First Bank Pushes Ahead with Recapitalisation, Raises ₦187.6bn as Deadline Looms

First Bank of Nigeria Holdings Plc (FBN Holdings), parent company of First Bank, has intensified efforts to meet the Central Bank of Nigeria’s (CBN) recapitalisation directive, which requires lenders with international authorisation to shore up their paid-up capital to a minimum of ₦500 billion by March 31, 2026.

The apex bank’s recapitalisation policy, introduced in March 2024, aims to strengthen the resilience of Nigeria’s banking sector and ensure lenders are better positioned to withstand shocks. While several tier-one lenders such as Access Bank, Zenith Bank, and Guaranty Trust Holding Company (GTCO) have already crossed the finish line, First Bank is still in the process of bridging its capital gap.

Rights Issue and Fundraising Strategy

To comply with the regulatory requirement, FBN Holdings launched a ₦150 billion rights issue as part of a broader fundraising strategy. Reports confirm that the bank has already raised ₦187.6 billion in the first phase of its capital-raising programme.

Beyond the rights issue, First Bank has lined up additional plans to raise about ₦350 billion through private placements, a move expected to significantly bolster its capital base. The combined efforts are designed to place the bank firmly on course to meet the CBN’s ₦500 billion minimum before the 2026 deadline.

Challenges Along the Way

Despite its progress, First Bank has had to grapple with regulatory and financial hurdles. One key issue is a Single Obligor Limit (SOL) breach, largely tied to its foreign-currency loan exposures. This challenge has been compounded by naira devaluations in recent months. However, management is confident that the ongoing recapitalisation will provide the cushion needed to stabilise the bank’s balance sheet and restore regulatory compliance.

Outlook

Industry analysts suggest that with the funds already secured and further injections underway, First Bank is on track to meet its recapitalisation target. Still, the bank remains under pressure to accelerate its fundraising, given the scrutiny surrounding the March 2026 deadline and the competitive advantage already secured by its peers.

The coming months will be critical for FBN Holdings as investors, regulators, and customers watch closely to see if one of Nigeria’s oldest financial institutions can successfully scale the recapitalisation hurdle.