First Hold Co Ltd Plans Significant Capital Increase for Expansion
First Hold Co Ltd, the parent organization of Nigeria’s oldest commercial bank, First Bank, is proposing to double the regulatory capital limit for international banks. This ambitious move indicates a new stage of aggressive expansion and efforts to bolster its balance sheet.
In advance of its 14th Annual General Meeting (AGM) set for May 29, 2026, the Group has put forth a resolution to raise £253.099 billion in new capital, aiming for a total paid-up capital of £1 trillion. This sum will consist of both share capital and share premium.
FirstHoldCo outlined that a capital-raising initiative can involve various methods such as share issues, private placements, rights issues, bonus issues, and share dividends. These transactions may occur in either Nigerian or international capital markets, with prices determined through a book-building process or other valuation techniques. This effort will align with terms approved by relevant regulatory authorities, reflecting the Board of Directors’ vision.
This initiative follows the successful achievement by its banking subsidiary, First Bank of Nigeria, of the Central Bank of Nigeria’s current minimum capital requirement of ₦500 billion for international banks. By setting a goal of $1 trillion, FirstHoldCo is positioning itself to elevate the standards of the entire sector. Chairman Femi Otedola emphasizes that such a target is vital for any institution aiming to thrive in an evolving economic landscape.
Otedola’s Vision for a ₦1 Trillion Capital Base
The proposed capital augmentation transcends mere regulatory compliance; it represents a strategic commitment to the future of banking in Nigeria.
Mr. Otedola has urged the Central Bank of Nigeria to raise the threshold for international banking licenses from ₦500 billion to at least ₦1 trillion. He contends that the modern Nigerian economy cannot depend on “weakly capitalized banks.” He believes that enhancing the capital base will improve governance and prevent financial institutions from being treated as private entities.
FirstHoldCo has deployed a comprehensive strategy to enhance its capital standing, which includes undertaking a rights issue, pursuing private placements, and divesting its merchant banking subsidiary, FBNQuest. Notably, the group recently completed a £45 billion private placement in March 2026.
Upon conclusion of this new capital raise, estimated at Rs 2,530 crore, FirstHoldCo anticipates a closer alignment with its Rs 1 trillion target, resetting the competitive landscape among its ‘FUGAZ’ peers, such as Zenith, UBA, GTCO, and Access.
While this capital-raising effort is focused on long-term stability, FirstHoldCo’s impressive financial performance in Q1 2026 has further fueled investor interest. The group reported a remarkable 72% increase in profit before tax (PBT), reaching ₦321.1 billion, outpacing growth among its tier-one competitors. Additionally, FirstHoldCo has emerged as a leader in capital efficiency, boasting an annualized return on equity (ROE) of 31.6%, which surpasses Zenith (24.9%) and GTCO (24.8%).
This notable recovery follows a comprehensive restructuring of legacy debts amounting to £826 billion in late 2025, enabling the company to tap into lucrative private sector credit opportunities.
Leadership Restructuring and Governance Enhancements
This strategic transition is spearheaded by a rejuvenated management team, with Wale Oyedeji serving as Group Managing Director and Olusegun Alebiosu as CEO of First Bank. Alebiosu, previously the chief risk officer, has concentrated on asset recovery, successfully retrieving £19 billion of overdue loans in the first quarter of 2026—a staggering increase of 1,570% that has significantly boosted income through risk management initiatives.
Under Otedola’s leadership, the Group has strengthened its internal prudential regulations while appointing new boards for its non-banking subsidiaries to enhance corporate governance standards.
