The Federal Government of Nigeria and billionaire businessman Femi Otedola, Chairman of FirstHoldCo Plc, have officially denied involvement in the recent off-market acquisition of a 25% stake in the financial services group, amid widespread speculation that the transaction was facilitated through a government-backed Special Purpose Vehicle (SPV).
The denial comes in response to viral reports on social media and online platforms—excluding Nairametrics—alleging that the federal government, acting through the Office of the Attorney General and the Central Bank of Nigeria (CBN), had orchestrated the N323.4 billion deal through a trustee holding structure.
In a strongly worded statement on Friday, Kamarudeen Ogundele, Special Adviser on Communication and Publicity in the Office of the Attorney General of the Federation and Minister of Justice, described the reports as “false, misleading, resentful, and potentially harmful.”
“The Office of the Attorney General of the Federation and Minister of Justice debunks this falsehood to prevent confusion or misconceptions about FirstHoldCo’s ownership and governance,” the statement read.
Ogundele clarified that neither Attorney General Lateef Fagbemi nor any part of the Ministry of Justice had knowledge of, or participated in, any share purchase relating to FirstHoldCo. He acknowledged that a trustee structure had been approved by the CBN, but emphasized that the government had no direct or indirect role in the transaction.
He confirmed that Renaissance Capital (RENCAP) was appointed by the CBN as an independent third-party manager of the trustee arrangement, and not a proxy for the federal government.
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In a parallel statement, FirstHoldCo Plc, through its Company Secretary Adewale Arogundade, firmly distanced its Chairman and the Nigerian government from the high-profile acquisition.
“The Chairman of FirstHoldCo, Femi Otedola, did not purchase any of the shares in question, nor did the Federal Government of Nigeria or any of its agencies acquire the shares in trust,” the company stated.
According to FirstHoldCo, the sellers of the 10.43 billion shares—representing approximately 25% of the company’s total issued shares—were Barbican Capital Limited and its affiliates, linked to long-standing shareholder Oba Otudeko, along with Leadway Group and its affiliates.
The buyer was confirmed as RC Investment Management Ltd, a Special Purpose Vehicle associated with Renaissance Capital, which executed the block trade off-market on the Nigerian Exchange (NGX) on July 16, 2025. The transaction, priced at N31 per share, was completed across 17 negotiated deals, totaling a market value of N323.4 billion.
Following the announcement, FirstHoldCo’s share price rallied to N32.20 per share, marking a weekly gain of over 20%, driven by investor optimism and speculation about possible strategic shifts in the company’s future.
The transaction also marks the formal exit of Oba Otudeko, who had played a pivotal role in the company and its predecessor entities for years. His departure is seen by some analysts as a signal of changing boardroom dynamics, possibly opening the door to new governance approaches or capital-raising initiatives in line with evolving CBN capital adequacy requirements.
While the deal has been hailed as one of the largest off-market trades in NGX history, it has also sparked rumors and confusion over the identities of key stakeholders behind the acquisition—a narrative both the government and FirstHoldCo have now moved to firmly correct.
Financial analysts have weighed in on the importance of transparency and regulatory clarity to maintain shareholder trust and market integrity, especially given the size of the deal and its potential implications for Nigeria’s financial services sector.
“There’s no doubt this transaction is significant,” one analyst told reporters. “But in a market like ours, clarity is just as important as capital. The rapid spread of misinformation can harm investor confidence and distort perceptions.”
Both FirstHoldCo and the Office of the Attorney General have called on the public and media to rely only on verified information, warning that misleading reports could have serious consequences for financial markets and institutional reputations.
As speculation settles, all eyes remain on RC Investment Management Ltd and what strategic moves may follow the landmark acquisition.
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