FirstHoldCo Plc has reaffirmed its commitment to regulatory compliance, pledging to resolve all outstanding issues related to the Central Bank of Nigeria’s (CBN) prudential requirements, including breaches of the Single Obligor Limit (SOL) and forbearance on credit facilities.
The financial holding company also assured shareholders of its intention to sustain dividend payments from 2025 and beyond.
In a corporate disclosure issued on Thursday, June 19, 2025, FirstHoldCo clarified that the SOL breach recorded by its flagship banking subsidiary, FirstBank, stemmed from two foreign currency loan exposures that were significantly impacted by the sharp naira devaluation of over 200 per cent between 2023 and 2024.
To address the issue, the group said it is actively pursuing a capital raise, expected to be completed in the second half of 2025. The capital injection, along with other corrective actions, is expected to bring the bank back into compliance with the CBN’s prudential limits.
Regarding credit facilities currently under regulatory forbearance, FirstHoldCo explained that the affected loans are part of broader syndicated exposures involving multiple industry lenders.
According to the statement, the consortium is already working collaboratively to restructure and re-tenor these facilities based on improved asset performance and strengthened cash flow from the underlying projects.
“All the assets are back to active production and generating appreciable revenue,” the company noted. “Some of the underlying projects also have outstanding receivables awaiting settlement from relevant government agencies.”
The company added that the restructuring exercise is expected to be concluded within the 2025 financial year. Should any loan fail to meet the criteria for restructuring, FirstHoldCo said it will make full provisioning to ensure a clean exit from the CBN’s forbearance regime.