Chairman of First HoldCo, Femi Otedola, has expressed confidence that the financial group will recover strongly despite grappling with non-performing loans estimated at ₦748 billion.
Otedola gave the assurance amid growing concerns over the size of the bad loans and their potential impact on the group’s financial stability. He acknowledged the seriousness of the challenge but maintained that it is not insurmountable, stressing that decisive steps are already being taken to restore the institution to a stronger footing.
According to him, First HoldCo’s management has begun implementing comprehensive risk management and recovery strategies aimed at reducing exposure to bad loans and strengthening the group’s balance sheet. These measures include stricter credit controls, improved loan monitoring, aggressive recovery efforts, and a renewed focus on lending to viable sectors of the economy.
Otedola emphasized that the group’s long history, strong brand, and large customer base provide a solid foundation for recovery. He noted that similar challenges have been overcome in the past through discipline, transparency, and strategic reforms, adding that the current situation presents an opportunity to reposition the institution for long-term sustainability.
The businessman also reassured investors and customers that the group remains operationally stable, with adequate capital buffers and liquidity to continue meeting its obligations. He reiterated his personal commitment to supporting reforms that will enhance corporate governance and restore confidence in the institution.
Financial analysts have observed that while the level of non-performing loans is significant, effective restructuring and improved economic conditions could aid recovery if management remains consistent with reforms. Otedola echoed this view, insisting that with focused leadership and prudent decision-making, First HoldCo will emerge stronger from the current challenges.
He concluded by urging stakeholders to remain patient and supportive, assuring them that the recovery process is underway and that the group is determined to reclaim its position as a resilient and competitive player in the financial sector.