Another Nigerian Bank Meets CBN's Capital Requirement Ahead of March 2026 Deadline
- First Bank of Nigeria (FirstBank) has met the CBN’s capital requirement of N500 billion
- The bank said the fund was raised from a combination of a Rights Issue and Private Placement
- FirstBank also announced plans to deploy the new capital to support the real sector and also enhance financial inclusion
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
First HoldCo Plc has announced that its commercial banking subsidiary, First Bank of Nigeria (FirstBank), has successfully met the Central Bank of Nigeria’s (CBN) N500 billion minimum capital requirement.
The bank said that a combination of a Rights Issue, Private Placement, and proceeds from the divestment of the group’s merchant banking subsidiary contributed to meeting the capital benchmark.
Source: Getty Images
FirstBank fulfils CBN requirements
In a statement, FirstBank said the CBN has approved its recapitalisation, bringing its total shareholders’ funds above the regulatory benchmark.
The successful capital raise strengthens FirstBank’s financial capacity to support larger transactions, offer more competitive financing solutions, and deliver improved service to clients across sectors.
FirstBank plans to deploy the new capital to accelerate support for the real sector, enhance financial inclusion, and deliver innovative, digitally driven customer experiences.
Femi Otedola, Chairman of First HoldCo Plc, described the capital raise as a major milestone in the group’s growth journey.
He said:
"This is an important step in our growth and shows the hard work and dedication of everyone in the organisation. It puts us in a strong position for the next stage of our expansion. We thank our shareholders for their trust and appreciate the great efforts of our Board and Management.”
Also commenting, Wale Oyedeji, Group Managing Director of First HoldCo, said the recapitalisation reflects the confidence of shareholders and clients in the bank’s long-term vision.
"Our successful capital raise is more than just meeting a regulatory requirement; it shows the trust our shareholders, clients, and partners have in us. This achievement will help us provide better financial solutions and support Nigeria’s economic growth and stability.”
FirstBank said it plans to introduce new initiatives to meet evolving customer needs, including digital banking solutions, loans for small businesses, green finance options, improved wealth management services, and partnerships to create new growth opportunities, Leadership reports.
Source: UGC
CBN capital requirement
The achievement comes at a crucial time for Nigeria’s banking industry, as financial institutions intensify recapitalisation efforts to meet the CBN’s new capital thresholds.
In March 2024, the CBN directed lenders to raise fresh equity to meet higher paid-up capital requirements: N500 billion for international banks, N200 billion for national banks, and N50 billion for regional banks. Non-interest lenders face lower requirements of N20 billion and N10 billion.
19 banks meet CBN requirement
Earlier, Legit.ng reported that the CBN confirmed 14 banks have successfully met the recapitalisation requirements.
CBN Governor Olayemi Cardoso disclosed during the last Monetary Policy Committee (MPC) meeting in Abuja that the financial sector has remained resilient, with most financial soundness indicators within projected benchmarks.
The CBN boss said the financial sector has remained resilient, with most financial soundness indicators remaining within the projected benchmarks.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
