Nigerian billionaire and Chairman of First HoldCo, Femi Otedola, has explained why the firm’s profit crashed by 92 per cent in its 2025 financial year performance ahead of the 2026 Central Bank of Nigeria (CBN) recapitalisation deadline.
In a statement on his X account on Saturday, Otedola said the company was affected by ₦748 billion in old bad loans.
According to him, the firm took the decision to recognise the losses rather than pretend “they do not exist.”
He further explained that the Central Bank of Nigeria, under Olayemi Cardoso, is “pushing banks to stop kicking problems down the road.”
Otedola, who recently increased his stake in the firm to 18.12 per cent, said the company is “still strong.”
He noted that First HoldCo recorded ₦2.96 trillion in interest income and ₦1.91 trillion in net interest income, which gave it the strength to undertake the clean-up and remain standing.
He added that the firm would enter 2026 better and stronger ahead of the March 31 recapitalisation deadline.
“Beyond this, we go into 2026 lighter, cleaner, and better prepared for the recapitalisation era and serious growth.
“At First HoldCo, we decided to clean house properly. We took a huge one-time hit of ₦748 billion to admit old bad loans instead of pretending they do not exist. That is why profit appears to have crashed by 92 per cent. It is a painful headline, but it is a serious long-term move.
“Why do this now? Because the CBN is pushing banks to stop kicking problems down the road. First HoldCo has effectively closed the chapter on messy loans from past years, which sends a clear message that borrowing has consequences and helps rebuild trust.
“The key point is this: our business itself is still strong. It made ₦2.96 trillion in interest income and ₦1.91 trillion in net interest income, which gave it the strength to undertake the clean-up and remain standing.
“Now at First HoldCo and beyond, we go into 2026 lighter, cleaner, and better prepared for the recapitalisation era and serious growth.
“Bad loans cleared, strong income engine, and long-term thinking equal real value creation,” he wrote on X.