FirstHoldCo to meet CBN rules, assures dividend payout in 2025
BY TEMITOPE ADEBAYO
FirstHoldCo Plc has reaffirmed its commitment to comply with the Central Bank of Nigeria’s (CBN) regulatory requirements, including resolving breaches of the Single Obligor Limit (SOL) and exiting credit facility forbearance, while assuring shareholders of continued dividend payments in 2025 and beyond.
In a statement issued on Thursday, June 19, 2025, the financial holding company clarified that the SOL breach by its banking subsidiary, FirstBank, stemmed from two foreign currency loan exposures impacted by the sharp devaluation of the Naira by over 200 per cent between 2023 and 2024.
To address the issue and strengthen its capital position, the group said it is conducting a capital raise expected to be finalised in the second half of 2025. This, alongside other corrective actions, will support compliance with prudential limits and bolster the group’s financial resilience.
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On the forbearance granted on certain credit facilities, FirstHoldCo explained that the affected loans are part of syndicated exposures currently undergoing restructuring. The consortium of lenders is working to re-tenor the loans based on the improved performance and cash flow of the underlying assets, which have resumed full production and are now generating revenue. The company added that some of these projects have outstanding receivables due from government agencies.
FirstHoldCo assured that the restructuring is expected to be completed before year-end. In the event any facility is not fully re-tenored, the group pledged to make full provisioning to allow a clean exit from forbearance.
The move signals the company’s effort to restore regulatory compliance, preserve shareholder value, and maintain investor confidence amid regulatory tightening. This comes after the CBN directed banks under regulatory forbearance to suspend dividend payments, defer executive bonuses, and halt foreign investments.
Despite the CBN’s stance, FirstHoldCo has expressed optimism about its financial health and confirmed its intention to continue dividend payouts, reinforcing confidence in its long-term growth strategy.
