The parent company of First Bank of Nigeria has officially announced that it has entered into an agreement to transfer ownership of the bank to new investors, marking one of the most significant transitions in Nigeria’s financial landscape in recent years.
The development comes as the Central Bank of Nigeria intensifies its banking recapitalisation policy aimed at strengthening financial institutions and ensuring their resilience in the face of global and domestic economic pressures.
According to information released within the last 24 hours, the board of FBN Holdings Plc confirmed the sale after months of internal restructuring, negotiations with potential buyers, and rigorous regulatory engagement.
The transaction, which is pending final regulatory approval, is expected to reshape the future of First Bank, one of Nigeria’s oldest and most influential financial institutions.
Background: The Recapitalisation Mandate
Earlier in the year, the Central Bank of Nigeria introduced a new recapitalisation framework requiring banks to significantly increase their capital base.
This directive was issued in response to economic pressures including inflation, exchange rate instability, and global financial volatility.
The CBN stated that the goal was to ensure that Nigerian banks remain strong enough to support large scale investments, withstand shocks, and sustain long-term growth.
Many analysts warned that several banks might struggle to meet the new thresholds, particularly institutions with legacy challenges or limited access to fresh investment capital.
First Bank, although one of the country’s biggest lenders, has faced years of internal battles ranging from boardroom disputes to regulatory sanctions leaving investors and industry watchers anticipating strategic changes.
The Sale: What We Know So Far
FBN Holdings has now confirmed that it reached a deal with a consortium of investors whose identities are expected to be publicly disclosed in the coming days.
The new ownership structure reportedly aligns with the bank’s recapitalisation target and will inject substantial liquidity into the organisation.
Sources close to the negotiation say that the acquiring investors have committed to not only meeting the recapitalisation benchmark but exceeding it, in order to solidify First Bank’s leadership position.
Although the financial value of the transaction has not yet been made public, insiders describe it as one of the largest private investment deals in Nigeria’s banking sector in more than a decade.
Transition and Customer Assurance
In an official statement, the board of FBN Holdings assured customers that the change in ownership will not disrupt banking operations.
All services, including digital channels, lending operations, branch services, and customer support, will continue seamlessly.
The statement further emphasised that deposits remain secure, and that the bank will operate normally under the supervision of the Central Bank of Nigeria.
It added that the new investors are committed to supporting First Bank’s transformation into a stronger, more competitive institution equipped for the modern financial ecosystem.
Customers were also advised that there will be no interruption to daily services, and that all existing agreements, loan terms, and account structures remain valid.
Why the Sale Was Necessary
Industry experts argue that the sale was unavoidable for several reasons:
1. Recapitalisation Pressure: Meeting the CBN’s new capital threshold required massive fresh funding, which may have been difficult for the existing shareholders to provide within the short timeline.
2. Legacy Challenges: First Bank has experienced prolonged governance issues and regulatory interventions, making new investment crucial for stabilisation.
3. Competition: Nigerian banking is increasingly dominated by well-capitalised institutions such as Zenith Bank, Access Bank, and UBA. First Bank needed a significant capital injection to keep pace.
4. Digital Transformation: The bank is currently investing heavily in fintech infrastructure. New capital will accelerate innovation and technological upgrades.
Reaction from the Financial Sector
The announcement has triggered mixed reactions across the financial sector.
Some analysts have welcomed the sale, arguing that it marks a fresh start for the iconic institution.
Others expressed concern about potential shifts in corporate culture, management structure, and long term strategy once new owners assume control.
A Lagos-based financial consultant noted: “First Bank is too big to fail, so it is better for the bank to secure new investors than risk regulatory takeover.
If this transition is managed properly, it may become one of the best strategic decisions
