By Chioma Obinagwam
In a major boost to Nigeria’s banking sector, First Bank of Nigeria (the commercial arm of First HoldCo Plc) has successfully met the Central Bank of Nigeria’s (CBN) ₦500 billion minimum capital requirement for international license banks. Chairman Femi Otedola announced this milestone on January 1, 2026, well ahead of the March 31, 2026 deadline from the CBN’s recapitalization programme initiated in March 2024. This achievement enhances sector resilience against economic pressures and supports increased lending for national growth.
How First Bank Achieved ₦500 Billion Capital Compliance
First Bank attained the threshold via internal accruals, shareholder contributions, and strategic equity injections. The success ties closely to Otedola’s late December 2025 divestment of his controlling stake in Geregu Power Plc for about ₦1.088 trillion ($750 million), with proceeds strengthening First HoldCo’s position. Otedola now holds approximately 17% as the largest individual shareholder. He commended President Bola Tinubu and CBN Governor Yemi Cardoso for reforms stabilizing the naira and raising reserves above $46 billion, while proposing an increase to ₦1 trillion for international licenses to align with a $1 trillion economy goal.
Femi Otedola’s Pivotal Role in the Recapitalization
Otedola, chairman since 2024, has spearheaded governance improvements and operational efficiency at First Bank. His transition from energy—exiting Geregu after building it into a profitable listed company—to banking leadership highlights strategic focus. This contrasts with prior control disputes, such as Oba Otudeko’s tenure marred by governance challenges.
Other Banks Meeting CBN Recapitalization Requirements 2026
Nigeria has around 24-26 commercial banks, with the CBN reporting 16 fully compliant by late 2025, including several for lower thresholds. Compliant banks include Access Holdings, Zenith Bank, GTBank, United Bank for Africa (UBA), Ecobank Nigeria, Stanbic IBTC, Wema Bank, Jaiz Bank, Lotus Bank, Providus Bank, Greenwich Merchant Bank, Premium Trust Bank, Globus Bank, Citibank Nigeria, Nova Bank, and others like Sterling Bank nearing approval. This reflects robust investor confidence and sets the stage for sector consolidation.
First Bank’s Repositioning and Impact on Nigerian Banking Sector
The strengthened capital enables First Bank to boost lending in SMEs, infrastructure, and digital banking, reclaiming its historical leadership. Across the sector, recapitalization improves risk management, foreign exchange stability, and foreign investor appeal, promoting fewer, more robust banks for large-scale project financing.
First HoldCo Latest Financials and Share Price Performance
Unaudited nine-month results to September 30, 2025, show strong growth with significant year-on-year increases in gross earnings from interest and non-interest income. Profit before tax improved markedly due to efficiencies and lending expansion, while assets grew on higher deposits and loans. Full-year 2024 audited figures reported gross earnings over ₦3.2 trillion and profit before tax above ₦780 billion, sustaining positive momentum. As of January 2, 2026, First HoldCo Plc shares (ticker: FIRSTHOLDCO on NGX) closed at ₦48.80, up 1.88%, driven by optimism around recapitalization and Otedola’s stewardship.
X Reactions to First Bank ₦500bn Capital Raise
Confiance News gathered that the story of the compliance sparked discussions on X about Otedola’s impact and First Bank’s revival prospects. Genevieve Mbama (@Gviev) posted:
“Interesting … First Bank has finally completed the N500B Capital raise after Femi Ote$ sold off his stake in Geregu Power and injected into First Bank shares…. Safe to conclude that Femi Ote$ is now the majority shareholder and core investor in FBN… Some light years ago it was Oba Otudeko of Honeywell….before he allowed personal interest override corporate good and ended up loosing out .. Let’s see how the new core investor helps to propel First Bank to its past glory.”
This highlights curiosity about the Geregu-First Bank fund shift, positions Otedola as dominant, contrasts with Otudeko’s exit due to alleged personal priorities, and conveys cautious optimism for restoration. Other users expressed positive views, with Sir Nelson (@Crypto_Diet) noting strategic fund redirection and potential dominance, Toby.
(@TomolaGroup) calling it a “Power Move” toward financial leadership, and sources like A. Ayofe (@abdullahayofel) and TheCable (@thecableng) amplifying reform praises.
Analysts discussed broader sector advancements and possible further mergers.
Confiance News reports that a fortified banking sector reduces MSME borrowing costs, spurs job growth, and draws foreign direct investment. It aligns with national objectives by funding energy, agriculture, and infrastructure, amplifying GDP effects and establishing Nigeria as Africa’s financial center—shifting from vulnerability to enduring strength.
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