First HoldCo Plc has issued a formal statement clarifying its position on the Central Bank of Nigeria’s (CBN) circular regarding regulatory forbearance issued on June 13, 2025.
The circular, referenced BSD/DIR/CON/LAB/018/008, focuses on breaches of the Single Obligor Limit (SOL) and related credit exposures across the banking sector.
In its statement signed by Company Secretary Adewale L.O. Arogundade, the Board of First HoldCo, chaired by Mr. Olufemi Otedola, CON, with Group Managing Director Mr. Adebowale Oyedeji, acknowledged that its primary banking subsidiary, First Bank of Nigeria Ltd (FirstBank), had incurred an SOL breach.
The breach pertains to two customers with outstanding foreign currency loans that were significantly impacted by the over 200% naira devaluation that occurred between 2023 and 2024.
To address the breach, FirstBank disclosed that it is in the final stages of completing a capital raise, scheduled for completion in the second half of 2025. This initiative, combined with other corrective measures, is expected to restore full compliance with regulatory SOL limits.
Regarding the CBN’s broader forbearance framework, the Company explained that the affected credit facilities fall under syndicated loans granted to customers in high-exposure sectors. These loans, the statement noted, are industry-specific and are currently being restructured by a consortium of lenders to better match the borrowers’ cash flows.
“All the assets tied to these facilities are back in active production and generating appreciable revenue,” the Company noted. “Some borrowers also have receivables pending from relevant government agencies.”
First HoldCo affirmed that the syndicate of lenders is on track to complete the re-tenoring process within the current financial year. In cases where full re-tenoring is not achieved, the loans will be fully provisioned in line with prudential guidelines and will exit the CBN’s forbearance window.
Despite the temporary credit irregularities, First HoldCo reaffirmed its financial stability and commitment to value creation, assuring stakeholders of continued dividend payments in 2025 and beyond.
“As a well-diversified financial holding company, FirstHoldCo will sustain its dividend payments in 2025 and beyond as we remain committed to our esteemed stakeholders,” the statement concluded.
The clarification follows increasing regulatory scrutiny in Nigeria’s banking sector, especially following currency volatility and rising non-performing loan ratios. With First HoldCo’s assurance, investors are expected to closely watch its capital raise efforts and the resolution of syndicated exposures across its loan book.
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