FirstHoldCo's N748bn Bad Loans Write-Off Sparks Controversy in Nigerian Banking Sector

FirstHoldCo, a Nigerian commercial bank, faced scrutiny after disclosing a N748 billion bad loans write-off in its unaudited financial results for the year ending December 31, 2025. Despite reporting a 4.8% increase in gross earnings to N3.4 trillion, the bank's profits declined due to higher impairment charges following regulatory forbearance.

The write-off was part of a strategic decision to clean up the balance sheet and boost investor confidence amid evolving regulatory expectations. Chairman Femi Otedola defended the move as necessary to address legacy asset quality issues and strengthen the bank's future performance.

The write-off, though impacting short-term profits, is seen as a prudent step to enhance transparency and asset quality. The bank emphasized its commitment to compliance with Nigeria's financial system stability framework and maintaining customer confidence.

The decision was lauded by some for its long-term value creation and rebuilding trust in the bank.