In an update published by BusinessDay, FBN Holdings Plc, the parent entity of First Bank of Nigeria, witnessed its shares undergo the sharpest single-day decline in three months following a strategic decision to “clean” its books. The financial giant reported a significant impairment loss of N748 billion for the 2025 financial year, a move designed to write off legacy non-performing loans and align with stricter regulatory demands from the Central Bank of Nigeria.
Despite the immediate hit to profitability, the bank’s leadership maintains that the gesture is a necessary “one-time pain” for long-term health. The chairman of the group noted that the underlying business remains robust, generating trillions in interest income, but admitted that the transparency regarding old bad debts was overdue. The market reaction has created a rare entry point for investors looking to buy into the country’s oldest commercial lender at a discount.
The development was also extensively tracked by The ICIR and Premium Times. The ICIR highlighted the scale of the write-off, quoting an industry analyst who remarked, “You do not impair N748 billion in one year unless you are closing a messy chapter of the past.” Premium Times added that the move follows intense pressure from the apex bank, reporting that “the CBN is pushing banks to stop kicking problems down the road.”
Echotitbits take: This “big bath” accounting strategy is a bold move by Femi Otedola’s leadership to de-risk the bank once and for all. While it hurts the current share price, it makes First Bank a much leaner and more transparent institution for future foreign investment. Expect other Tier-1 banks to follow suit if they have lingering legacy debts.
Source: Vanguard – https://www.vanguardngr.com/2026/01/why-firstbank-wrote-off-n748bn-bad-loan-otedola/#google_vignette, February 3, 2026
Photo credit: Vanguard
