Billionaire investor and Chairman of First HoldCo Plc, Femi Otedola, has called on the Central Bank of Nigeria (CBN) to strengthen the nation’s banking system by raising the minimum capital requirement for international banks to at least ₦1 trillion.
In a statement released on Friday, Mr. Otedola commended President Bola Tinubu and CBN Governor Yemi Cardoso for implementing bold economic reforms that are delivering tangible results across Nigeria’s financial sector.
The call comes as FirstBank of Nigeria Limited, the commercial banking subsidiary of First HoldCo Plc, confirmed it has met the ₦500 billion minimum capital threshold for banks holding international licenses under the ongoing CBN banking sector recapitalisation programme.
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Mr. Otedola emphasized that Nigeria’s ambition to build a $1 trillion economy requires well-capitalized banks.
“From where I stand, and with the benefit of many years in Nigeria’s business landscape, I believe it is time to raise 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,” he said.
He added that stronger capital buffers would enhance governance, broaden ownership structures, and prevent banks from being run as “personal estates.”
The CBN recapitalisation, announced in 2024, is the first major exercise in nearly two decades and aims to stabilize the sector amid inflationary pressures, currency volatility, and the need to finance larger real economy transactions. International banks were required to raise capital to ₦500 billion, while national and regional banks face lower thresholds.
Mr. Otedola described the recapitalisation policy as timely and necessary, noting that banks recorded strong profits in 2024 and are expected to focus on prudence and consolidation in 2025.
“2025 has rightly become a year of prudence and consolidation. Only well-capitalised banks will be able to support long-term lending to critical sectors of the economy,” he said.
On FirstBank’s compliance, Mr. Otedola stated that shareholders are committed to injecting additional capital into subsidiaries and exploring new business adjacencies. As Nigeria’s oldest financial institution, FirstBank operates across Africa and international markets.
Beyond banking reforms, Mr. Otedola praised President Tinubu’s leadership, noting that the administration’s tough reforms are laying a foundation for sustainable growth. He also lauded CBN Governor Yemi Cardoso for restoring confidence in the foreign exchange market and moderating inflation through disciplined monetary policy.
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“The strengthening of the naira on market fundamentals and the rise in Nigeria’s external reserves to over $46 billion, a seven-year high, demonstrate improved policy credibility. I say this without hesitation: Yemi Cardoso is the best Central Bank Governor Nigeria has ever produced,” he said.
He urged the CBN governor to continue his reforms, emphasizing that Nigeria is “turning a corner” and investors committed to the country will continue supporting initiatives that build a stronger, more resilient economy.
