Otedola consolidates control of First Bank, increases stake to 11.64%

Femi Otedola, the chairman of FBN Holdings, has significantly bolstered his influence over the financial services giant by further increasing his stake in the company. In a formal notice to the Nigerian Exchange (NGX), the billionaire confirmed the acquisition of an additional 797,946,415 shares at an average price of N21.58 per share, translating to a formidable transaction value of N17.2 billion.
This recent acquisition elevates Otedola’s total stake to 11.64%, making him the only shareholder with over 10% ownership in the bank. This follows his earlier purchase of shares worth N18.9 billion last week, which had raised his shareholding to 9.41%. Altogether, these transactions have boosted his investment to a staggering N36.1 billion within just a few days. Currently, Otedola controls 4.178 billion shares out of the company’s total outstanding shares of 35.895 billion.
Otedola, one of four Nigerian billionaires listed by Forbes, has invested an estimated N102 billion in FBN Holdings since he began acquiring shares three years ago. His strategic journey towards majority ownership began in October 2021 when he first announced a 5.07% shareholding. By December of the same year, he had increased his stake to 7.57%, marking a significant leap. However, by mid-2022, Otedola decided to reduce his holding to 5.24%, divesting approximately 30% of his shares.
The narrative took a turn in 2023 when Otedola resumed his acquisition spree amidst ongoing controversy over the bank’s majority ownership. A review by the Central Bank revealed that only two shareholders held more than 5% of FBN Holdings shares: Oba Otudeko’s Barbican Capital and Femi Otedola. By the end of the first quarter of 2024, Otedola’s stake had risen to 7.01%, up from 5.65% at the end of 2023, officially surpassing Otudeko to become the largest single shareholder.
The latest acquisition not only underscores Otedola’s strategic acumen but also cements his commanding position with an 11.64% stake in the financial holding company. Previously renowned for his extensive investments in the energy sector, Otedola’s foray into financial services marks a significant diversification of his business interests. This move positions him as the only Nigerian billionaire (in dollar terms) to own a majority stake in a commercial bank in the country. Additionally, he stands as one of the largest shareholders in any financial services company in Nigeria.

Otedola’s investments reflect a broader vision for the future of financial services in Africa. His increasing stake in FBN Holdings aligns with a strategic push to modernize and expand the financial landscape on the continent. By leveraging his expertise and resources, Otedola is poised to drive significant innovation and growth within the sector, potentially setting new benchmarks for financial inclusion and economic development in Nigeria and beyond.
This expansion into financial services is more than a personal milestone; it represents a pivotal moment for the Nigerian banking industry. Otedola’s investments are likely to inspire confidence among other investors and stakeholders, catalyzing further investments and innovations. As he continues to consolidate his holdings, Otedola’s influence is expected to extend beyond the boardroom, impacting strategic decisions that could shape the future of banking in Nigeria.