FirstBank MD Foresees Stable Interest Rates and Increased Lending
The Managing Director of First Bank of Nigeria Limited, Mr Olusegun Alebiosu, has expressed strong optimism for the 2026 fiscal year, projecting a period of sustained macroeconomic stability and a significant expansion in credit to the private sector. The FirstBank chief highlighted that the "foundational reforms" of 2025 have paved the way for banks to resume their traditional role as engines of economic growth.
As Nigeria enters 2026, the banking sector is undergoing a massive transformation, driven by the Central Bank of Nigeria’s (CBN) recapitalization mandate. FirstBank’s outlook suggests that the era of extreme volatility is subsiding, giving way to a more predictable environment for both lenders and borrowers.
1. Stability as the New Baseline
The MD noted that the aggressive monetary tightening seen throughout 2025 has begun to successfully anchor inflation expectations.
Interest Rate Normalization: With inflation on a downward trend, FirstBank projects that the Monetary Policy Rate (MPR) will stabilize, allowing banks to offer more competitive and sustainable lending rates to corporate and individual clients.
Naira Predictability: The stabilization of the Foreign Exchange (FX) market is cited as a major "confidence booster," reducing the risk premium that banks previously applied to loans.
2. Strategic Focus on Lending Growth
A key takeaway from the projection is FirstBank’s commitment to increasing its loan book in 2026. The bank intends to prioritize sectors that drive the "Real Economy":
SME Empowerment: Small and Medium Enterprises (SMEs) are expected to be the biggest beneficiaries of this credit expansion, as the bank seeks to support businesses that were resilient during the 2024-2025 "reset."
Manufacturing and Agriculture: In alignment with the Federal Government's diversification goals, FirstBank is positioning itself to fund large-scale agricultural value chains and domestic manufacturing hubs.
3. The Recapitalization Advantage
The MD emphasized that the ongoing recapitalization exercise has made Nigerian banks "stronger and more resilient." With a larger capital base, FirstBank and its peers are now better equipped to handle "big-ticket" transactions, particularly in infrastructure and energy—sectors that were previously reliant on foreign syndications.
Impact on the Real Estate & Housing Market
For stakeholders in the Nigeria Housing Market, this projection from Nigeria’s oldest bank is a critical "Buy" signal:
Lower Cost of Construction Finance: If borrowing rates ease as projected, developers can resume stalled projects without the burden of 30%+ interest rates.
Mortgage Expansion: Increased liquidity in the banking system often translates to a more robust secondary mortgage market. FirstBank’s focus on "lending growth" could mean more accessible home-ownership schemes for civil servants and professionals.
Infrastructure Synergy: Bank-led lending to infrastructure contractors will accelerate the completion of roads and utilities, directly increasing the "Title Value" of properties in suburban Lagos and Abuja.
