Otedola eyes majority control of First HoldCo, targets 51% stake

Chairman of First HoldCo Plc, Femi Otedola, has signalled his intention to increase his equity stake in the financial institution beyond 51 per cent, reinforcing his long-term commitment to the lender as it continues its transformation into one of Nigeria’s strongest banking groups.

Otedola made the disclosure in an interview published on Monday, revealing that he has already invested more than N600 billion of his personal wealth in First HoldCo and describing the investment as a “generational commitment” rather than a short-term turnaround strategy.

The billionaire businessman currently holds approximately 26 per cent of the company’s shares, making him its largest shareholder following a series of strategic acquisitions that have coincided with a sharp rise in the bank’s market valuation.

Responding to speculation over whether he plans to consolidate his ownership further, Otedola suggested that majority control remains part of his long-term investment philosophy.

“My investment threshold is always over and above 51 per cent,” he said.

“One of my key investment principles is that firm shareholder control, with due regard for minority interests, is a key ingredient to executing reforms and restructuring to deliver value to all stakeholders.”

First HoldCo’s Transformation

The comments come as First HoldCo recently emerged as Nigeria’s most valuable listed banking group after its share price more than doubled this year, driven by improved financial performance and renewed investor confidence.

READ ALSO; Otedola tightens grip on First HoldCo, acquires 680 million additional shares

Otedola attributed the bank’s resurgence to sweeping governance reforms, aggressive balance-sheet restructuring and recapitalisation efforts initiated after he assumed the chairmanship in January 2024.

According to him, First Bank faced one of the most difficult periods in its history before his investment, burdened by weak corporate governance, insider abuses and a non-performing loan portfolio exceeding N2 trillion.

He said the deterioration in the bank’s financial position became so severe that the Central Bank of Nigeria (CBN) considered regulatory intervention to safeguard depositors and minority shareholders.

“Before 2021, First Bank stood at a genuine crossroads,” Otedola said.

“The bank’s loan book had deteriorated to the point where over N2 trillion in bad loans sat on its balance sheet, compounded by a culture of delinquent borrowers who obtained credit facilities with little intention of repayment.”

He recalled that the CBN eventually dissolved the boards of both First Bank and First HoldCo over governance failures, unresolved insider exposures and breaches of regulatory directives.

Why He Invested

Rather than viewing the crisis as a deterrent, Otedola said he saw an opportunity to rebuild one of Africa’s oldest financial institutions.

He explained that his acquisition of shares was carefully planned and aimed at restoring stability rather than exploiting the institution’s difficulties.

“This was not a hostile or opportunistic move, but a calculated commitment to rescue, rebuild and reposition First HoldCo Plc,” he said.

Since taking over as chairman, Otedola said the board has implemented wide-ranging reforms to strengthen corporate governance, improve risk management and restore market confidence.

He disclosed that the group recognised a one-off impairment charge of N1.7 trillion to clean up legacy non-performing loans while embarking on a recapitalisation programme involving rights issues, private placements and strategic asset divestments.

According to him, the exercise enabled the institution to exceed the CBN’s new minimum capital requirement of ₦500 billion and positioned it towards an ambitious N1 trillion paid-up capital target.

He pointed to the group’s first-half 2026 financial results, which recorded an 83.5 per cent increase in profit before tax to N653.4 billion, while return on average equity rose to 30.4 per cent, which he described as the highest among Nigeria’s leading banking institutions.

He also linked the remarkable appreciation in First HoldCo’s share price to improved corporate fundamentals rather than speculation.

“Our continued buying signals conviction to the market that we are convinced about the future, and this is anchored in our disclosed earnings turnaround, not market sentiment alone,” he said.