FirstHoldCo Plc, the Lagos-based financial services group and parent company of FirstBank, has secured shareholder approval to advance plans aimed at building a N1 trillion ($730 million) capital base, marking a significant step in the group’s long-term growth strategy.

The approval was granted at the company’s 14th Annual General Meeting held on May 29, 2026, authorizing the board to undertake a multi-tranche capital raising program of up to N253.1 billion ($184.7 million). The exercise may include public offers, private placements, rights issues, bonus issues, scrip dividends and other equity instruments across domestic and international markets.

The proposed fundraising will complement existing capital and support the group’s broader objective of reaching a N1 trillion ($730 million) paid-up capital base, including share capital and share premium.

Strengthening capacity for growth

The move comes as Nigerian banks continue to strengthen their capital positions to support larger transactions, manage risks and meet growing customer demand.

For FirstHoldCo, the additional capital is expected to increase lending and underwriting capacity, strengthen its balance sheet and provide greater flexibility to pursue growth opportunities across key sectors of the economy.

A stronger capital base will also allow the group to participate more actively in large-scale transactions spanning infrastructure, manufacturing, energy and technology, while enhancing confidence among investors, customers and business partners.

The company said the capital program is expected to support expansion across priority markets and business segments, deepen its competitive position among Tier-1 financial institutions and create long-term value for shareholders.

Governance push under Otedola

A central figure in the group’s transformation has been Chairman Femi Otedola, who assumed office in January 2024 and currently holds 8.6 billion shares, representing a 19.36% stake in the company.

Since taking over, Otedola has overseen efforts to strengthen governance, improve board effectiveness and reinforce accountability across the group’s subsidiaries. The company said these reforms have helped improve oversight, transparency and operational discipline.

FirstHoldCo added that Otedola has consistently advocated stronger capitalization within the banking sector, arguing that well-capitalized institutions are better positioned to support economic growth, maintain investor confidence and strengthen financial stability.

Capital supports strategic priorities

The proceeds from the capital raise will be directed toward several strategic priorities, including balance-sheet growth, financing for large corporate clients and infrastructure projects, and investments in technology and digital transformation.

The company also plans to strengthen data capabilities, improve customer experience platforms and support recapitalization across banking and non-banking subsidiaries.

In addition, part of the capital will be used to support expansion into selected regional and international markets while maintaining adequate regulatory buffers.

According to the company, the objective is to ensure that every phase of the capital program contributes to stronger returns, improved resilience and sustainable long-term growth.

Building on recent capital-raising success

FirstHoldCo has already demonstrated its ability to raise capital through a series of successful transactions completed over the past year.

The group raised N83.7 billion ($61 million) and N45 billion ($32.8 million) through private placements completed in December 2025 and March 2026, respectively. Those transactions followed an earlier N149.6 billion ($109.2 million) rights issue and several capital optimization initiatives.

The company has also streamlined operations through strategic divestments, including the sale of FBNQuest Merchant Bank.

The efforts have coincided with stronger financial performance. In the first quarter of 2026, FirstHoldCo reported interest income of N704.5 billion ($514.1 million), up 12.7% from a year earlier, supported largely by growth in private-sector lending. Profit after tax rose 56.5% year-on-year to N267.8 billion ($195.4 million), while annualized return on equity reached 31.6%.

The company attributed the improvement to stronger risk management, successful recovery efforts and the resolution of legacy risk exposures.

Otedola calls strategic milestone

Commenting on the approval, Chairman Femi Otedola said the capital program represents a major milestone for the group.

“The approval by our shareholders to raise up to N1 trillion ($730 million) in capital marks a defining moment in the evolution of FirstHoldCo. This is not merely a capital raise; it represents a strategic repositioning of the group for sustainable growth, stronger governance and long-term value creation,” he said.

Group Managing Director and Chief Executive Officer Wale Oyedeji said the additional capital would provide the flexibility needed to pursue the group’s growth plans.

“Our focus is on disciplined capital deployment across our core businesses, digital transformation initiatives and expansion priorities. We believe this will strengthen our earnings capacity, improve our market position and deliver sustainable returns for shareholders,” Oyedeji said.

With shareholder backing secured, FirstHoldCo said it is focused on executing the capital program and strengthening its position within Nigeria’s financial services industry.

Founded in 1894, FirstHoldCo, formerly known as FBN Holdings Plc, is one of Africa’s largest financial services groups, with operations spanning commercial banking, merchant banking, capital markets, trusteeship and insurance brokerage.