stronger growth in the productive sectors would require a deliberate reduction in the cost of these critical inputs.

The group also called for a trade policy that protects industries and agricultural producers with genuine local capacity from unfair import competition, while ensuring that producers can access critical inputs that are not sufficiently available locally.

Mr Yusuf also raised concerns about the prevailing high-interest-rate environment.

He said that as inflation moderates, stronger coordination between fiscal and monetary authorities should create room for a gradual reduction in financing costs without undermining macroeconomic stability.

CPPE warns against reversing reforms

Despite its concerns about the costs and implementation of the reforms, the CPPE said reversing them would be damaging to the economy.

READ ALSO: Tinubu’s reforms yielding results, GDP rises to $375bn — Yilwatda

Mr Yusuf said abandoning the reform trajectory could undermine investor confidence, weaken fiscal stability and destabilise the foreign exchange market.

“Reversing the reforms would be profoundly damaging to the economy.”

He, however, called for the government to continuously adjust the reform instruments based on evidence, implementation experience and their impact on businesses and households.

“The reform trajectory should therefore be sustained, while implementation is continuously refined in response to emerging realities,” he said.

According to the CPPE, the next phase of the reforms should move decisively from economic stabilisation to productivity, while ensuring that higher government revenues translate into better development outcomes and that improving macroeconomic indicators eventually result in higher incomes, more jobs and better living standards.


Discover more from Premium Times Nigeria

Subscribe to get the latest posts sent to your email.

Continue Reading

Trending