First HoldCo takes N748bn hit to wipe bad loans clean, eyes recapitalisation boom

Abdullateef Fowewe

Billionaire businessman, Femi Otedola has revealed that First HoldCo absorbed a massive ₦748 billion one-time charge to decisively address legacy bad loans, resulting in a stark 92% profit drop—but positioning the group for robust future growth amid Central Bank of Nigeria (CBN) reforms.

In an X post, Otedola explained the bold move, “At First HoldCo we decided to clean house properly. We took a huge one time hit of ₦748bn to admit old bad loans instead of pretending they do not exist. That is why profit looks like it crashed by 92%. Painful headline, but it is a serious long-term move.”

The cleanup aligns with CBN’s directive to halt the deferral of loan problems.

“Why do this now? Because the @cenbank is pushing banks to stop kicking problems down the road.

“So First HoldCo basically closed the chapter on messy loans from past years which sends a clear message that borrowing has consequences and it helps rebuild trust,” Otedola had written.

Despite the headline-grabbing loss, Otedola stressed the underlying strength of the business.

The group generated ₦2.96 trillion in interest income and ₦1.91 trillion in net interest income, providing the resilience to weather the hit.

Looking ahead, he declared optimism for 2026, “Now at @FirstBankngr and beyond we go into 2026 lighter, cleaner and better prepared for the recapitalisation era and serious growth.”

Otedola encapsulated the strategy, “Bad loans cleared + strong income engine + long term thinking = real value creation.”

This transparency comes as Nigerian banks gear up for CBN’s recapitalisation drive, aiming to fortify the sector against economic headwinds.