First HoldCo Plc has moved to boost investor confidence by adopting one of the most generous dividend policies among Nigeria’s tier-one lenders, committing to distribute at least 60 percent of its annual profit after tax to shareholders in a bold signal that the group’s two-year restructuring under Chairman Femi Otedola is beginning to yield results.
The policy, approved by the board on July 28 and announced Thursday, comes after Otedola deepened his control of the financial services group through the acquisition of an additional 1.779 billion shares worth N222.2 billion, further strengthening his influence over Nigeria’s oldest banking institution.
The new dividend commitment marks a significant shift in FirstHoldCo’s capital allocation strategy. It is likely to position the group among the most attractive income stocks on the Nigerian Exchange if this trend is sustained.
The board said the policy reflects confidence in the group’s stronger earnings capacity, improved capital position, healthier asset quality, diversified revenue base, and outlook for sustained profitability, although distributions will remain subject to regulatory approvals.
The announcement reinforces growing market expectations that the extensive governance and capital reforms initiated since Otedola assumed the chairmanship are translating into measurable shareholder returns.
