Shareholders of First HoldCo Plc, parent company of Nigeria’s oldest bank FirstBank, have approved a ₦1 trillion paid-up capital base at the group’s 14th Annual General Meeting, marking what Chairman Femi Otedola described as “a defining moment” in the group’s long-term strategy.

The resolution was passed at the AGM held virtually on 29 May 2026, authorising the FirstHoldCo Board to undertake a multi-tranche capital raising programme of up to ₦253.099 billion. The funds will be raised through a combination of public offers, private placements, rights issues, bonus issues, scrip dividends, or other equity instruments in domestic and international capital markets.

Doubling regulatory minimum to ₦1 trillion

The ₦1 trillion target, comprising share capital and share premium, is double the Central Bank of Nigeria’s current ₦500 billion minimum capital requirement for banks with international authorisation. FirstBank had already met the CBN’s ₦500 billion threshold months before the AGM.

Otedola told shareholders the move is “not a routine regulatory response, but a deliberate investment in future competitiveness, profitability, and market leadership”. He has repeatedly argued that Nigeria’s ambition to build a $1 trillion economy cannot be achieved with weakly capitalised financial institutions.

“The approval by our shareholders to raise up to ₦1 trillion in capital marks a defining moment in the evolution of FirstHoldCo. This is not merely a capital raise; it represents a bold strategic repositioning of the Group for sustainable growth, stronger governance, and long-term value creation,” Otedola stated at the meeting.

Strategic reset and balance sheet fortification

The capital programme accelerates FirstHoldCo’s pathway to a ₦1 trillion base while preserving flexibility to optimise timing, structure and investor participation. The group said stronger capital “enhances resilience, expands lending and underwriting capacity, improves strategic flexibility, and positions FirstHoldCo to capture opportunities that materially strengthen earnings power and long-term franchise value”.

The ₦253.099 billion raise is the final and largest tranche needed after the group completed a ₦45 billion private placement in March 2026, conducted a rights issue, and divested its FBNQuest merchant banking subsidiary as part of its balance sheet strengthening programme.

Group Managing Director/CEO Wale Oyedeji said the capital programme “provides the financial strength and flexibility required to accelerate our strategic ambitions. Our focus is on disciplined and value accretive deployment of capital across our core businesses, digital transformation initiatives, and expansion priorities”.

Positioning for Nigeria’s $1 trillion economy

By targeting ₦1 trillion, FirstHoldCo is positioning itself to lead an industry-wide “up-tiering” that Otedola argues is essential for institutions operating in an economy striving for a $1 trillion GDP. The higher capital base will enable larger deal tickets, stronger syndicated lending capacity, and a more credible balance sheet to compete with South African, Kenyan and international lenders.

The move also sets a competitive benchmark that could pressure FUGAZ peers – Zenith Bank, UBA, GTCO and Access Holdings – into their own fresh capital raises.

Strong financial momentum

The capital ambition is underpinned by strong financial performance. FirstHoldCo recorded 72% year-on-year growth in Profit Before Tax to ₦321.1 billion in Q1 2026, alongside an industry-leading Return on Equity of 31.6% annualised. As of Q1 2026, total share capital and share premium stood at ₦480.6 billion.

The approval, subject to regulatory authorities, gives the board flexibility to determine tranches, pricing and terms through book building or other valuation methods. For shareholders, the message is clear: “stronger capital creates stronger possibilities”.