Otedola Applaud Tinubu, Urges N1 Trillion Bank Capital Hike
Billionaire investor and Chairman of FBN Holdings, Femi Otedola, has publicly endorsed the administration of President Bola Ahmed Tinubu, praising its bold economic policies while urging a N1 Trillion Bank Capital Nigeria increase to strengthen the nation’s financial sector. Speaking in the wake of First Bank of Nigeria achieving the Central Bank of Nigeria’s N500 billion minimum capital requirement, Otedola hailed the government’s regulatory reforms as a catalyst for corporate resilience and long-term economic growth. He expressed confidence that the current fiscal direction could position Nigeria on the path toward a $1 trillion economy, emphasizing that strong financial institutions are central to this vision.
First Bank’s compliance with the N500 billion benchmark represents a milestone in Nigeria’s banking evolution, signaling the industry’s readiness for a higher capitalization era. However, Otedola proposed a strategic leap: he urged the CBN to elevate the capital floor for tier-1 banks from N500 billion to N1 trillion, arguing that this would equip Nigerian banks with the global competitiveness necessary to fund large-scale infrastructure projects and withstand economic shocks.
According to Otedola, a N1 trillion capital base would not only safeguard depositors but also attract cheaper foreign investment, enhance lending capacity, and improve Nigeria’s credit-to-GDP ratio. He noted that while initial skepticism surrounded the recapitalization process, investor confidence has surged, as evidenced by the success of rights issues and public offerings across the banking sector.
The proposal has already stirred discussions among financial analysts, who predict that a N1 trillion threshold could spur mergers and acquisitions, creating a handful of “super banks” capable of competing on the global stage. For Otedola, the recommendation underscores a commitment to scale, stability, and long-term growth, while his public endorsement of President Tinubu signals a strong alignment between Nigeria’s private sector and government policy. The move has resonated with both local and international investors, reinforcing the narrative that Nigeria’s banking sector is ready to take its place among the world’s leading emerging markets.
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