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Otedola Calls for ₦1 Trillion Capital Base for Banks as FirstBank Clears ₦500bn Mark

Published by admin on January 3rd, 2026.

Otedola Calls for ₦1 Trillion Capital Base for Banks as FirstBank Clears ₦500bn Mark

Billionaire investor and Chairman of First HoldCo Plc, Femi Otedola, has urged the Central Bank of Nigeria (CBN) to further strengthen the country’s banking sector by increasing the minimum capital requirement for international banks to at least ₦1 trillion.

Otedola made the call on Friday, praising President Bola Ahmed Tinubu and the CBN Governor, Yemi Cardoso, for what he described as firm and well-coordinated economic reforms that are beginning to restore confidence in the financial system.

His remarks followed the confirmation that FirstBank of Nigeria Limited, the flagship subsidiary of First HoldCo Plc, has successfully met the ₦500 billion minimum capital threshold set by the CBN for banks operating with international licences under the ongoing recapitalisation exercise.

According to Otedola, Nigeria’s long-term goal of building a $1 trillion economy would be difficult to achieve without stronger and better-capitalised financial institutions. He argued that raising capital requirements would deepen corporate governance, broaden ownership structures, and end the era of banks being controlled like personal businesses.

“With decades of experience in Nigeria’s business environment, I believe the time has come to raise the minimum capital base for international banks from ₦500 billion to at least ₦1 trillion,” Otedola said. “An economy with global ambitions cannot be supported by weakly capitalised banks.”

The CBN launched the recapitalisation programme in 2024—the first major overhaul of bank capital requirements in nearly 20 years—citing inflationary pressures, exchange rate instability, and the need to enable banks to finance large-scale economic activities. While international banks were given a ₦500 billion benchmark, national and regional banks were assigned lower capital thresholds.

Otedola described the policy as both timely and necessary, noting that many banks posted strong profits in 2024 and must now shift their focus toward consolidation and risk discipline. He added that only well-capitalised institutions would be capable of providing long-term financing to key sectors of the economy.

On FirstBank’s position, he said shareholders remain committed to strengthening the bank’s balance sheet, supporting its subsidiaries, and expanding into new business areas. FirstBank, Nigeria’s oldest financial institution, maintains operations across Africa and in other global markets.

Beyond banking reforms, Otedola commended President Tinubu’s leadership, describing the administration’s economic decisions as tough but essential steps toward sustainable growth. He also applauded CBN Governor Yemi Cardoso’s monetary policy direction, crediting him with restoring confidence in the foreign exchange market and helping to stabilise inflation through disciplined policy choices.

He cited the appreciation of the naira based on market fundamentals and Nigeria’s external reserves rising above $46 billion—its highest level in seven years—as signs of renewed policy credibility.

Otedola urged the CBN to maintain its current reform path, expressing optimism that Nigeria is gradually repositioning itself for long-term economic resilience and increased investor confidence.