This reassurance was contained in a statement filed with the Nigerian Exchange Limited on Thursday, following recent concerns about the lender’s exposure to regulatory forbearance and the Central Bank of Nigeria’s (CBN) temporary restrictions on dividend payouts.
First HoldCo, the parent company of First Bank of Nigeria Ltd, is among several banks affected by a CBN directive that prohibits dividend distributions, bonuses, and foreign investments by lenders under regulatory forbearance — a temporary relief framework that allows banks to restructure or suspend classification of certain stressed assets without triggering default or capital adequacy breaches.
According to the statement, the breach of the Single Obligor Limit (SOL) by First Bank was linked to two foreign currency loans issued to clients before the naira's sharp depreciation. The devaluation — estimated at over 200 percent between 2023 and 2024 — significantly increased the naira value of the affected exposures.
However, the bank noted that corrective steps are underway. “With the planned completion of the capital raise in the second half of 2025, among other measures, the bank will cure the breach in this regard,” the company said.
In addition, FirstBank’s forbearance exposures were clarified to involve syndicated loans extended across the banking sector. These loans, according to the lender, are already performing assets as the underlying projects have resumed operations and are generating substantial revenues. Some of the facilities also have pending receivables from government agencies.
The lender explained that consortium members are currently working to re-tenor the affected facilities to match revised cash flow profiles, with expectations that the restructuring process will be completed before the end of the financial year.
“Any loan not fully re-tenored will be fully provisioned and exit forbearance,” the statement added, signaling a commitment to prudent risk management and regulatory compliance.
Reaffirming its financial resilience, the Group emphasized its structure as a diversified financial holding company, expressing confidence in its ability to deliver returns to shareholders.
“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 lender stated.
The announcement is likely to offer reassurance to investors and market analysts amid a broader environment of financial sector recalibration, as Nigerian banks work to meet new capital adequacy thresholds and adapt to a liberalized foreign exchange regime.