Business
First Bank Floats N500b Acquisition Bond
First Bank of Nigeria Plc has planed to use a slated N500 billion ($3.3 billion) bond to fund acquisition both in Nigeria and abroad, according to its chief executive.
The Central Bank of Nigeria said it expects a second round consolidation in the banking industry after the injection of N600 billion ($4 billion) into the sector in August to bail out nine weak banks.
Its Chief Executive, Bisi Onasanya said “if there is any bank in Nigeria that is ready or is adequately prepared for an acquisition, I think there is no other bank than First Bank.
According to him, “We do have plans for an international acquisition, a merger but we also have our own expansion strategy” adding that discussions about an international deal were on-going but declined giving details.
First Bank Shareholders gave approval in August for a bond issuance of up to N500 billion.
He said Nigeria remained the most attractive market in sub-Sharan Africa and that it also intended to continue its domestic consolidation efforts.
The Central Bank injected N400 billion into Afribank, FinBank, Intercontinental Bank, Oceanic Bank and Union Bank on August 14 and sacked top executives after an audit found tax governance had left them so weakly capitalised posing a system risk.
It said on October 2, it was providing a further N200 billion to four more banks – Bank PHB, Equatorial Trust Bank, Spring Bank and Wema Bank – also judged to be facing a grave liquidity risk.
The CBN had said the rescued banks will be run as going concerns until new investors can be found to recapitalise them.
The CBN’s governor Lamido Sanusi said in August his preferred option would be for the rescued banks to be bought by other financial institutions.
It was reported last week that First bank along with Guaranty Trust Bank, United Bank for Africa and Zenith Bank are expected to emerge as clear leaders in the Nigeria banking sector.
The Renaissance capital’s report said it believed the most prized acquisition targets for the top four would include Diamond Bank, Ecobank Nigeria, Fidelity Bank and Skye bank which all passed the CBN’s audit and offered solid niche businesses according to Renaissance.
Edun made the call while speaking at the 2025 Fellowship Investiture of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, where he reaffirmed the federal government’s commitment to sustaining ongoing reforms and expanding access to finance as key drivers of economic growth beyond four per cent.
“We all know that monetary policy under Cardoso has stabilised the financial system in a most commendable way. Of course, it is a team effort, and those eye-watering interest rates have to be paid by the fiscal side. But the fight against inflation is one we all have to participate in,” he said.
The minister stressed the need for banks to broaden credit access and finance innovation-driven enterprises that can create jobs for young Nigerians.
“The finance and banking industry has more work to do because we must finance their ideas, deepen the capital and credit markets down to SMEs. They should not have to go to Silicon Valley,” he said.
The minister who described the private sector as the engine of growth, said the government’s reform agenda aims to create an enabling environment where businesses can thrive, access funding, and contribute meaningfully to job creation.
The facility, known as the Nigeria Actions for Investment and Jobs Acceleration (P512892), is a Development Policy Financing (DPF) operation scheduled for World Bank Board consideration on December 16, 2025.
According to the Bank’s concept note , the financing would comprise $500m in International Development Association (IDA) credit and $500m in International Bank for Reconstruction and Development (IBRD) loan.
If approved, it would be the second-largest single loan Nigeria has received from the World Bank under President Bola Tinubu’s administration, following the $1.5 billion facility granted in June 2024 under the Reforms for Economic Stabilisation to Enable Transformation (RESET) initiative.
The World Bank said the new programme aims to support Nigeria’s shift from short-term macroeconomic stabilisation to sustainable, private sector–led growth.
“The proposed Development Policy Financing (DPF) supports Nigeria’s pivot from stabilization to inclusive growth and job creation. Structured as a two-tranche standalone operation of US$1.0 billion (US$500 million IDA credit and US$500 million IBRD loan), it seeks to catalyse private sector–led investment by expanding access to credit, deepening capital markets and digital services, easing inflationary pressures, and promoting export diversification,” the document read.
The document further stated that Nigeria’s private sector credit-to-GDP ratio stood at only 21.3 per cent in 2024, significantly below that of emerging-market peers, while capital markets remain shallow, with sovereign securities dominating the bond market.
To address these weaknesses, the DPF will support the implementation of the Investment and Securities Act 2025, operationalisation of credit-enhancement facilities, and introduction of a comprehensive Central Bank of Nigeria rulebook to strengthen risk-based regulation and consumer protection.
The operation also includes measures to deepen digital inclusion through the passage of the National Digital Economy and E-Governance Bill 2025, which will establish a legal framework for electronic transactions, authentication services, and digital records.
Beyond the financial and digital sectors, the programme targets reforms to lower production and living costs by tackling Nigeria’s restrictive trade regime. High tariffs and import bans have long driven up consumer prices and constrained competitiveness, particularly for manufacturers and farmers.
Under the proposed reforms, Nigeria would adopt AfCFTA tariff concessions, rationalise import restrictions, and simplify agricultural seed certification to increase the supply of high-quality varieties for maize, rice, and soybeans. The World Bank projects that these measures will help reduce food inflation, attract private investment, and enhance export potential.
The operation is part of a broader World Bank FY26 package that includes three complementary projects—Fostering Inclusive Finance for MSMEs (FINCLUDE), Building Resilient Digital Infrastructure for Growth (BRIDGE), and Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW)—all focused on expanding access to finance, strengthening institutions, and mobilising private capital.