First HoldCo Plc, the holding company of First Bank of Nigeria, has proposed to its shareholders a plan to raise up to N253.099 billion in new equity capital. This capital is aimed at helping the group achieve its ambitious goal of reaching a N1 trillion paid-up capital base, which would significantly surpass the Central Bank of Nigeria’s current minimum requirement of N500 billion for international banking licenses.
The proposal will be put to a vote at the company’s 14th Annual General Meeting (AGM), scheduled for May 29, 2026. A notice filed with the Nigerian Exchange (NGX) outlines a series of resolutions that would empower the board to pursue the capital increase through various mechanisms. These could include public offerings, private placements, rights issues, bonus issues, scrip dividends, or other equity instruments. The board will have the discretion to determine the pricing method, which may involve a book-building process, alternative valuation techniques, or a combination of both.
If approved, the capital raise could be executed in one or more transactions, potentially divided into tranches or series as determined by the board, and will be subject to necessary regulatory clearances. This flexibility indicates the company’s intention to tap into both domestic and international capital markets, thereby broadening its investor base and enhancing liquidity.
Achieving a N1 trillion paid-up capital base would position First HoldCo alongside its peers, such as Zenith Bank, United Bank for Africa, Guaranty Trust Bank, and Access Holdings. This strategic move is expected to strengthen the company’s balance sheet in anticipation of increased competition in regional and cross-border banking activities. The influx of fresh equity is likely to improve capital adequacy ratios, support loan growth, and provide a buffer against macroeconomic volatility.
Industry observers note that this initiative comes at a time when Nigerian banks are striving to bolster their capital structures in response to tighter supervisory standards and heightened competition from fintech companies. The additional capital could also enable First HoldCo to expand its digital banking platform, enhance funding for small- and medium-sized enterprise lending, and pursue strategic acquisitions within West Africa.
Shareholders will receive detailed information regarding the proposed capital raising in the AGM circular, which will include the intended use of proceeds, the timeline for issuance, and the regulatory approvals required. The board will also present an updated financial outlook that reflects the anticipated impact of the capital raise on earnings per share and return on equity.
The outcome of the AGM is expected to attract significant attention from market participants, rating agencies, and foreign investors, all of whom view capital adequacy as a crucial indicator of a bank’s resilience. A successful approval could lead to a re-rating upgrade and lower the company’s cost of capital, while also signaling confidence in the growth prospects of the Nigerian banking sector.
First HoldCo’s request for shareholder approval marks a significant step toward consolidating its capital position and aligning with the regulatory framework governing international banking operations in Nigeria. The coming weeks will be critical in determining whether the board secures the necessary support to proceed with the N253 billion capital raise, thereby laying the groundwork for the group’s long-term strategic objectives.
