At 12% in 2025, First Holdings defaults CBN’s non-performing loan ratio threshold

First Holdco Plc closed the 2025 financial year with Non-Performing Loan ratio of 12 per cent from 10.2per cent to default the Central Bank of Nigeria (CBN) five per cent threshold. 

Currently at 13.4 per cent in first quarter (Q1) 2026 which is also above the regulatory requirement 

Most Nigerian’s banks saw a fresh rise in bad loans in 2025 after the CBN withdrew the regulatory forbearance that allowed banks to restructure pandemic-hit facilities without classifying them as non-performing.

First Holdco declared the highest NPL by value in 2025, reporting N1.49 trillion, about 21.1 per cent increase from N1.23 trillion in 2024.  

First Holdco exposure in the Oil & Gas upstream, Oil & Gas services  and Oil & Gas downstream have contributed to significant increase in NPL.  

According to the audited result and accounts for 2025, First Holdco declared an estimated N12.42 trillion gross loans & advances to customers in 2025 , about 2.9 per cent increase over N12.07 trillion reported in 2024.

Group Chairman of First Holdings, Femi Otedola, had justified the company’s decision to write off N748bn in legacy non-performing loans, stressing that the move was a deliberate strategy aimed at securing long-term financial stability, even though it significantly reduced reported profits.

According to the billionaire investor, the write-off was in line with the CBN’s directive encouraging banks to confront non-performing loans openly instead of postponing the issue.