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First HoldCo Plc, the parent company of First Bank of Nigeria Limited and chaired by billionaire businessman Femi Otedola, announced that FirstBank has reached the N500 billion ($346 million) minimum capital base set by the Central Bank of Nigeria (CBN) for banks holding international licenses. Shareholders of FirstHoldCo have signaled readiness to inject further funds into both existing subsidiaries and new business opportunities.
Speaking on the development, Otedola said, “From where I stand, with decades of experience in Nigeria’s financial sector, it is time to raise the minimum capital requirement for international banking licenses from N500 billion ($346 million) to at least N1 trillion ($692 million). A modern economy aiming for the $1 trillion mark cannot rely on banks with fragile capital. Stronger banks mean better governance, wider ownership, and institutions that serve the broader economy rather than individual interests, a challenge we have faced for too long.”
Nigerian banks strengthen capital base
The CBN introduced the recapitalization policy in 2024 to address inflationary pressures, currency volatility, and the need to enable banks to finance larger projects in the real economy. This is the first major recapitalization exercise in nearly 20 years. International banks were required to raise their minimum capital to N500 billion ($346 million). Otedola described the policy as timely, noting that banks posted strong profits in 2024 and must now focus on prudence and operational stability.
Femi Otedola also praised President Bola Ahmed Tinubu for his leadership in guiding Nigeria through critical reforms. “President Tinubu has shown remarkable clarity and courage in implementing policies that are now gaining recognition internationally. I have seen many administrations, but his conviction at this moment deserves commendation. Likewise, Central Bank Governor Yemi Cardoso has been exceptional. The slowdown in inflation is proof of his disciplined return to orthodox monetary policy.”
Otedola praises CBN Governor Cardoso
Otedola added, “These are not abstract results; households and businesses are already feeling the impact. Policy consistency has restored confidence in the foreign exchange market. For the first time in years, the naira is strengthening based on market forces rather than artificial interventions. External reserves have risen to a seven-year high above $46 billion, further evidence of steady leadership.”
On the CBN Governor, Otedola said, “I say this without hesitation: Yemi Cardoso is the best Central Bank Governor Nigeria has produced. His calmness, discipline, and focus on doing what is right set the standard any serious economy needs. Nigeria is turning a corner, and those of us who believe in the country will continue to support these monetary reforms, which are laying the foundation for stronger banks and a more resilient economy.”
