FirstHoldCo, Two Others To Exit CBN Forbearance Restrictions In June
FirstHoldCo Plc, Fidelity Bank Plc, and Access Holdings Plc have joined other financial institutions to reassure investors and shareholders following the Central Bank of Nigeria’s (CBN) recent directive restricting dividend payments, bonuses, and new foreign investments by banks with unresolved regulatory forbearance issues.
In separate filings with the Nigerian Exchange Limited (NGX) seen by THE WHISTLER, the three financial institutions confirmed that while they fall within the scope of the new directive, they remain committed to paying dividends for the 2025 financial year and are actively working to resolve outstanding regulatory concerns by the end of June 2025.
The CBN directive, issued earlier this month, affects banks operating under regulatory forbearance—temporary relief measures granted to manage loan exposures, including breaches of the Single Obligor Limit (SOL) and non-performing credits. The regulator had instructed affected institutions to withhold dividend distributions until full compliance is achieved.
FirstHoldCo Plc, in a notice issued on Thursday, disclosed that its banking subsidiary, FirstBank, breached the SOL due to two foreign currency loan exposures significantly impacted by the over 200 per cent naira devaluation between 2023 and 2024.
The company said it is undertaking a capital raise expected to be completed in the second half of 2025, and confirmed it will make full provisioning for any unresolved loans to exit forbearance cleanly.
The company also revealed that the affected credit facilities are part of syndicated loans tied to projects that have resumed production and are generating revenue, with receivables due from government agencies.
FirstHoldCo assured that the syndicate of lenders is on course to complete the loan restructuring process within the current financial year.
Fidelity Bank Plc said it expects to exit all CBN forbearance arrangements—including SOL and credit-related exposures—by June 30, 2025.
The bank attributed its SOL breach to two obligors, while forbearance on other facilities involves four customers. It has already made substantial provisions and undertaken recovery measures to return the loans to performing status.
The bank also noted significant capital-raising efforts, including the successful completion of a N273 billion capital raise through a Public Offer and Rights Issue, which were oversubscribed by 237.92 per cent and 137.73 per cent, respectively.
To meet the CBN’s new N500bn minimum capital requirement for internationally licensed banks, Fidelity Bank plans to raise an additional N200bn through a Private Placement, with regulatory approvals underway.
Access Holdings Plc, also in a notice confirmed that its flagship subsidiary, Access Bank, is already compliant with the SOL requirement and aims to exit all regulatory forbearance on credit facilities by the end of June.
The bank emphasized that it maintains a strong capital position, having been the first to exceed the N500 billion capital threshold set by the CBN as of December 31, 2024.
Despite the regulatory headwinds, the three institutions reiterated their commitment to preserving shareholder value, maintaining capital adequacy, and adhering to prudential guidelines.
Their proactive measures to resolve forbearance issues are intended to position them for continued dividend payouts and regulatory compliance in 2025 and beyond.
FirstHoldCo, Two Others To Exit CBN Forbearance Restrictions In June is first published on The Whistler Newspaper
