FirstHoldCo Plc has assured of its commitment to comply with the Central Bank of Nigeria’s (CBN) prudential regulations, including resolving breaches of the Single Obligor Limit (SOL) and exiting forbearance on credit facilities.
The bank also assured shareholders of its intention to continue with dividend payments in 2025 and beyond.
In a statement issued on Thursday, June 19, 2025, the bank explained that the Single Obligor Limit (SOL) breach by its banking subsidiary, FirstBank, relates to two foreign currency loan exposures that were impacted by the over 200% Naira devaluation between 2023 and 2024.
The bank further revealed it is undertaking a capital raise expected to be completed in the second half of 2025. This move, along with other corrective measures, is expected to help the bank restore compliance with prudential limits.
Regarding the forbearance of credit facilities, FirstHoldCo noted that the affected loans are part of syndicated industry exposures. The consortium of lenders involved is currently working to restructure and re-tenor the facilities in line with improved asset performance and cash flow.
“All the assets are back to active production and generating appreciable revenue,” the statement said, adding that some of the underlying projects also have outstanding receivables awaiting payment from relevant government agencies.
FirstHoldCo emphasized that the syndicate is expected to conclude the restructuring process within the current financial year.
If any loan is not fully re-tenored, FirstHoldco assured that full provisioning will be made to enable a clean exit from forbearance.
What it means for investors
FirstHoldCo’s response provides clarity and confidence, as it moves to resolve regulatory exposures, strengthen capital, and protect shareholder value.
With a capital raise scheduled for the second half of 2025 and the lending consortium actively restructuring and re-tenoring the affected facilities, the bank appears well-positioned to navigate regulatory tightening.
Importantly, FirstHoldCo has also assured shareholders of its intention to continue dividend payments in 2025 and beyond, signaling strong confidence in its financial position and long-term value creation.
Background
As previously reported by Nairametrics, the CBN recently directed banks under regulatory forbearance to suspend dividend payments, defer executive bonuses, and halt foreign investments.
- The temporary suspension is part of CBN’s broader strategy to strengthen capital buffers, enhance balance sheet resilience, and encourage prudent capital retention.
- The directive specifically targets banks with unresolved forbearance and SOL breaches—conditions typically indicating financial strain.
