Otedola Explains 92% Profit Crash at First HoldCo, Cites ₦748bn Bad Loan Cleanup Ahead of CBN Recapitalisation

|By Babatunji Wusu

Nigerian billionaire and Chairman of First HoldCo, Femi Otedola, has broken his silence on the company’s 92 per cent profit decline in its 2025 financial year, attributing the sharp drop to a deliberate cleanup of legacy bad loans ahead of the Central Bank of Nigeria’s (CBN) 2026 recapitalisation deadline.

Otedola disclosed in a statement posted on his X account on Saturday that First HoldCo absorbed ₦748 billion in old non-performing loans, choosing to recognise the losses rather than defer them.

He said the move aligned with the reform drive of the CBN under Governor Olayemi Cardoso, which is pressuring banks to stop postponing structural problems and confront them directly.

According to Otedola, the one-off loss distorted the company’s profit figures but strengthened its long-term fundamentals. He stressed that the decline reflected accounting honesty, not operational weakness.

Despite the profit slump, Otedola said First HoldCo’s core business remained resilient, posting ₦2.96 trillion in interest income and ₦1.91 trillion in net interest income, figures he described as strong enough to support the cleanup exercise.

The billionaire investor, who recently raised his stake in the company to 18.12 per cent, said the group is financially stable and strategically positioned for growth as the recapitalisation era approaches.

He noted that by writing off legacy loans now, First HoldCo has closed a difficult chapter, reinforced credit discipline, and rebuilt investor and public confidence.

Otedola added that the bank would enter 2026 “lighter, cleaner, and better prepared” for the March 31 recapitalisation deadline, insisting that the painful profit headline masks a decisive long-term value strategy.