Nigerian billionaire Femi Otedola's First HoldCo completes $32.8 million capital raise

First HoldCo Plc, the banking group chaired by Nigerian billionaire Femi Otedola, has completed the second tranche of its private placement programme, raising N45 billion ($32.8 million) at N44.06 ($0.032) per share and pushing the group closer to a self-imposed N1 trillion ($729.4 million) capital target for its flagship subsidiary, First Bank of Nigeria.

The company notified the Nigerian Exchange Limited that it had secured all required approvals from the Central Bank of Nigeria and the Securities and Exchange Commission for the tranche, part of a broader N350 billion ($255.3 million) private placement programme shareholders approved at FirstHoldCo's 13th annual general meeting in May 2025. The proceeds will be injected directly into First Bank as part of its ongoing capital restoration plan.

With this tranche, FirstHoldCo has now injected approximately N270 billion ($196.9 million) into First Bank, moving the lender toward the N500 billion ($364.7 million) minimum capital threshold the Central Bank of Nigeria has mandated for banks with international authorisation ahead of a March 31, 2026 deadline. The group says it remains committed to raising the outstanding N221 billion ($161.2 million) needed to complete the N350 billion ($255.3 million) programme in full.

The capital push goes further than simply meeting the regulatory deadline. At FirstHoldCo's 14th annual general meeting on May 29, 2026, shareholders approved a plan to strengthen the company's paid-up share capital all the way to N1 trillion ($729.4 million), a target that sits well above the central bank's baseline requirement and signals an intention to compete from a position of strength rather than minimum compliance.

Otedola, who chairs FirstHoldCo, thanked shareholders for backing both the completed raise and the broader N1 trillion ($729.4 million) ambition. "We are deeply grateful to our shareholders for their continued confidence and support, demonstrated both in the successful completion of this capital raise and in their gracious approval at the 14th Annual General Meeting held on May 29, 2026, for the additional capital to be raised to take the paid-up capital of FirstHoldCo to N1 trillion," he said. "Their support reflects a shared conviction in the strength of our franchise, the resilience of our business model, and the significant opportunities ahead for FirstHoldCo."

Group Managing Director Wale Oyedeji said the completed tranche reflects investor confidence in the group's direction. "The successful completion of this N45 billion ($32.8 million) tranche is a strong endorsement of FirstHoldCo's strategic direction, franchise strength, and the confidence investors continue to place in our long-term value proposition," he said. "This injection into FirstBank is both timely and strategic. It further strengthens the Bank's capital base, enhances balance sheet capacity, and positions the franchise to accelerate growth across key businesses while remaining anchored on prudence, resilience, and disciplined execution."

The capital raise lands against a backdrop of strong operating numbers. FirstHoldCo reported a 72.2 percent year-on-year increase in profit before tax to N321 billion ($234.1 million) in the first quarter of 2026, while gross earnings rose 27 percent on the back of growth in both interest income and non-funded revenue streams. Customer deposits stood at N18.4 trillion ($13.4 billion), with First Bank Nigeria's current and savings account ratio at 93.8 percent, a figure the group points to as evidence of the depth and quality of its deposit base.

Otedola became chairman of FirstHoldCo, formerly FBN Holdings, in January 2021 after acquiring a significant stake in the company, and has since presided over a sustained recapitalisation effort at First Bank, one of Nigeria's oldest and largest commercial banks. The push to raise capital well beyond the regulatory floor positions FirstHoldCo among the Nigerian banking groups moving earliest and most aggressively to build the kind of balance sheet capacity needed to compete for the corporate, retail and cross-border banking opportunities the Central Bank of Nigeria's 2026 recapitalisation directive was designed to unlock across the industry.

Oyedeji said the group intends to keep that momentum going. "As we continue to execute FirstBank's capital restoration plan, we remain focused on disciplined capital management, operational efficiency, and unlocking the full earnings potential of our businesses," he said. "The actions we are taking are deliberate, forward-looking, and value accretive."