First HoldCo Vows to Maintain Dividends Despite CBN Forbearance Clampdown

First HoldCo has pledged to continue paying dividends in 2025 and beyond, despite challenges linked to the Central Bank of Nigeria’s (CBN) forbearance directives. The assurance was made via a disclosure to the Nigerian Exchange on Thursday, reaffirming the institution’s commitment to shareholders.

“As Nigeria’s oldest bank and a diversified financial holding company, First HoldCo remains dedicated to its stakeholders and will sustain dividend disbursements,” the company stated.

This declaration comes amid CBN-imposed restrictions affecting several Nigerian banks. These include suspended dividend payments, a freeze on executive bonuses, and a halt on foreign expansion until banks address breaches of single obligor limits (SOL) and adequately provision for forbearance loans.

First HoldCo explained that its SOL violation originated from two foreign currency loan clients impacted by the steep naira devaluation—over 200%—that occurred between 2023 and 2024.

The bank noted that the breach, linked to its flagship subsidiary FirstBank, would be addressed once its capital raise, scheduled for the second half of 2025, is completed. It also clarified that the affected loans stem from syndicated facilities that serve broader industry needs.

“Assets backing the loans have resumed operations and are generating significant income,” the company said. “Receivables from relevant government agencies are also expected. The lending consortium is working on restructuring loan tenures to match projected cash flows.”

According to the statement, any loan not successfully restructured by year-end will be fully provisioned, allowing First HoldCo to exit the forbearance regime.

The CBN has since reaffirmed the overall resilience and soundness of Nigeria’s banking sector, emphasizing that these directives are part of broader reforms to enhance capital adequacy across the financial system.