Major shareholder Femi Otedola has said FirstBank has already met the ₦500 billion minimum capital requirement set by the Central Bank of Nigeria (CBN) for an international banking licence.
Otedola said shareholders of First HoldCo Plc are prepared to inject additional capital into the group’s banking and non-banking subsidiaries, as well as new business adjacencies, underscoring confidence in the CBN’s recapitalisation drive.
He also offered unusually strong praise for the CBN Governor, Yemi Cardoso, describing him as the best Nigeria has produced.
“I say this without hesitation: Yemi Cardoso is the best Central Bank Governor Nigeria has ever produced. His calmness, discipline, and unwavering focus on doing what is right, not what is easy, is exactly the leadership a serious economy needs,” Otedola said.
According to him, Nigeria’s current monetary reforms deserve sustained backing from long-term investors. “Nigeria is turning a corner, and those of us who believe in this country will continue to support the bold monetary reforms. These reforms are laying a stronger foundation for our future.”
Call to Raise Minimum Capital to ₦1 Trillion
Looking ahead, Otedola argued that the CBN should go further by increasing the minimum capital requirement for international banking licences from ₦500 billion to at least ₦1 trillion.
“A modern economy aiming for the $1 trillion mark cannot rely on weakly capitalised banks. Stronger banks mean better governance, broader ownership, and institutions that are not run like personal estates,” he said.
Analysis: The Case For — and Against — a ₦1 Trillion Capital Threshold
From a policy perspective, higher minimum capital requirements can significantly strengthen financial stability.
The International Monetary Fund (IMF) has consistently found that well-capitalised banks are better able to absorb shocks, maintain confidence during periods of stress, and reduce the fiscal cost of banking crises. In emerging markets facing FX volatility and inflationary pressures, stronger capital buffers are often associated with greater systemic resilience.
However, the IMF and academic literature also caution against abrupt or poorly sequenced increases. Empirical studies show that sharp hikes in capital requirements can temporarily constrain credit growth, particularly to SMEs, as banks deleverage or reprice risk to meet new thresholds. Higher minimums may also accelerate consolidation, reducing competition if smaller but well-run banks are forced out.
The balance, therefore, lies in implementation. A phased transition, credible timelines, and regulatory safeguards for credit to the real economy are critical. If executed carefully, a ₦1 trillion threshold could improve governance, align Nigerian banks with global peers, and support long-term growth. If rushed, it risks tightening financial conditions at a delicate point in Nigeria’s recovery.
