First HoldCo Plc (formerly FBN Holdings Plc) has reaffirmed its commitment to sustaining dividend payouts in 2025 and beyond, despite concerns over regulatory forbearance issues flagged by the Central Bank of Nigeria (CBN).
In a statement issued to clarify its position on the regulatory breaches related to Single Obligor Limit (SOL) and certain credit exposures, the company explained that the SOL breach by its flagship subsidiary, First Bank of Nigeria Ltd, involved just two clients with foreign currency loans impacted by the over 200% naira devaluation between 2023 and 2024.
The holding company noted that efforts are underway to rectify the breach, including the anticipated completion of a capital raise in the second half of 2025.
"With the planned completion of the capital raise in the second half of 2025, among other measures, the Bank will cure the breach in this regard," the statement read.
On the issue of forbearance relating to restructured loans, First HoldCo clarified that the affected loans are part of syndicated facilities shared across the banking sector. It said the consortium of lenders is already working to re-tenor the loans to align with current cash flows, as most of the underlying assets are now fully operational and generating revenue.
The company added that some of the facilities also have pending receivables expected from relevant government agencies. It assured that all processes related to the re-tenoring would be concluded within the 2025 financial year.
"Any loan not fully re-tenored will be fully provisioned and exit forbearance," the company added.
As a well-diversified financial services group, First HoldCo reiterated its commitment to long-term shareholder value.
“We remain committed to our esteemed stakeholders and will sustain our dividend payments in 2025 and beyond,” the statement concluded.
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