By Ayomide Otitoju
Billionaire businessman and Chairman of First HoldCo Plc, the parent company of First Bank of Nigeria, Femi Otedola, has defended the group’s decision to absorb a one-off loss of ₦748 billion arising from the recognition of legacy non-performing loans, describing the move as a deliberate balance-sheet clean-up rather than a sign of operational weakness.
In a post on his X handle on Saturday, Otedola said the company chose to confront long-standing bad loans head-on instead of deferring their recognition. He explained that the decision accounted for the reported 92 per cent drop in profit, which he described as a “painful headline” but a necessary step for long-term stability.
According to him, the losses were non-recurring and stemmed from the acknowledgment of old non-performing assets accumulated over previous years. He added that the action aligns with directives from the Central Bank of Nigeria (CBN), which has urged banks to strengthen their balance sheets and discontinue the practice of postponing the recognition of impaired assets, particularly ahead of the ongoing bank recapitalisation exercise.
Otedola noted that by closing the chapter on legacy bad loans, First HoldCo is reinforcing accountability in lending and rebuilding confidence among stakeholders.
Despite the write-off, he said the group’s core operations remain resilient, citing ₦2.96 trillion in interest income and ₦1.91 trillion in net interest income, which provide sufficient capacity to absorb the impact of the loss.
The move, he added, is expected to enhance transparency, restore investor confidence and position First HoldCo for sustainable long-term growth.
