FirstHoldCo Pledges Regulatory Compliance & Dividend in 2025

FirstHoldCo Pledges Regulatory Compliance & Dividend in 2025

In the wake of the Central Bank of Nigeria’s (CBN) prudential directive, FirstHoldCo Plc has assured investors it will comply with regulatory limits and pay dividends in 2025 and beyond a clear vote of confidence from one of Nigeria’s lead holdings.

What’s the Issue: SOL Breach & Forbearance

According to Nairametrics, FirstHoldCo admitted that FirstBank, its primary banking unit, violated the Single Obligor Limit (SOL) due to foreign-currency loans linked to the sharp 200% naira depreciation between 2023 and 2024.

This triggered a CBN requirement: banks under regulatory forbearance including those with SOL breaches must suspend dividends, defer executive bonuses, and halt foreign investments until they exit forbearance safely.

The Plan: Capital Raise & Restructuring

As of June 19, 2025, FirstHoldCo outlined its strategy:

1. Capital Raise:   A mid-2025 fundraising is underway to shore up regulatory compliance.
2. Syndicated Loan Relaunch:   The affected foreign currency loans are being fully restructured for repayment-based cash flow .
3. Active Revenue Recovery:   Underlying projects are producing and generating receivables from government clients.
4. Full Provisioning:   If restructuring isn’t complete this year, they’ll make provisions accordingly to exit the forbearance cleanly

What It Means for Investors

Clarity and confidence are key takeaways:

• FirstHoldCo is taking proactive corrective action, aiming to exit forbearance and restore dividend payments meaning they’re not just reacting, but leading with shareholder interests in mind.
• By resolving SOL issues and raising capital this year, the group positions itself ahead of the 2026 recapitalization deadline.
• Once they fully comply, dividends will resume, signaling renewed value creation.

Sector Context: CBN’s Regulatory Pressure

This isn’t just a FirstHoldCo story it’s a shake‑up in Nigerian banking:

• The CBN’s directive is forcing banks to preserve capital no dividends, no bonuses, no foreign investments until they meet compliance.
• Other banks, have announced similar exits from forbearance and dividend resumption plans by end‑June.

Financial Juggernut Insight: What This Signals

1. Regulatory pressure is effective:   The CBN isn’t sending gentle reminders it’s using enforceable measures to strengthen bank resilience.
2. Capital discipline matters:   Banks exiting SOL breaches now will profile as winners in the next growth cycle.
3. Investor timing is key:   FirstHoldCo’s timeline for refinancing and dividend restoration makes it a strong performer to watch through 2025.
4. Industry-wide reset:   As more banks resolve exposures, expect a wave of dividend resumption and possibly a stock rally.

Final Word

FirstHoldCo’s action plan isn’t just damage control it’s, strategic positioning. By tackling regulatory setbacks and committing to shareholder value, they’re reshaping expectations for Nigerian banks under pressure.

In the Financial Juggernut playbook: do the heavy lifting now, reap the returns later.