FBN Holdings Plc (First HoldCo) has successfully executed the second tranche of its capital restoration programme, raising ₦29.6 billion through a private placement offered at ₦44 per share.
The transaction price reflects a strategic discount compared to the stock’s recent closing market price of ₦61 per share on the Nigerian Exchange (NGX).
The financial group will inject the newly raised capital directly into its commercial banking arm, First Bank of Nigeria Limited. This move is part of a broader balance sheet strengthening strategy aimed at scaling the group’s total paid-up capital to a target of ₦1 trillion, following shareholder approval at its annual general meeting.
Meeting the CBN Recapitalization Deadline
This latest capital injection follows an earlier internal transfer of approximately ₦270 billion from the holding company into FirstBank.
These combined funds enabled the commercial bank to comfortably surpass the Central Bank of Nigeria’s (CBN) ₦500 billion minimum capital benchmark for banks with international authorizations ahead of the March 31, 2026 regulatory deadline.
With the second tranche of the ₦350 billion private placement program wrapped up, First HoldCo is now shifting its focus to securing the remaining ₦221 billion of the approved capital pool.
Otedola Consolidates Ownership Blueprint
The group’s capital restructuring coincides with a steady consolidation of ownership by its Board Chairman, Mr. Femi Otedola. Since emerging as the top shareholder in 2021, Otedola has consistently increased his equity stake through significant open-market and regulatory acquisitions:
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May 2026: Acquired 549.5 million shares at ₦79 per unit via Calvados Global Services Limited, a transaction valued at ₦43.4 billion.
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December 2025: Purchased 370 million shares at ₦40.1 per unit, totaling ₦14.8 billion.
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September 2025: Secured 64.9 million shares valued at ₦2 billion through a mix of personal holdings and his special purpose acquisition vehicle.
This aggressive equity accumulation followed a major shift in First HoldCo’s top ownership structure in July 2025, when former major shareholders Oba Otudeko (Barbican Capital) and Oye Hassan-Odukale (Leadway Assurance) exited their positions. The off-market exit involved a massive single-day block trade of 10.4 billion shares, representing nearly 25% of the banking group’s total ordinary shares.
Strategic Reinvestment and Liquidity Plays
Otedola, who assumed the role of Board Chairman in January 2024, has been reshaping his broader corporate portfolio to free up liquidity for big-ticket energy and financial assets.
After previously divesting from African Petroleum (which became Forte Oil and later Ardova Plc), he finalized a $750 million divestment from Lagos-listed Geregu Power in December 2025.
Beyond banking, his current investment roadmap includes a planned $100 million private placement injection into the Dangote Petroleum Refinery, signaling a synchronized play across Nigeria’s financial services and heavy energy infrastructure sectors.
Market Implications
The aggressive recapitalization of First HoldCo highlights a broader trend among tier-1 Nigerian banks racing to buffer their balance sheets against inflation and currency adjustments.
By utilizing private placements rather than relying solely on public rights issues, the group has secured large-scale, stable funding quickly. This capital strategy protects FirstBank’s international lending capacity, lowers its risk profile, and ensures it remains well-positioned to fund large corporate projects and drive economic expansion across West Africa.
