One of the leading financial institutions in the country, First Holdco Plc, has confirmed that its banking subsidiary, First Bank of Nigeria, has met the capital base for tier-1 lenders set by the Central Bank of Nigeria (CBN).
The central bank asked banks in Nigeria to shore-up their capital base from N25 billion to a new threshold, depending on their scope of coverage.
They were given till March 31, 2026, to meet the new regulatory capital requirement, with options to merge if necessary.
For First Bank and its peers, which also operate outside Nigeria, they were asked to raise their capital base to N500 billion, while those with national licence must get at least N200 billion. Regional banks must have N20 billion, non-interest banks with national licence are to raise capital base to N20 billion, while regional non-interest lenders must get N10 billion.
Last week, the company achieved this threshold and has informed the regulator of this.
In a notice to the Nigerian Exchange (NGX), First Holdco disclosed that its commercial banking arm reached this milestone through the completion of a series of strategic capital initiatives, including a rights issue, a private placement, and the injection of proceeds from the divestment of the group’s merchant banking subsidiary.
“The recapitalisation strengthens the group’s overall financial resilience, providing a robust platform for earnings growth through business expansion, technological innovation, and the pursuit of new opportunities,” a part of the statement said.