January 04, (THEWILL) — FirstBank, the commercial banking arm of First HoldCo Plc, has met the ₦500 billion minimum capital base required by the Central Bank of Nigeria (CBN) for an international banking licence. This is coming ahead of the March 31, 2026, deadline set by the apex bank for banks to meet the target date as specified for their various categories.
Billionaire investor Femi Otedola and chairman of First HoldCo Plc, disclosed this in a media interaction where he unleashed a bold call for the CBN to double the minimum capital requirement for international banking licences from ₦500 billion to at least ₦1 trillion.
In the recent statement, Otedola praised President Bola Tinubu‘s economic reforms and hailed the CBN Governor, Yemi Cardoso, as the “best Central Bank Governor Nigeria has ever produced.” He commended Tinubu’s courage in implementing tough but necessary policies, noting global recognition for the administration’s direction.
Otedola highlighted Cardoso’s disciplined return to orthodox monetary policy, crediting him for slowing inflation, stabilising the foreign exchange market, and rebuilding external reserves to a seven-year high above $46 billion.
The businessman described the naira’s strengthening through market forces as a powerful signal of correct policy direction.
He defended the ongoing banking sector recapitalisation, arguing it was criticised prematurely but has proven essential for supporting real-sector lending and sustainable growth.
Otedola contended that a Nigeria aspiring to a $1 trillion economy requires strongly capitalised banks with better governance and broader ownership, free from being treated as personal estates.
Industry experts have commended the N500 billion successful recapitalisation of FirstBand, the flagship subsidiary of First HoldCo Plc under Otedola’s leadership, as a remarkable milestone in the positive turnaround the bank had attained some years past.
Noting that shareholders remain committed to injecting further capital into existing subsidiaries and exploring new business opportunities, Otedola urged Cardoso to stay the course on bold reforms, affirming strong private-sector support as Nigeria turns an economic corner.
“As someone who has spent over three decades investing, building businesses, and navigating Nigeria’s economic cycles, I rarely comment publicly on policy. But there are moments when leadership must be acknowledged.
“President Bola Ahmed Tinubu has shown remarkable courage and clarity in steering our country through difficult but necessary reforms. His bold sense of direction, guided by a deep understanding of our economy, has created the foundation for policies that are now being recognised across the world. I have seen many administrations, but his conviction at this critical time deserves commendation,” Otedola said.
He added, “In that same spirit of boldness, the Central Bank Governor, Mr. Yemi Cardoso, has been nothing short of exceptional. The slowdown in the rate of inflation is proof of his disciplined return to orthodox monetary policy. This is not theory; these are real results, visible in the gradual easing of pressure on households and businesses. I appreciate this because I know, from experience, how damaging policy inconsistency can be.”
“His reforms in the foreign exchange market have restored confidence that had long been missing. For the first time in years, the naira is strengthening on the back of market forces not artificial fixes. To me, this is the most powerful signal that we are finally doing things the right way. The fact that our external reserves have climbed to a seven-year high above $46 billion is further evidence of his steady hand.
“I am also impressed by the bold decision to recapitalize the banking sector. Some people criticised it early on, unnecessarily in my view, but today it is clear it was the right move. Following the massive profits banks recorded in 2024, 2025 has rightly become a year of prudence and consolidation. This is the only way banks can support real sector lending and drive genuine economic growth next year.
Analysts consider Otedola’s statement as one underscoring growing momentum behind deeper financial sector strengthening amid ongoing consolidation. The statement underscores growing momentum behind deeper financial sector strengthening amid ongoing consolidation.
In March 2024, CBN announced an increase in the capital requirements for banks operating in Nigeria across the different licence categories. Deposit money banks with international authorisation had their minimum capital set at N500 billion, while N200 billion was prescribed for banks with national authorization and N50 billion for regional authorisation.
Merchant banks with national authorization had a minimum authorized capital of N50 billion, while N20 billion and N10 billion was set for non-interest banks with national and regional authoristions respectively.
An integral part of the announcement was the definition of qualifying capital which is specified as paid-up share capital and share premium only, there by excluding the industry’s significant retained earnings reserves and other forms of capital. Banks are also required to comply with the Capital Adequacy Ratio (CAR) relevant to their licence category while trying to meet the new capital.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
