Femi Otedola, Chairman of First HoldCo Plc, has urged the Central Bank of Nigeria (CBN) to further strengthen the financial sector by increasing banks’ minimum capital base to ₦1 trillion for institutions with international licences.
Eko Hot News reports that Otedola made the call while reacting to the ongoing banking sector recapitalisation exercise introduced by the CBN to enhance financial stability and support Nigeria’s long-term economic growth agenda.
According to the billionaire investor, Nigeria’s aspiration to build a $1 trillion economy requires well-capitalised banks capable of financing large-scale projects across critical sectors of the economy. He stressed that stronger capital buffers would improve corporate governance and reduce the tendency of banks being controlled by a few dominant interests.
Otedola commended President Bola Ahmed Tinubu and CBN Governor Yemi Cardoso for initiating bold reforms in the financial system, noting that the recapitalisation policy is timely and necessary given prevailing macroeconomic pressures.
He disclosed that FirstBank of Nigeria Limited has successfully met the ₦500 billion minimum capital requirement set by the apex bank, positioning the institution for sustained growth and expanded operations.
The CBN had earlier announced new capital thresholds, directing international banks to raise their minimum capital to ₦500 billion, national banks to ₦200 billion, and regional banks to ₦50 billion within a defined transition period.
Otedola noted that many Nigerian banks recorded strong earnings in recent years and should leverage those gains to consolidate their balance sheets and support economic development.
He added that FirstBank’s shareholders remain committed to injecting additional funds to strengthen its subsidiaries and expand strategic investments locally and internationally.
The recapitalisation exercise is expected to reshape Nigeria’s banking landscape by promoting resilience, improving confidence, and enhancing the sector’s capacity to fund transformative projects nationwide.
