Femi Otedola, Chairman of First HoldCo Plc, has defended the company’s decision to write off ₦748 billion in legacy bad loans, a move that resulted in a 92% plunge in the group’s annual profit.
In a statement released on January 31, 2026, via his verified X handle, the billionaire businessman described the massive impairment as a strategic “house cleaning” designed to ensure long-term stability for First Bank of Nigeria’s parent company. The write-off addresses non-performing loans accumulated over several years, which Otedola argued needed to be confronted directly rather than deferred.
Defending the decision, Femi Otedola stated:
“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%.”
He characterized the move as a necessary step for the bank’s future, adding:
“Painful headline, but it is a serious long-term move. We are closing the chapter on messy loans and sending a message that borrowing has consequences.”
The chairman emphasized that the decision aligns with Central Bank of Nigeria (CBN) directives urging banks to strengthen balance sheets ahead of the ongoing recapitalization exercise. He concluded that the institution is now:
“Lighter, cleaner and better prepared for the recapitalisation era and serious growth.”
Despite the sharp decline in reported profit, Otedola highlighted the group’s operational resilience, noting that core business segments remain robust. The group reported ₦2.96 trillion in interest income and ₦1.91 trillion in net interest income for the period.
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