First HoldCo Completes FBNQuest Sale As Nigeria’s Banking Industry Enters New Phase of Restructuring
- Parent company of First Bank, First HoldCo, has announced the sale of its subsidiary to another firm
- According to reports, this will be one of the most notable transactions in the Nigerian banking sector
- The sale of First HoldCo marks a significant milestone in the strategic restructuring of the group
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
First HoldCo Plc has confirmed that it has completed the sale of its entire stake in FBNQuest Merchant Bank Limited to EverQuest Acquisition LLP.
This is one of the most notable corporate transactions in the Nigerian banking sector in recent times and marks a significant milestone in the strategic restructuring of the group.
Source: Getty Images
The confirmation came through a statement released by Abiola Baruwa, the group company secretary.
Baruwa explained that the process was finalised after receiving the necessary regulatory approvals from the Central Bank of Nigeria.
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The announcement brings to a close months of negotiations and regulatory reviews that began in 2024.
Baruwa said the divestment was fully aligned with the Nigerian Exchange Limited Rulebook, which demands notification to the market and the investing public once a transaction of this nature has been concluded.
FBNQuest sale major move in Nigerian banking
The sale is not simply a transfer of ownership and represents a wider strategy by First HoldCo to streamline its operations and strengthen its core banking services.
The parent company of First Bank of Nigeria had earlier disclosed that the divestment was part of a long-term corporate restructuring plan.
The goal is to optimise the group’s portfolio by focusing on its strongest performing financial services and shedding segments that do not directly support its growth vision.
Industry watchers have described the move as a calculated realignment that reflects growing competition in the financial services space.
The Nigerian banking sector is experiencing intense pressure to innovate, expand capital buffers and consolidate operations.
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Against this backdrop, First HoldCo’s decision has been interpreted as a forward-looking strategy to reinforce its market dominance while giving FBNQuest a separate pathway under new ownership.
EverQuest emerges from competitive bid
EverQuest Acquisition LLP, which won the bid after what was described as a competitive selection process, comprises several players in the investment and financial services industry.
According to TheCable, the consortium includes Custodian Investments Plc, Aion Investments, and Evercorp Industries.
The combination of these investors is expected to bring fresh capacity, new strategies and possibly a broader roadmap for FBNQuest’s growth.
The original agreement for the sale was announced in September 2024 and industry analysts have closely followed developments since then.
The completion marks the final stage of that deal and clears the way for EverQuest to take full control.
FBNQuest sale: a transaction that signals change
With the deal completed, FBNQuest will now operate independently of First HoldCo.
For many stakeholders, this represents the beginning of a new chapter for both companies.
EverQuest will inherit a merchant banking structure with a long history and a recognised reputation.
Source: Getty Images
First Bank scrambles to meet CBN's capital
Meanwhile, First HoldCo will proceed with a renewed focus on strengthening its primary banking operations.
The transaction has been described as a major win for both sides and a reflection of how corporate restructuring continues to reshape Nigeria’s financial landscape.
First HoldCo, which is still scrambling to meet the N500 billion capital-raising requirement set by the Central Bank of Nigeria (CBN), may use the funds from the sale to shore up its capital base.
Analysts say Nigeria's oldest financial institution is poised to meet the capital threshold before the March 31, 2026, deadline via private share placements.
First Bank changes name
Legit.ng also reported that First Bank of Nigeria (FBN) Holdings Plc had received approval to change the company’s name to First HoldCo Plc.
The company’s shareholders approved the name change at the 12th Annual General Meeting (AGM), held virtually on November 14, 2024.
In a statement at the time, Adewale Arogundade, the company’s secretary, said that the resolution would apply to each of FBN's subsidiaries.
Proofreading by Bruce Douglas, copy editor at Legit.ng.
Source: Legit.ng
