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Group Chairman of First HoldCo Plc, Femi Otedola has declared his intention to eventually acquire a majority stake in the Group, saying his long-term investment approach is to own more than 51 per cent of companies in which he invests, after committing more than $430 million of his personal wealth to Nigeria’s oldest banking group.
Otedola revealed this in a recent interview, days after he increased his shareholding in First HoldCo to 25.87 per cent through a series of share acquisitions, further strengthening his position as the company’s largest shareholder. “If you look at my antecedents, my investment threshold is always over and above 51%,” Otedola said, adding that he is pursuing the same strategy with First HoldCo.
His remarks provide clear indication yet that he intends to pursue controlling ownership of the parent company of First Bank of Nigeria, one of Africa’s oldest financial institutions, as the lender continues to strengthen its market position amid ongoing reforms in Nigeria’s banking sector.
The latest acquisitions followed transactions on July 22 and subsequent trading sessions, during which Otedola purchased more than 2.48 billion additional shares in the banking group. The purchases increased his beneficial ownership to about 11.76 billion shares, equivalent to 25.87 per cent of the company’s issued share capital.
The additional investment, estimated at nearly N300 billion, brings Otedola’s total commitment to First HoldCo to more than N586 billion, or approximately $430 million. “That figure speaks not to speculation but to unflinching confidence in the institution’s future and my unwavering commitment to its success,” he said.
Founded in 1894, First Bank is Nigeria’s oldest banking institution and one of Africa’s longest-standing financial services groups. Through First HoldCo, the group operates across several African markets and maintains international operations supporting trade, investment and correspondent banking activities.
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The bank has also recorded a notable turnaround in recent years following a period marked by governance challenges and ownership disputes. Improved financial performance, stronger corporate governance and renewed investor confidence have supported its recovery.
The transformation gathered further momentum this year as First HoldCo became the first Nigerian banking group to exceed a market capitalisation of N6 trillion, overtaking its peers to emerge as the country’s most valuable listed lender.
Otedola’s strategy mirrors his previous investments in Nigerian companies where he gradually built controlling interests before implementing strategic changes. He previously increased his ownership in Forte Oil before restructuring the company, while he also raised his stake in Geregu Power to about 95 per cent ahead of its listing on the Nigerian Exchange Limited.
Unlike those earlier investments, however, Otedola indicated that his investment in First HoldCo is intended as a long-term commitment rather than an eventual exit. His growing stake also coincides with the Central Bank of Nigeria’s banking recapitalisation programme, which has encouraged lenders to strengthen their capital base and attract fresh investments. Improved earnings across the sector and sustained investor demand for banking stocks have also supported the recent appreciation in banking share prices.
Market analysts note that while Otedola has publicly expressed his preference for majority ownership, increasing his stake beyond 51 per cent would require further acquisitions and would likely be subject to regulatory approvals, given the systemic importance of First HoldCo within Nigeria’s financial system.
