FirstBank achieves CBN’s N500bn capital threshold ahead of March deadline

First HoldCo Plc has announced that its flagship subsidiary, First Bank of Nigeria Limited (FirstBank), has successfully met the Central Bank of Nigeria’s (CBN) minimum regulatory capital requirement of N500 billion, strengthening its balance sheet well ahead of the industry recapitalisation deadline.

The disclosure was contained in a statement signed by the Group Company Secretary, Abiola Baruwa, and filed with the Nigerian Exchange Limited (NGX).

The development comes as commercial banks across the country intensify efforts to comply with the CBN’s revised capital thresholds introduced in 2024.

In the statement issued on Monday, First HoldCo confirmed that the milestone was achieved through a combination of carefully executed funding strategies.

“First HoldCo Plc today announces that its commercial banking subsidiary, First Bank of Nigeria Limited, has successfully met the Central Bank of Nigeria’s minimum capital requirement of N500 billion,” the Group stated.

According to the holding company, the recapitalisation was completed through a mix of market-based and balance-sheet initiatives, including a Rights Issue, a Private Placement, and the injection of proceeds from the divestment of the Group’s merchant banking subsidiary.

“This milestone was achieved following the completion of a series of strategic capital initiatives,” the Group said, noting that the strengthened capital base significantly enhances its financial resilience and long-term growth outlook.

First HoldCo added that the successful recapitalisation positions the Group to pursue earnings expansion through business growth, technology-driven innovation, and new opportunities across its core markets.

“The recapitalisation strengthens the Group’s overall financial resilience, providing a robust platform for earnings growth through business expansion, technological innovation, and the pursuit of new opportunities,” the statement added.

A Lagos-based banking analyst noted that meeting the capital requirement ahead of schedule reduces regulatory pressure and allows management to focus on growth initiatives.

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“Early compliance with the N500 billion threshold gives FirstBank a competitive edge. It improves investor confidence and provides flexibility to pursue expansion and digital transformation without the distraction of capital adequacy concerns,” the analyst said.

Another financial market expert described the move as a positive signal for the banking sector.

“The recapitalisation programme is not just about meeting regulatory numbers; it’s about building stronger banks that can finance the economy and withstand shocks. FirstBank’s approach reflects that broader objective,” he said.

The figure marked an improvement from the 14 banks recorded at the previous MPC meeting in September, signalling what the apex bank described as growing compliance and strengthening balance sheets across the sector.

With FirstBank now joining the ranks of compliant lenders, analysts say the industry appears to be on a steady path toward meeting the March 2026 deadline, reinforcing confidence in Nigeria’s banking system and its ability to support long-term economic development.