Femi Otedola, chairman of First HoldCo Plc, has assured that the Nigerian financial institution will recover from a severe profit decline, attributing the setback to the absorption of legacy bad loans as part of a necessary restructuring effort.
In a statement on his X account, Otedola reaffirmed his commitment to guiding First HoldCo through a transformative phase, following the company’s disclosure that profit crashed by 92 percent in the 2025 financial year after absorbing N748 billion in old non-performing loans. This significant reduction reflects a deliberate balance sheet clean-up, a common strategy for banks to address historical weaknesses but one that drastically impacts short-term earnings. Otedola characterized the current period as difficult yet essential for rebuilding long-term sustainability.
The restructuring involves dismantling weak structures and faulty foundations to construct a more robust framework for all stakeholders. Otedola noted that such an overhaul in a major financial entity inevitably brings disruptions, including both “pleasant and unpleasant surprises,” as old systems are replaced. He emphasized that the reforms are anchored on core principles of transparency, accountability, and the creation of enduring value.
First HoldCo Plc, the parent company of First Bank of Nigeria, is a cornerstone of West Africa’s financial sector with extensive assets and a century-long history. The bank, like many in Nigeria, has faced persistent challenges with asset quality, exacerbated by economic volatility and past recessions. The absorption of large-scale bad loans aligns with regulatory pushes to strengthen banking systems, though it tests investor confidence in the near term.
Otedola personally underscored his unwavering dedication, stating, “I remain grounded in our pursuit to build a world-class financial institution without distractions, whilst my commitment to continue to invest my all remains unflinching.” He pledged ongoing financial and operational support to ensure the process completes successfully.
The outcome of First HoldCo’s restructuring holds broader implications for Nigeria’s banking landscape, where stability depends on resolving legacy asset issues. Otedola’s public reassurance aims to maintain stakeholder trust during this pivotal transition, highlighting a strategic shift toward a more resilient and sustainable operational model for the future.
