First Bank Holdings to Raise $300 Million Capital Amidst CBN Regulation.

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Nigeria's First Bank Holdings is set to raise an additional ₦300 billion ($231 million) in capital to comply with the Central Bank of Nigeria's (CBN) new minimum capital requirements. This announcement comes ahead of a shareholders meeting scheduled for later this month.

The CBN has directed all banks, including commercial, merchant, and non-interest institutions, to increase their capital base within 24 months. This move aims to strengthen the stability of the Nigerian financial system.

Breakdown of New Requirements:

• Commercial Banks with International Authorization: These banks will need to raise their capital to ₦500 billion.

• National Banks: These banks will need to increase their capital to ₦200 billion.

• Regional Banks: These banks will need to raise their capital to ₦50 billion.

First Bank Not Alone:

First Bank Holdings isn't the only institution taking action. Access Holdings, the parent company of Nigeria's largest bank by assets, previously announced plans to raise ₦365 billion ($257 million) through a share sale to existing investors, likely in response to the CBN's directive.

The Deadline Looms:

With an April 2024 deadline approaching, many Nigerian banks are actively seeking ways to meet the CBN's new capital requirements. This round of capital raising is expected to improve the overall health and stability of the Nigerian banking sector.

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