₦airaland Forum

FirstHoldCo Plc (the parent company of FirstBank of Nigeria) is pacing toward a historic milestone, with its annualized net income tracking above the ₦1 trillion threshold in the first half (H1) of 2026.

This stellar performance, driven by a sharp decline in impairment charges and a robust surge in core fee income, signals a highly efficient recovery and clears the runway for a potential dividend windfall for shareholders.

The financial services group reported a stunning 83.5% jump in Profit Before Tax (PBT) for the half-year period ended June 30, 2026, reaching ₦653.5 billion, compared with ₦356.1 billion in the corresponding period of 2025. Net profit (profit for the period) matched this explosive trajectory, surging 81.6% year-on-year to ₦526.1 billion from ₦289.8 billion.

Gross Earnings also surged by 17% year-on-year to ₦1.93 trillion from ₦1.66 trillion in Half-Year 2025, while operating income rose by 25.8% to ₦1.38 trillion. Non-interest income rose to ₦497.1 billion, supported by impressive performance across electronic banking, trade services, brokerage, funds transfer and other transaction-led businesses. This complemented a healthy net interest margin of 9.5%, driven by disciplined pricing, an improved funding mix, lower funding costs, and continued optimisation of the balance sheet.

FirstHoldCo reported a high Pre-Tax Return on Average Equity of 37.7%, while Return on Assets surged to 3.63% in H1, 2026. Total Assets jumped 12% in the period to ₦30.64 trillion, as loans and advances rose to ₦9.79 trillion in H1, 2026.

Total customer deposits also rose, hitting ₦21.93 trillion as the tier-one lender used its scale and size to mop up cheap deposits.

Shareholder Equity meanwhile jumped to ₦3.62 trillion, up 10% from ₦3.3 trillion in December 2025.

Another significant and commendable milestone during the period was the restoration of FirstBank’s Capital Adequacy Ratio ahead of schedule, this is evidence of the effectiveness of the Group’s recapitalisation and earnings retention endeavours.

As of June 30, 2026, FirstBank’s Capital Adequacy Ratio stood at 16.7%, while liquidity ratio remained exceptionally strong at 52.2%.

This achievement provides a solid platform for future expansion and strengthens the Group’s ability to support customers, pursue growth opportunities and create long-term value.

The Group’s non-banking businesses continued to gain traction and are now playing an increasingly important role in earnings diversification.

The Investment Banking and Asset Management businesses recorded ₦46.0 billion in gross earnings and ₦27.4 billion profit before tax, supported by an asset base of ₦572.3 billion. These businesses are helping to deepen customer relationships, broaden revenue streams and position FirstHoldCo as a truly diversified financial services group.

The Group Chairman of First HoldCo Plc, Mr. Femi Otedola, CON, described the results as a significant achievement in the Group’s transformation journey.

He posited, “the first half of 2026 marks an important turning point for FirstHoldCo. These results affirm that the bold decisions the Board took to strengthen the institution were the right ones. We are witnessing the benefits of a stronger balance sheet and improved profitability.”

Organic Revenue Optimization over FX Volatility
The quality of FirstHoldCo’s current earnings run is highlighted by its reduced dependence on volatile foreign exchange windfalls. Foreign currency translation gains fell to ₦44.1 billion in the first half of 2026, down from ₦73.5 billion in H1 2025.

Rather than relying on transient macroeconomic shocks, FirstHoldCo’s growth has been structurally anchored by clean operational execution.

Core Net Interest Income:


Reached a highly resilient ₦879.1 billion (despite the lower yield environment due to CBN’s 50 basis-point rate cut, earlier in February 2026), compared with ₦904.8 billion in the prior year’s first half.

Net Fee and Commission Income:
Surged 28.7% to ₦178.5 billion, up from ₦138.7 billion, driven by rising transactional volumes and digital channels.

Other Operating Income: Skyrocketed to ₦136.7 billion from a mere ₦13.1 billion in H1 2025, providing a significant operational buffer.

Disciplined Cost Control and Asset Quality Rebound

The half-year financials show that FirstHoldCo’s aggressive balance sheet cleanup in previous quarters is yielding immediate results. Asset quality improved substantially, allowing the bank to slash its impairment charges for losses by 37.3% to ₦116.1 billion, down from ₦185.4 billion in June 2025.

Another proof point in the risk management capability is the approximately ₦91.9 billion in recoveries during the first half of the year, demonstrating sustained success in extracting value from legacy exposures and reinforcing management’s commitment to prudent risk stewardship.

Simultaneously, management demonstrated intense cost discipline across its operational footprints with the cost-to-income ratio falling to 44.19%, down from 53.78% as at Full Year 2025.

Personnel Expenses: Remained virtually flat, edging up just 5.4% to ₦180.3 billion from ₦170.9 billion.
Other Operating Expenses: Grew at a below inflation and controlled rate of 11.0% to ₦384.6 billion. This disciplined rise in operating overhead is a favorable indicator, showcasing that the group is scaling its massive asset base efficiently without experiencing cost runaways.
Dividend Math and NGX Outlook
For the investment community on the Nigerian Exchange (NGX), the main focus of this earnings release is the dividend math. With half-year net profit sitting at ₦526.1 billion, FirstHoldCo is comfortably tracking to surpass a full-year bottom line of ₦1.05 trillion.

Applied across the group’s 45.47 billion outstanding shares, annualized earnings per share (EPS) is running at approximately ₦23.14.

Under the bank’s traditional capital return models, a payout ratio of 20% to 40% would place a full-year dividend between ₦5.00 and ₦10.00 per share as highly plausible. At these levels, FirstHoldCo would secure its position as one of the most lucrative high-yield dividend plays on the premium board, reinforcing strong institutional demand for its stock as the financial year unfolds.

FirstHoldCo Outpaces Tier-1 Peers with 100.3% Year-to-Date Gains on the NGX

FirstHoldCo Plc has firmly established itself as the top-performing tier-one lender on the Nigerian Exchange (NGX), with its year-to-date (YTD) capital appreciation crossing the triple-digit threshold.

As of the close of trading on Friday, July 16, 2026, FirstHoldCo equity has posted a striking +100.31% YTD return. By comparison Access Holdings is up +19.06%, Guaranty Trust Holding Company (GTCO) +42.45%, UBA +9.24% and Zenith Bank +84.47%.

This explosive upward movement heavily distances the financial holding powerhouse from its immediate Tier-1 banking peers, highlighting a significant divergence in investor sentiment and institutional positioning within the sector.

Wale Oyedeji, the Group Managing Director, said:

“Our H1 2026 performance reflects far more than strong numbers, it demonstrates the resilience of our franchise, the dedication of our people and the success of the strategic actions we undertook to reposition the Group for the future.

Over the past year, we have worked deliberately to strengthen our balance sheet, restore capital, improve asset quality, and enhance operating efficiency. The results show that those efforts are delivering meaningful outcomes and creating a stronger foundation for long-term growth.”

Adding further, Oyedeji said, “we are particularly encouraged by the restoration of FirstBank’s capital adequacy ratio ahead of plan, the continued growth of our transaction-led businesses and the increasing contribution of our Investment Banking and Asset Management franchise.’

With restored capital, strong liquidity, improving asset quality and a diversified earnings platform, FirstHoldCo enters the second half of 2026 from a position of strength. The Group remains focused on disciplined growth, prudent risk management, operational excellence, and the delivery of sustainable value for shareholders and all stakeholders.

FSBoperator:
They said Abuja and not Anambra .

In a massive victory for Nigeria’s capital city modernization campaign, President Bola Ahmed Tinubu, GCFR, is set to officially unveil the Abuja City Walk masterplan during a presidential ribbon-cutting ceremony on Thursday, July 16, 2026.

The high-profile launching event, scheduled from 10:00 am to 3:00 pm, will take place at Plot 28, Cadastral Zone C17 in Abuja’s Industrial Area II.

The event marks the official physical ground-breaking of a 250-hectare mixed-use gateway district strategically sited along the airport corridor. The development is backed by MAG Group (parent of MAG International Links Limited) in joint venture partnership with regional developer Link Developments.

The Saudi Arabian Capital Injection

The presidential launch is expected to secure a critical bilateral funding stream for the megaproject. High-ranking diplomatic and financial delegates will witness the signing of a landmark Memorandum of Understanding (MoU) between Link Developments and H.R.H. Prince Khalid bin Saud bin Khalid bin Turki Al Saud, who is slated to deliver a prominent investors’ address during the session.

The participation of Saudi royal capital, coordinated with commitment remarks from the Nigeria-Arab Gulf Chamber of Commerce (NAGCC), highlights the growing appetite of Gulf-based sovereign wealth and private equity desks for premium Nigerian real estate assets.

By wrapping the 250-hectare development inside a designated Free Trade Zone, the federal government has created a highly secure, tax-advantaged regulatory enclave designed specifically to attract long-term foreign portfolio investments directly at the city’s main international entry point.

A Masterplan of Continental Records

Designed by world-renowned architecture firm Benoy, Abuja City Walk represents one of the most ambitious urban design undertakings in modern African history.

The masterplan features two historic, record-breaking centerpieces:

Africa’s Tallest Tower: A soaring, 450-meter skyscraper designed to serve as a vertical business district, housing luxury hospitality, corporate offices, and residential spaces.

Nigeria’s Largest Indoor Arena: A state-of-the-art 13,000-seat multi-purpose entertainment and indoor sports center structured to position Abuja as a primary destination for global entertainment tours and athletic competitions.

At the core of Phase One is the Art District, which integrates 12,000 square meters of cultural exhibition and performance spaces within a highly walkable, shaded retail loop. The entire development is organized around “The Living Ravine,” an ecological corridor that has already been shortlisted for the prestigious 2026 World Landscape Architecture Awards.

Rather than relying on costly concrete drainage systems, the project utilizes a natural “Sponge District” approach—using swales, floodable wetlands, and green wadis to harvest seasonal rains, slow down stormwater runoff, and keep the public realm comfortably cool throughout the year.

Wike’s Land Speculation Clean-up Pays Off

The rapid progression of City Walk from design to official launch is a direct result of FCT Minister Nyesom Wike’s zero-tolerance policy regarding dormant land allocations. The project is situated on land originally allocated to the Abuja Technology Village. The tract had remained largely undeveloped for over 20 years, becoming highly vulnerable to local land grabbers and administrative bottlenecks.

To unlock the land’s economic potential, the FCT Administration fast-tracked all building controls, finalized the certificate of occupancy, and agreed to construct direct access roads to enable immediate excavation on site. In return, the developers have committed to a strict, phased construction timeline.

With the official launch set to take place this Thursday, Abuja City Walk is poised to become the ultimate symbol of the “Renewed Hope” economic agenda—transforming the capital’s gateway into a multi-billion-naira engine of jobs, tourism, and foreign direct investment.

Related Video: For a deeper look into the administrative background and the official signing ceremony, you can watch this report on the FCTA and MAG International MoU Signing Ceremony. This broadcast highlights FCT Minister Nyesom Wike’s regulatory expectations and outlines how the project will reshape the Lugbe corridor.

MCentral:
Congrats to President Bola Tinubu reforms for this great feat!! Nigeria stocks are number 1 in the world in terms of dollar returns.

MCentral:
Nigerian equities have overtaken South Korea to secure the highest dollar-based returns in the world this year. The milestone arrives as cooling international sentiment on artificial-intelligence hardware components pushes the Asian nation’s previously white-hot equity market into a technical bear market.

According to index data compiled by Bloomberg tracking 92 global stock exchanges, the benchmark index in Africa’s largest oil producer has posted a spectacular 67% return in dollar terms year-to-date.

That performance pulls it just ahead of South Korea’s benchmark Kospi index, which has seen its year-to-date dollar gains compressed to 66% following a severe tech-driven liquidation.

The stark divergence underscores a broader macro rotation. While the export-heavy Kospi plunged into an official bear market this week—shedding 22% of its value since its June 19 peak as global asset managers pulled out of semiconductor heavyweights—the Lagos-based bourse has remained completely insulated from global tech anxieties.

Insulated From the Silicon Valley Shock

The core of Nigeria’s investment appeal lies in its absolute lack of direct exposure to the hyper-volatile artificial intelligence supply chain.

While South Korea’s equity markets and the won—which has weakened 5% year-to-date—suffer from systemic questions regarding the long-term commercial sustainability of AI infrastructure capital expenditures, buyers on the Nigerian Exchange (NGX) are trading on entirely different micro and macro catalysts.

Domestic financial services firms and insurance counters have aggressively led the local index expansion. Most notably, Fortis Global Insurance Plc has handed global portfolio managers outsized, near-unprecedented returns of 1,400% in dollar terms over the period, highlighting the intense domestic accumulation sweeping through the financial sector.

A Structural Reform Tailwind

The underlying foundation powering the 67% dollar rally is a combination of continuous domestic macroeconomic reforms, structurally elevated oil prices, and vastly improved liquidity within the official foreign-exchange window.

Unlike previous commodity booms where local equity gains were rapidly cannibalized by currency depreciation, the Central Bank of Nigeria’s hawkish monetary tightening has successfully stabilized the local currency.

The Naira has clawed back 4% against the greenback since January, meaning international investors are capturing pure capital appreciation without seeing their returns eroded by foreign exchange translation losses.

Institutional momentum received a secondary boost following announcements that S&P Dow Jones Indices is formally considering upgrading Nigeria out of its “Standalone” category back into its premier Frontier Market index.

This potential regulatory reclassification is coinciding with intense pre-IPO positioning. Global asset managers are aggressively building liquidity buffers ahead of the highly anticipated dual-listing Initial Public Offering (IPO) of the Dangote Petroleum Refinery, a megaproject poised to become the largest single equity listing in African capital market history.

With the global tech trade experiencing structural headwinds, Nigeria’s reform-driven industrial and financial landscape has evolved from a frontier afterthought into a high-yielding sanctuary for global macro allocators seeking structural growth decoupled from Wall Street’s tech valuations.

https://moneycentral.com.ng/exclusive/article/nigerian-stocks-are-worlds-top-performers-in-dollars-eclipsing-south-koreas-kospi/

FIRSTSECOND:
23% is small. What is the percentage of its finance cost on sales or how much of the 23% is finance cost.

If the refinery is having 23% EBITDA, it means the refinery can make loss as per accounting profit, considering its high depreciation on its asset.
If he can release its financials..we will analyse wella.

My take.

The Dangote Petroleum Refinery and Petrochemicals complex has established itself among the world’s most profitable downstream assets, printing a striking 23% EBITDA margin last year according to people with knowledge of the company’s finances.

The blockbuster profitability figures emerge just as the mega-refinery advances plans to raise as much as $2 billion in what would be Africa’s largest-ever initial public offering (IPO). The impending debut has triggered an unprecedented investor frenzy across Nigeria, cutting through institutional asset managers down to first-time retail accounts.

Highlighting the intense interest among Nigeria’s financial elite, billionaire tycoon Femi Otedola revealed he is preparing a $100 million anchor investment. “I have appealed to Dangote,” Otedola said at a briefing at the Refinery complex attended by MoneyCentral, noting he requested Aliko Dangote to allocate him the $100 million stake through a private placement ahead of the public listing.

The Margin Sustainability Question

While a 23% margin places Dangote at the absolute peak of global refining efficiency, equity strategists warn that whether these returns prove durable remains a high-stakes open question.

The facility has operated at commercial scale for only a brief window and has yet to navigate a full, unshielded commodity cycle. Downstream refining margins are historically highly cyclical and vulnerable to swift compressions driven by shifting global crude prices, local regulatory adjustments, and evolving fuel demand.

Furthermore, some of the refinery’s recent earnings momentum was supercharged by geopolitical anomalies. Severe supply-chain disruptions and shipping re-routings linked to the conflict in the Middle East created structural arbitrage windows that favored large Atlantic basin processors.

Aliko Dangote candidly acknowledged this macro tailwind in a recent interview with Nicolai Tangen, CEO of Norges Bank Investment Management, stating that the crisis in the Middle East had been “beneficial” for the combined refinery, fertilizer, and petrochemical operations.

A Generation-Defining Market Test

The planned $2 billion share float on the Nigerian Exchange will serve as a definitive litmus test for domestic and regional capital depth. Absorbing a multi-billion-dollar industrial asset requires deep, sustained liquidity that will push the boundaries of local pension funds and international frontier-market allocations alike.

Should the asset successfully preserve its top-tier margins as global supply chains normalize, it will fundamentally redefine corporate equity valuations across sub-Saharan Africa.

A successful IPO that values the asset in the $40 billion range, will see the Nigerian Exchange (NGX) leapfrog Morocco’s Casablanca Stock Exchange to become the second-largest equity market in Africa.

According to data compiled by MoneyCentral, South Africa’s Johannesburg Stock Exchange (JSE) maintains its long-standing, dominant pole position with a market capitalization of $1.52 trillion. However, a spectacular 51% year-to-date rally has pushed the total value of the NGX up to $111.5 billion, neck and neck with Morocco’s $114 billion valuation as international capital targets structural reforms in West Africa.

The Bottom Line: Dangote Refinery has proved its engineering and initial margin capabilities, outperforming global peers on an EBITDA basis. However, as the company transitions toward its historic $2 billion IPO, public market investors must differentiate between long-term operational efficiency and transient geopolitical tailwinds. Otedola’s $100 million bid signals absolute local confidence, but international capital will demand proof that a 23% margin can survive a cooling commodity market.

Arostar2023:
8

Very cheap except for the cow, abi? Maybe dem go thief the cow. There’s nothing cheap about what I am seeing up there. I married from Owerri, in the east, and I don’t believe I spent up to half of what is on that list. Btw, marriage list and rites depends on the bride’s family. No matter what the community set as whatever list, the bride’s family has the final say. There’s always a way of waving certain things aside.

zoedew:
How is the hardest working Oga moniepoint doing?

Jim Ovia, who built Nigeria’s biggest lender by market value, is turning his attention to the Lagos skyline, declaring that “real estate is more profitable than banking” as he advances two luxury residential developments selling out on the Lagos lagoon.

Through his Quantum Luxury Properties Ltd. business, the Zenith Bank Plc founder is building the 26-floor Metropolitan Towers residential development, where units start at $1.85 million.

He’s also completing the 44-unit Quantum Luxury Towers high-rise, where apartments go from $2.8 million. Both properties are on the same Lagos lagoon where he constructed Civic Towers and Civic Center, which holds events, and the new projects are selling out, Ovia said.

Zenith Bank transition

The 74-year-old stepped down as Zenith’s chairman on May 5, completing the maximum 12-year tenure in that role.

He remains the bank’s largest individual shareholder, suggesting this is far from a clean break with the institution he ran as chief executive officer for two decades.

With banking handed off, Ovia’s latest real estate investments follow earlier bets that paid off, including selling Visafone Communications to MTN Group Ltd. a decade ago and an early bet on Moniepoint Inc., the Nigerian fintech that became a unicorn last year.

Housing deficit driver

Africa’s most-populous nation is grappling with a housing deficit of more than 20 million units, helping drive up property values across income levels. This shortage is creating strong demand for luxury properties in Lagos, where Ovia’s new developments are selling out.

Investment track record

“I’m moving into real estate full-time,” Ovia said in an interview with Bloomberg.

His move follows a series of successful investment exits: selling Visafone Communications to MTN Group Ltd. a decade ago and making an early bet on Moniepoint Inc., the Nigerian fintech that became a unicorn last year. These precedents suggest Ovia has a proven ability to identify high-growth opportunities and exit at peak valuations.

Ovia’s declaration that real estate is more profitable than banking reflects the lucrative returns available in Nigeria’s luxury property market, where a 20 million-unit housing deficit is driving up values.

The fact that both Metropolitan Towers and Quantum Luxury Towers are selling out at prices starting from $1.85 million signals strong demand among Lagos’s wealthy buyers and expatriates for high-end residential properties.

Originalsly:
We seem to be proud and very supportive of consuming and spending sooo much on a foreign unhealthy food. It is cheap and it is nice ... we don't care about the ingredients and the health issues ... until the doctor tells us about it.... then we run to the public for help to get kidney transplant. If you think the government is concerned about your health ... think again. They are not concerned about the food content... they are not concerned about health risks ... they are not concerned about local production or Dangote s noodles would've been on the market and Dufil poison shut out by tariff and content. Dufil noodles need to be banned for content..... and to boost local foods. The Singapore and Indonisia and US owners are laughing all the way to the bank while we are suffering but celebrating their successful exploitation of us. Something is wrong with us

Dufil Prima Foods Limited has cemented its dominant market position in Nigeria’s noodles sector, accounting for over 60% market share, which has underpinned sustained revenue growth and strong cash generation despite intensifying cost pressures in recent times.

Revenue grew 30% to ₦1.1 trillion ($697.3 million) in 2025, supported by inflation-induced price reviews and gradual volume recovery, according to data seen by MoneyCentral.

However, rising cost pressures from higher input costs and elevated marketing expenses targeted at boosting sales volume translated to a contraction in both absolute EBITDA and EBITDA margin to ₦84.5 billion (2024: ₦92.7 billion) and 8% (2024: 11.4%) respectively in 2025.

Market position

Dufil’s competitive position is anchored on its leading market position in Nigeria’s noodles industry, where it accounts for over 60% market share.

The group benefits from a strong customer base, an extensive distribution network and consistent promotional activities that have strengthened brand equity and deepened market penetration. Strong shareholder support continues to underpin supply chain stability and foster ongoing product development, sustaining the brand’s appeal to young demographics in Nigeria.

Revenue concentration

These strengths are partly offset by high revenue concentration, with noodles accounting for more than 74%, while other business lines—including flour, pasta, snacks, packaging and palm oil—contribute a combined 26% in 2025. Analysrs expect noodles to remain a dominant contributor to topline, supported by plans to expand noodle production capacity in 2026.

Nevertheless, the completion of the flour plant expansion in Q3 2026 is expected to modestly increase the contribution of the flour business and support margins in the snacks segment.

Future outlook

Given the recently established pricing base, with no expectation of broad-based price increases in the near term, analysts expect future revenue growth to largely be driven by higher traded volume on the back of the proposed increase in production capacity. This, combined with more stringent cost control measures as evidenced during Q1 2026, should contain EBITDA margins around 9% over the outlook period.

Debt management

The leverage and capital structure assessment remains negative though evidencing improving debt management lately. Gross debt reduced to ₦96.2 billion on 31 December 2025 (31 December 2024: ₦163.6 billion) and further to ₦79.6 billion in Q1 2026, driven by management efforts to deleverage its balance sheet from expensive borrowings.

The modest debt level, complemented by substantial cash balances and sustained robust earnings, translated to an improvement in leverage metrics.

Liquidity position

The liquidity position has slightly improved on robust cash holding of ₦44.6 billion (including restricted cash of ₦20.8 billion) as of March 2026, adequate to cover the anticipated short-term debt obligations of ₦47.9 billion over the next nine-month period to 31 December 2026.

Although refinancing risk remains high with short-term debt accounting for above 40% of total debt, liquidity is further supported by sizable, unutilized committed facilities of ₦106.5 billion indicating the company’s wide access to funding sources.

The anticipated higher capital spending of ₦32.5 billion over the next 21 months to December 2027, as well as projected higher dividend payments in view of robust prior-year profits, is sufficiently covered by the projected robust operating cash flow.

Outlook

Dufil Prima Foods’ 60% noodles market share provides a durable competitive moat, but the company’s heavy revenue concentration in a single product line exposes it to volume shocks and pricing pressure.

The 30% revenue growth in 2025 was driven primarily by price increases rather than volume, and with no broad-based price increases expected in the near term, future growth will depend on production capacity expansion and market share gains.

The flour plant expansion completion in Q3 2026 should modestly diversify revenue and support snacks segment margins, but noodles will remain the dominant revenue driver. Investors and creditors will monitor the company’s ability to execute its production capacity expansion while maintaining EBITDA margins around 9% in an environment of elevated input costs and marketing expenses.

KingRoiz:
I learnt Moniepoint is bigger than Zenith ,how come they didn't include OPay and Moniepoint there? Abi dem de fear

Osgilliat:
That explains why redemption request was executed same day yesterday. I was surprised.

The combined balance sheets of Nigeria’s top ten commercial banks expanded to ₦202 trillion (approximately $147 billion) in the first quarter of 2026.

This monumental asset surge reflects broader financial system liquidity, the inclusion of newly acquired regional assets, and balance sheet adjustments forced by the Central Bank of Nigeria’s (CBN) newly completed structural recapitalization cycle.

What’s driving the numbers

Access Holdings led the pack with ₦53.43 trillion in assets, followed by United Bank for Africa at ₦33.13 trillion and Zenith Bank at ₦32.01 trillion.

FirstHoldCo Plc reported ₦26.87 trillion, Guaranty Trust Holding Company ₦18.75 trillion and Fidelity Bank ₦11.35 trillion.

Rounding out the top 10 were Stanbic IBTC HoldCo (₦9.7 trillion), FCMB (₦7.54 trillion; December 2025 figure), Wema Bank (₦5.23 trillion) and Sterling Bank (₦4.07 trillion).

Composition and implications

Investment securities, loans and advances, and cash and bank balances were the major components of the asset bases, underscoring a mix between liquidity buffers and interest-earning assets.

The concentration at the top — with Access Holdings’ balance sheet more than 1.6 times the size of the next largest lender — highlights the increasing scale advantage enjoyed by a few groups, a factor that can drive pricing power in corporate and wholesale markets.

The Top-10 Banking Asset Leaderboard (Q1 2026)

The industry remains heavily top-heavy, with the traditional “FUGAZ” elite five capturing 81.25% of the entire asset pool of the top ten banks.

Macro Implications & Investor Impact

Bigger balance sheets bolster capacity to underwrite large corporate credits and deploy capital across regional opportunities, but they also raise scrutiny on asset quality and capital adequacy as banks chase growth.

Investors will monitor how the largest lenders manage risk-weighted assets, provisioning and funding costs, particularly if macro pressures or higher interest rates test asset-quality resilience.

This scale of capital accumulation however provides a vital protective shield for Nigeria’s broader economic system as it enters the second half of the year.

Fund Syndication Moats:
The ₦202 trillion asset base allows the local banking industry to single-handedly anchor mega-scale real-sector projects. High-profile transactions like the upcoming $11 billion Dangote Refinery expansion can now be comfortably syndicated internally using localized trade finance structures.

The Frontier Inflow Window:
These immense asset sizes line up perfectly with FTSE Russell’s upcoming September reclassification of Nigeria back to Frontier Market status. Because Chapel Hill Denham’s recent data shows that banks like Access, UBA, continue to trade at steep discounts (0.36x to 0.45x Price-to-Book), these massive balance sheets make the Nigerian banking index an appealing target for incoming global index-tracking funds.

Coscharis Group Chairman and Chief Executive Officer Cosmas Maduka has expanded the Nigerian conglomerate’s reach into Japan’s manufacturing sector by taking a stake in Izumi Chain Mfg. Co., according to the company’s recent activity and public materials seen by MoneyCentral.

The move adds a new industrial dimension to a business empire that began in 1977 as an importer and distributor of Japanese auto spare parts and accessories. It also aligns with Coscharis’s long-running presence in automotive and industrial machinery, suggesting a push beyond distribution into direct production capabilities.

Industrial Link

Izumi Chain Mfg. is an Osaka-based manufacturer founded in 1916, with a century-long history in industrial, automotive, motorcycle and bicycle roller chains. Its product line includes standard roller chains, stainless steel chains, automotive timing chains and high-performance bicycle and track chains.

By deepening ties with a Japanese original equipment manufacturer, Coscharis is positioning itself closer to the source of precision components and hardware used across transport and industrial applications. That could help support quality control, sourcing and technical know-how for its broader business operations.

Nigeria Angle

The investment also carries symbolic weight for Nigeria’s manufacturing ambitions, where access to technology, reliable supply chains and industrial partnerships remain major constraints. A direct link to a Japanese OEM may help Coscharis bridge global production standards with local market needs.

Maduka’s reported move to spend time in Japan underscores how hands-on the strategy appears to be. It also signals that the company is treating manufacturing not just as a trading opportunity, but as a platform for long-term industrial expansion.

Nigeria’s NGX All-Share Index has rocketed 66% in dollar terms this year, with 12-month gains nearing 200% and a market capitalization of $104 billion that has surpassed New Zealand’s and now rivals Portugal and Ireland in size.

This historic outperformance by Nigerian capital markets is being driven by the aggressive execution of President Bola Tinubu’s economic agenda.

By dismantling long-standing distortions—such as the fuel subsidy and a fragmented foreign exchange regime—Nigeria has transitioned from a “credibility discount” to a primary destination for emerging-market capital.

Market Performance Snapshot

Nigeria’s financial indicators reflect a significant return of investor confidence, further bolstered by surging oil prices amid the ongoing Middle East conflict.

Local-currency bonds have returned 14% in dollar terms year-to-date, outperforming all major emerging markets except Argentina and Brazil, while the naira currency has strengthened almost 6% and ranks as Africa’s No. 2 performer behind Zambia’s kwacha.

Nigeria’s dollar bonds have returned 5%, compared with an average of 1.3% for emerging markets, according to Bloomberg indexes.

Economic growth will accelerate to 4.1% this year, compared with 3.3% when Tinubu came into office three years ago, according to the International Monetary Fund.

Investors Return

Foreign inflows into Nigeria equities surged to ₦181.8 billion in March 2026, more than doubling the February figure of ₦72.3 billion.

“Nigeria is transitioning from a credibility discount to an execution story,” said Romain Bordenave of Edmond de Rothschild.

Corporate Sector Stars

Sector leaders in cement, banking, and energy have seen triple-digit gains as they capture the “growth dividend” of the current administration.
Bua Cement Plc is up 140%, Zenith Bank Plc has climbed 104% and MTN Nigeria Communications Plc, a mobile-phone provider, has gained 57%. Oil and gas exploration company Seplat Energy Plc has almost doubled, while rival Aradel Holdings Plc has soared 172%.

Strategic Catalysts: FTSE and Dangote

Two major structural events are expected to institutionalize these gains and provide a massive injection of liquidity into the market by late 2026:

FTSE Russell Reclassification:
Nigeria will be reclassified to Frontier Market status in September 2026. This move will trigger automatic inflows from global index-tracker funds that have been on the sidelines.

Dangote Refinery IPO: Aliko Dangote has confirmed plans to float 10% of the refinery (valued between $25bn–$45bn) on the Nigerian Exchange, with secondary listings elsewhere in Africa. This listing alone could increase the total market cap of the NGX by over 30%.

Macroeconomic Outlook

The IMF projects Nigeria’s GDP growth to accelerate to 4.1% this year. This optimism is supported by:

Credit Rating
Upgrades: Upgrades from Moody’s and Fitch in 2025, which lowered the sovereign risk premium.

Oil Windfall:
Higher global crude prices have provided a fiscal buffer, supporting the naira and government revenue.

FirstHoldco Plc delivered a masterclass performance in its first-quarter 2026 financials, recording a 72% year-on-year profit before tax (PBT) growth

Profit before tax (PBT) jumped to ₦321 billion from ₦186.47 billion in the corresponding period of 2025, supported by steady interest-earning capacity and robust fee income generation.

The first quarter of 2026 marked a definitive pivot for FirstHoldCo Plc, as the parent entity of Nigeria’s oldest commercial bank re-established itself as a financial powerhouse.

Emerging from a period of aggressive balance sheet restructuring characterized by massive legacy debt write-offs in late 2025, the group’s Q1 2026 performance represents a “phoenix-like” Strategic reset.

Post its 2025 balance-sheet cleanup, FirstHoldco’s Q1 2026 results also established the group as the second-largest Nigerian lender by absolute profit before tax, trailing only Zenith Bank.

In Q1, 2026, Zenith Bank reported PBT of ₦360.91 billion, FirstHoldCo ₦321 billion, GTCO ₦302.89 billion, Access Holdings ₦272.2 billion and UBA ₦160.65 billion.

This renaissance is not merely a product of the high-interest-rate environment currently prevailing in Nigeria, where the Central Bank of Nigeria (CBN) has maintained its hawkish stance with a 26.5% Monetary Policy Rate (MPR) to anchor inflation.

Rather, it is the result of a deliberate “kitchen-sinking” of bad assets in the 2025 financial year, which saw the group take a historic ₦826.3 billion impairment charge to resolve historical asset quality concerns once and for all.

This strategic “cleansing” has liberated the balance sheet to capture the full upside of the current lending cycle, allowing FirstHoldCo to lead the market in the most critical measures of shareholder value creation.

The Profitability Outperformer: Return on Equity Leadership

FirstHoldCo’s standout metric for the first quarter of 2026 is its Return on Equity (ROE). This parameter serves as the ultimate barometer for management’s ability to generate earnings from the capital entrusted to them by shareholders.

For Q1 2026, FirstHoldCo delivered a post-tax ROE of 31.6%, effectively eclipsing the entire FUGAZ group. This represents a staggering turnaround from the 4.6% recorded in December 2025, which was heavily weighed down by the balance sheet reset.

The leadership in ROE is particularly noteworthy given the simultaneous recapitalization efforts across the industry, which naturally exerts downward pressure on ROE and indicates that FirstHoldCo’s earnings power is scaling faster than its capital dilution.

The Revenue Engine: Optimized Asset Mix

FirstHoldCo’s outperformance is structurally rooted in its superior asset yield, particularly within its loan book. Unlike some peers who have historically relied on the “carry trade” of government securities, FirstHoldCo has aggressively pivoted toward private sector credit. In Q1 2026, the group generated ₦466 billion in interest income from loans and advances to customers, representing a 28% increase from the prior year.

This growth in customer loan income is significantly higher than that of its closest rivals. FirstHoldCo is finding higher-quality lending opportunities in a tight liquidity environment.

Operational Resilience

FirstHoldCo’s Cost-to-Income Ratio (CIR) improved remarkably from 53.8% in late 2025 to 45.2% in Q1 2026. While it still trails GTCO (the industry efficiency benchmark at 30.9%) and Zenith (43.5%), it has significantly outperformed Access Corp (55.8%) and UBA (61.2%).

The improvement in FirstHoldCo’s ratio is even more impressive when considering that its total operating expenses rose 21% year-on-year to ₦298 billion. The key to this outperformance is “positive operating leverage”—the group’s net earnings grew by 41%, effectively “outrunning” its expense growth.

Recovery and Credit Quality

The most profound turnaround in FirstHoldCo’s financial profile is found in its “Other Non-Interest Income,” specifically the “Recoveries” line item. In Q1 2025, the group reported a modest ₦1 billion in loan recoveries; by Q1 2026, this figure surged by 1570% to ₦19 billion.

This outperformance in debt recovery is a direct consequence of the 2025 balance sheet reset. Having aggressively written off legacy non-performing loans (NPLs), the bank’s specialized recovery units are now clawing back value from these assets, which flows directly to the bottom line as non-interest income.

Balance Sheet Dynamics: Liquidity and Funding

FirstHoldCo’s balance sheet reflects a bank that is both liquid and well-positioned for the “normalization” phase of the economy. Total assets stood at ₦26.8 trillion in March 2026, a slight 2% decline from December 2025, primarily due to the strategic balance sheet management.

FirstHoldCo Resets and Positions for Growth in 2026 and Beyond

By taking the painful but necessary steps to reset its balance sheet in 2025, FirstHoldCo Plc has entered 2026 as a leaner, more profitable, and more efficient competitor.

Its leadership in ROE and PBT growth is not an accident of the market but a direct result of management’s focus on high-yield customer lending and aggressive asset recovery, making it the industry’s most efficient engine for creating shareholder value.

As the benefits of the group recapitalization takes hold and the market digests its Q1 results, the current valuation gap between FirstHoldCo and other tier-one rivals like Zenith and GTCO is expected to narrow.

Georgry:
South Africa and Egypt are out producing Nigeria who has up to 4 times their population, Nigeria is, simply put, not a productive country.

however population doesn’t create productivity systems do. Nigeria has almost four times the people, yet these countries produce more because their infrastructure actually works.

Nigerians are naturally productive people, but how far can productivity go when the most basic structures are missing? Look at electricity alone.

The epileptic power supply is destroying small businesses. A friend running a dry-cleaning shop is spending huge amounts on generators and fuel every week. In Nigeria, the cost of energy compared to income is one of the highest anywhere in the world.

The same thing applies to transportation. Why can’t someone stay in Auchi and easily sell to a bigger market like Benin, which is just about 126 km away? A trip that should take under three hours becomes a major challenge simply because the roads are terrible. Bad infrastructure closes markets and suffocates growth.

Access to capital and high initial start-up cost due to inflation is also a problem, it will cost you over 1 million naira to start a dry cleaning business (basic business) Not because the business is naturally expensive, but because you're forced to provide power, water, security, and other things the system should already have and come to think about it, how many people has 1 million naira in Nigeria?

Nigeria’s problem isn’t that its people are lazy or unproductive. The real challenge is that we are operating in an environment where you must first build your own mini-government before you can run a simple business. Until basic infrastructure is fixed, productivity will remain low, and growth will continue to be slow.