FirstHoldCo to inject new capital into overseas expansion, new business lines

Wale Oyedeji, group managing director and chief executive officer of First HoldCo Plc, has said the holding company will deploy fresh capital into overseas expansion and acquisitions of new business verticals as the financial services group enters the final phase of its recapitalisation programme.

This was disclosed during the company’s half-year 2026 earnings call on Monday; the additional capital the group plans to raise in the second half of the year will not merely satisfy regulatory capital requirements but will also finance expansion into new markets and businesses capable of delivering long-term shareholder value.

“There will be an injection of capital to acquire new business verticals. We will also be injecting additional capital into the bank to enable the bank to pursue expansion initiatives,” Oyedeji said.

Oyedeji said identified foreign markets are already being evaluated, with part of the incoming capital earmarked specifically for expansion outside Nigeria.

“You will realise that for some time now, we have put the brake on international expansion. There are identified markets that we will be exploring. Some capital will be going to explore some of that,” he said.

The disclosure offers investors the clearest indication yet of how Nigeria’s oldest banking franchise intends to deploy billions of naira expected from its next capital raise, shifting the conversation from regulatory compliance to earnings expansion.

The strategy comes after the group successfully completed two major capital raising exercises over the past year as part of efforts to meet the Central Bank of Nigeria’s new minimum capital requirements.

First HoldCo is moving to deepen its capital buffers shortly after FirstBank of Nigeria, its banking subsidiary, met the CBN’s N500 billion minimum capital requirement for international banking authorization.

Shareholders of First HoldCo Plc have approved a capital raise of up to N253.099 billion as the group moves to achieve N1 trillion in paid-up capital; this was disclosed at the company’s 14th Annual General Meeting held virtually on Friday, May 29, 2026.

FirstHoldCo has already adopted a multi-pronged capital strategy, including rights issues, private placements, and asset divestments. The group recently completed a N45 billion private placement in March 2026 as part of efforts to strengthen its equity base.

“We have informed the market that we are on the journey. In Q3, we will have some capital-raising initiatives and will also be going into Q4. We will deliver on our commitments regarding additional capital,” Oyedeji disclosed during the half-year earnings call.

Shareholder returns remain central

Despite plans for another capital raise, management insisted the expansion strategy would not come at the expense of shareholder returns.

Oyedeji said the group remains committed to sustaining returns on equity above 30 percent, arguing that new capital would only be deployed into businesses capable of generating attractive long-term returns.

“We are not interested in having excess capital for the sake of capital because we need to deploy whatever capital our shareholders put in and give them an appropriate return,” he said.

“Our commitment to the market is that we will continue to provide over 30 percent return on equity. That is where we will not negotiate.”

The commitment is significant given investor concerns that industry-wide recapitalisation could dilute profitability as banks struggle to deploy larger equity bases efficiently.

FirstHoldco’s outlook beyond banking
Unlike previous recapitalisation cycles that were largely designed to strengthen bank balance sheets, FirstHoldCo’s latest capital deployment strategy reflects an ambition to become a broader financial services and technology group.

Management said proceeds will fund investments in higher-growth businesses while strengthening the group’s digital infrastructure, payments ecosystem, and cross-border capabilities.

During the earnings presentation, Oyedeji outlined a strategic roadmap stretching to 2029, built around unlocking new growth engines, accelerating diversification, and expanding non-banking operations across Africa.

The strategy includes expansion into higher-return business opportunities, strengthening digital assets, broadening financial inclusion, scaling cross-border payment capabilities, and deepening customer relationships across multiple platforms.

“We are expanding cross-border payments and building financial services seamlessly across platforms. This ecosystem expansion is central to deepening customer engagement, broadening revenue opportunities and reinforcing the long-term competitiveness of the group,” Oyedeji said.

He added that the group sees “a compelling runway” for expanding high-return non-banking businesses across the continent through both organic growth and targeted acquisitions.