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The parent company of First Bank of Nigeria (FBN) Limited, First HoldCo Plc, has announced that the commercial bank has officially met the minimum regulatory capital requirement of ₦500 billion set by the Central Bank of Nigeria (CBN) for banks with international licenses ahead of the March 31, 2026, recapitalization deadline. This milestone was confirmed in a regulatory filing on the Nigerian Exchange Limited (NGX) by the Group Company Secretary, Abiola Baruwa.
FirstBank was able to achieve this recapitalization through the implementation of a combination of strategic financial measures, including "right issues" that allowed the bank to offer existing shareholders the option to buy additional shares, "private placement," which involves selling shares directly to selected investors, and "proceeds from divestment," funds injected from selling its merchant banking subsidiary, the HoldCo company said.
Notably, CBN’s recapitalization program was announced in 2024, and since then, Nigerian banks have been racing to comply with the apex bank’s capital thresholds. Under the policy, banks with international licenses must reach ₦500 billion minimum capital, banks with national licenses must have ₦200 billion, regional banks need ₦50 billion, and non-interest banks have their own thresholds.
The goal is simple: CBN increases the minimum capital for the purpose of enhancing the stability of the financial system and supporting large-scale financing and economic growth. Meeting this requirement before the deadline also signals strong compliance and positions FirstBank well for future growth. Now, FirstBank has secured its position as a well-capitalized Tier-1 lender, strengthening its financial resilience and competitiveness in Nigeria and internationally.
According to the CBN, around 16 banks had met their targets by late 2025, and that number has continued to grow as the deadline approaches. Meanwhile, it's important to note that as FirstBank now meets the minimum capital requirement, GTCO has, in fact, been compliant with this threshold for some time through its banking subsidiary, Guaranty Trust Bank Ltd.
However, because GTCO operates as a financial holding company, it must continuously ensure that its paid-up share capital remains at least equal to the aggregate regulatory capital of all its subsidiaries because CBN Guidelines for Licensing and Regulation of Financial Holding Companies mandate that a HoldCo must maintain minimum paid-up share capital that is at least equal to the combined regulatory capital of its regulated subsidiaries.
So, as GTB and other subsidiaries grow, the HoldCo company of the bank (GTCO) has to raise ₦10 billion through a private placement to comply with the CBN Guidelines for Licensing and Regulation of Financial Holding Companies. FirstBank's parent company, First HoldCo Plc, operating under the HoldCo structure, will eventually face the same need to rebalance capital at its holding company level as well. It remains to be seen yet, but only time will tell.
