The profit of Nigeria’s oldest financial institutions, First Bank of Nigeria Holdings Plc (First HoldCo), has declined by 92 per cent following a one-off provision of ₦748 billion to clean up legacy non-performing loans.
The Group Chairman of First HoldCo, Mr. Femi Otedola, disclosed this in a post on his X (formerly Twitter) handle on Saturday, describing the decision as a strategic move aimed at strengthening the bank’s long-term stability despite its short-term impact on earnings.
According to Otedola, the sharp decline in profit was the direct result of the bank’s decision to take a full one-time charge to address accumulated bad loans, in line with the Central Bank of Nigeria’s (CBN) directive for banks to transparently resolve non-performing assets.
“At First HoldCo, we decided to clean house properly. We took a huge one-time hit of ₦748bn to admit old bad loans instead of pretending they do not exist. That is why profit looks like it crashed by 92 per cent. Painful headline, but it is a serious long-term move,” Otedola wrote.
He explained that the cleanup was necessary to close the chapter on problematic loans from previous years and to rebuild stakeholder confidence in the institution.
“Why do this now? Because the CBN is pushing banks to stop kicking problems down the road. So First HoldCo basically closed the chapter on messy loans from past years, which sends a clear message that borrowing has consequences and helps rebuild trust,” he added.
Despite the significant provisioning, Otedola stressed that the bank’s core business remains strong, citing robust revenue performance as evidence of its underlying financial health.
According to him, First Bank recorded ₦2.96 trillion in interest income and ₦1.91 trillion in net interest income, giving the institution sufficient capacity to absorb the write-off while maintaining operational stability.
“The key point is this: our business itself is still strong. It made ₦2.96tn in interest income and ₦1.91tn in net interest income, which gave it the strength to take the cleanup and still stay standing,” he said.
Otedola expressed optimism about the bank’s future, noting that the cleanup positions First Bank favourably for the ongoing recapitalisation exercise and sustainable growth.
“Now at First Bank and beyond, we go into 2026 lighter, cleaner, and better prepared for the recapitalisation era and serious growth. Bad loans cleared, strong income engine, long-term thinking — that’s real value creation,” he concluded.
Court Fines First Bank ₦50m for Wrongful Sack, Defamation of Ex-Staff
Meanwhile, the Owerri Division of the National Industrial Court has found First Bank Plc guilty of defaming a former staff member, Mr. Collins Godspower, and wrongfully terminating his employment.
Justice Nelson Ogbuanya, who presided over the case, awarded ₦50 million in general damages against the bank, describing its actions as unfair labour practice and workplace defamation.
Delivering judgment in suit number NICN/YEN/125/2016, the court set aside the employment ban placed on Godspower and ruled that First Bank acted wrongly by forwarding his name and biodata to the CBN as an employee dismissed for fraud and dishonest activities.
Justice Ogbuanya held that the action led to Godspower’s blacklisting under Section 44(4) of the Banks and Other Financial Institutions Act (BOFIA), describing it as “career-damaging and malicious.”
Godspower told the court that his employment was terminated on the grounds of “services no longer required” after he had earlier been suspended and later recalled over allegations of involvement in an unauthorised dollar purchase transaction. He said he later discovered that he was unable to secure another banking job because First Bank had published his name and photograph on its portal and reported him to the CBN as having been dismissed for fraud.
In its defence, First Bank admitted forwarding the claimant’s details to the CBN but argued that it acted in compliance with BOFIA and a regulatory circular. The bank also challenged the court’s jurisdiction.
However, Justice Ogbuanya dismissed the objection, affirming that the National Industrial Court has jurisdiction over employment-related disputes, including workplace defamation.
The court held that recalling the claimant from suspension amounted to his exoneration by operation of law and that there was no justification for portraying him to regulators as having been disengaged for fraud.
“The claimant’s grouse is not merely the termination of employment but the defendant’s overreaching act of publishing his name and photograph and reporting him to the CBN without any indictment,” the judge ruled.
In awarding damages, the court held that the bank’s actions tarnished the claimant’s career, rendered him jobless, and caused severe emotional distress. The court consequently ordered First Bank to set aside the wrongful publications and restrained it from further defamatory actions against Godspower.
