Nigerian billionaire and Chairman of First HoldCo, Femi Otedola, has explained the sharp 92 percent decline in the company’s profit for the 2025 financial year, attributing it to a deliberate cleanup of legacy bad loans ahead of the Central Bank of Nigeria’s (CBN) recapitalization deadline in 2026.
In a statement posted on his X (formerly Twitter) account on Saturday, Otedola said First HoldCo took a one-off hit of N748 billion to recognize old non-performing loans rather than continue to carry them on its books.
According to him, the decision was taken in line with the CBN’s renewed push for banks to confront longstanding issues instead of deferring them indefinitely. He noted that the apex bank, under the leadership of Governor Olayemi Cardoso, is insisting that financial institutions stop “kicking problems down the road.”
Otedola, who recently increased his stake in First HoldCo to 18.12 percent, stressed that the group remains fundamentally strong despite the profit slump. He revealed that the company generated N2.96 trillion in interest income and N1.91 trillion in net interest income, which provided the capacity to absorb the heavy provisioning and still remain stable.
He added that the significant profit decline was the direct result of the one-time cleanup exercise, describing it as a painful but necessary step for long-term sustainability.
Otedola expressed confidence that First HoldCo would enter 2026 in a stronger position, well ahead of the March 31 recapitalization deadline set by the CBN. He said the bank is now “lighter, cleaner, and better prepared” for the recapitalization era and future growth.
According to him, clearing bad loans, maintaining a strong income base, and adopting a long-term strategy will ultimately drive real value creation for the group.
