Firstsholdcoco Bersagli exit from tolerance, Sol Breach by 2025

FIRSTTHOLDCO PLC has reaffirmed its commitment for regulatory compliance, undertaking to resolve all the outstanding issues relating to the prudential requirements of the Nigeria Central Bank (CBN), including violations of the limit to the sole debtor (Sol) and the loss on credit lines.

The financial company has also ensured shareholders with its intention to support dividends payments from 2025 and beyond.

In a corporate dissemination issued on Thursday 19 June 2025, Firstholdco clarified that the Violation Sol recorded by its peak bank branch, Firstbank, derived from two loans in foreign currency which were significantly influenced by the clear devaluation of the Naira by over 200 % between 2023 and 2024.

To deal with the problem, the group has declared to actively pursue a capital increase, which should be completed in the second half of 2025

As regards the credit lines currently under regulatory tolerance, FirstHoldco has explained that the loans concerned are part of larger union exhibitions that involve more financiers in the sector.

According to the declaration, the Consortium is already working in collaboration to renovate and considered these structures based on a better performance of the activities and the cash flow strengthened by the underlying projects.

“All the activities are back to active production and generation of appreciable revenue,” observed the company. “Some of the underlying projects also have credits waiting for an agreement by relevant government agencies.”

The company added that the renovation exercise should be concluded in the financial exercise of 2025. If any loan does not meet the criteria for renovation, Firstholdco has declared that it will make a complete supply to ensure a clean exit from the CBN tolerance regime.