First HoldCo Plc has confirmed to the Nigerian Exchange Limited (NGX) that it has completed the sale of its 100 percent equity stake in FBNQuest Merchant Bank Limited to EverQuest Acquisition LLP, bringing a long-running restructuring of its investment banking and asset management subsidiaries to a definitive close.
The announcement, contained in a regulatory filing dated November 27, 2025, states that all approvals from the Central Bank of Nigeria have now been secured, making the transaction final and formally ending FBN Holdings’ ownership of the merchant banking franchise.
EverQuest Acquisition LLP is said to be a consortium comprising Custodian Investments Plc, Aion Investments, and Evercorp Industries.
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The road to divestment
The journey toward this exit began in September 2024 when FBN HoldCo revealed its intention to sell FBNQuest Merchant Bank as part of a wider portfolio rebalancing effort. At the time, the Group pointed to the need to reinforce its core commercial banking operations, which account for the bulk of its revenue, market share, and long-term growth prospects.
According to a report by Nairametrics:
• EverQuest emerged as the preferred buyer after a competitive bidding process.
• The sale was framed as a “strategic separation” that would streamline the Group’s HoldCo structure.
• The transaction was aimed at sharpening FBN HoldCo’s focus on commercial banking and accelerating its digital banking push.
Analysts were broadly aligned in their view that the divestment was both tactical and overdue. Under the HoldCo model, banks often face higher regulatory capital requirements tied to small subsidiaries. FBNQuest Merchant Bank, contributing less than 5 percent of Group revenue and assets, had long been seen as a business with limited scale relative to the Group’s larger ambitions.
Some analysts have argued that trimming non-core operations would eliminate regulatory drag, support a cleaner capital structure, and help unlock shareholder value. The move also aligned with a wider pattern in the Nigerian banking sector where HoldCos have been pruning subsidiaries to focus on segments with stronger margins and faster digital adoption.
What the completion signals for the market
With the completion of the sale, FBNQuest Merchant Bank is now fully out of the FBN Holdings umbrella. EverQuest Acquisition LLP assumes complete operational and strategic responsibility for the franchise.
The new owners bring a mix of institutional investment backgrounds, and the market will be watching for whether EverQuest adopts a more aggressive expansion stance in corporate finance, structured credit, and capital markets. It is notable that EverQuest is stepping into a merchant banking sector that has grown more competitive, driven by rising demand for advisory services, debt capital structuring, and private-market deals.
The divestment brings immediate clarity to FBN Holdco’s business model. The Group can now redirect capital, talent, and managerial attention toward higher-growth areas, which include commercial banking, consumer lending, agency banking, and payments. This shift fits neatly into a broader strategy of pushing digital financial services more forcefully across Nigeria, where electronic transactions and mobile banking continue to expand.
In addition, the sale reshapes competitive dynamics in merchant banking. EverQuest’s entry adds a new layer of competition to a space heavily influenced by institutions that blend investment banking, capital markets, and structured finance.
Meanwhile, FBN HoldCo’s focus on strengthening its main banking franchise reinforces a broader trend among Nigeria’s tier-one banks. Several have scaled back non-core subsidiaries in response to higher regulatory scrutiny, rising capital thresholds, and the need to maintain leaner operating models.
Legacy and background of FBNQuest Merchant Bank
FBNQuest Merchant Bank began life as Kakawa Discount House before being acquired by FBN Holdings in 2014. It secured regulatory approval to operate as a merchant bank in 2015. Over the years, it has built capabilities in corporate banking, treasury operations, structured finance, and investment banking advisory.
Yet despite its reputation and niche strengths, the bank remained a relatively small piece of the FBN Holdings empire, contributing under 5 percent of Group revenue and assets. The decision to sell it fits within a deliberate, multiyear internal evaluation of how the Group allocates capital under the HoldCo structure.
Looking ahead, with all regulatory and transactional processes concluded, the focus will now shift to two critical issues:
• How EverQuest plans to reposition FBNQuest Merchant Bank in a market where competition is intensifying.
• How FBN HoldCo leverages the released capital and operational clarity to accelerate growth in commercial and digital banking.
The transaction is widely seen as one of the most consequential corporate realignments in Nigeria’s financial services industry this year, setting the stage for both institutions to pursue sharply different growth paths.