Billionaire investor and Chairman of First HoldCo, Femi Otedola, has explained the sharp 92 per cent drop in the company’s profit for the 2025 financial year, linking it to deliberate clean-up actions ahead of the Central Bank of Nigeria’s 2026 recapitalisation deadline. According to Otedola, the decline was not due to weak business performance but the decision to recognise long-standing bad loans running into hundreds of billions of naira.

In a statement shared on his X account, Otedola revealed that First HoldCo absorbed about ₦748 billion in old non-performing loans. He explained that the company chose to confront these losses head-on rather than continue ignoring them. He noted that the current CBN leadership, under Governor Olayemi Cardoso, is insisting that banks stop postponing financial problems and instead address them transparently.

Despite the profit crash, Otedola stressed that First HoldCo remains financially strong. He disclosed that the group generated ₦2.96 trillion in interest income and ₦1.91 trillion in net interest income, providing enough strength to absorb the one-time loss. He added that this solid income base shows the bank’s core business is healthy and resilient.

Looking ahead, Otedola said the clean-up positions First HoldCo for stronger growth in 2026 and beyond. He explained that by clearing bad loans now, the company is entering the recapitalisation era “lighter, cleaner, and better prepared,” with improved credibility and long-term value for shareholders. According to him, tough decisions today are necessary to secure sustainable growth tomorrow.