Otedola Eyes Over 50% Stake in First Holdco, Says He Has Invested Over N600 Billion in Bank

•Says lender’s turnaround has reset its governance, profitability

Emmanuel Addeh in Abuja

Billionaire investor and Chairman of First HoldCo Plc, Mr. Femi Otedola, has disclosed plans to increase his stake in the financial services group beyond 50 per cent, declaring that he has no intention of exiting the institution in the near future as he did with some of his previous investments.

In an interview with Nairametrics, Otedola said he had already committed more than N600 billion of his personal wealth to First HoldCo and remained convinced that the institution was on course for sustained growth following an extensive clean-up of its balance sheet, recapitalisation and governance reforms.

Otedola said his investment philosophy has always been to acquire controlling stakes in companies to enable him execute far-reaching reforms capable of delivering long-term value to shareholders. Otedola currently holds a 28.5 per cent stake in the group.

“I am sure that you can see from my antecedents that my investment threshold is always over and above 51 per cent. One of my key investment principles is that firm shareholder control with due regard for minority interest is a key ingredient to executing reforms and restructuring to deliver value to all stakeholders,” he said.

He cited his investments in African Petroleum Plc, later renamed Forte Oil Plc, where he increased his shareholding from 28 per cent to 75 per cent before divesting in 2019, as well as Geregu Power Plc, where he built his stake from 51 per cent to 95 per cent before reducing it to 77 per cent after the company’s public listing.

“I am on the same trajectory with First Holdco Plc. To date, I have invested over N600 billion of my personal wealth in First Holdco Plc, a figure that speaks not to speculation, but to unflinching confidence in the institution’s future, fundamentals and an unwavering personal commitment to its success,” he added.

Otedola also dismissed suggestions that he could eventually sell his investment after completing the turnaround of the lender, insisting that First HoldCo represented a fundamentally different proposition from his previous investments.

“The situation with my foray into and continuous investment in First Holdco Plc is completely different,” he stated, describing the lender as “a long-term generational commitment unlike my previous involvement(s).”

According to him, the bank’s 130-year history, systemic importance and position within Nigeria’s financial system make it an enduring investment capable of creating value for generations.

Otedola explained that he decided to invest in the institution after recognising its underlying franchise value despite the significant governance and asset quality challenges confronting it.

He recalled that before regulatory intervention by the Central Bank of Nigeria (CBN) in 2021, the bank was burdened by more than N2 trillion in non-performing loans, weak corporate governance and insider abuses that left it on the verge of regulatory takeover.

“First Holdco Plc was an institution on the brink,” he said, adding that the CBN eventually dissolved the board over governance breaches, unresolved insider exposures and failures in leadership succession.

Rather than viewing the crisis as a deterrent, Otedola said he saw an opportunity to rebuild one of Africa’s oldest financial institutions, supported by sweeping governance reforms, stronger risk management, leadership renewal and aggressive recapitalisation.

According to him, the bank undertook a one-off N1.7 trillion impairment charge to clean up legacy exposures, while raising fresh capital through rights issues, private placements and strategic asset divestments to strengthen its balance sheet.

The reforms, he said, have already begun to yield results, disclosing that First HoldCo’s profit before tax rose by 83.5 per cent year-on-year to N653.4 billion in the first half of 2026, while return on average equity climbed to 30.4 per cent, which he described as the highest among Nigeria’s leading banking groups.

Otedola argued that Nigerian banking stocks have historically traded below their intrinsic values due to macroeconomic uncertainty, exchange rate volatility and governance concerns rather than weak business fundamentals.

He noted that First HoldCo’s ongoing turnaround was beginning to change that perception, with the company’s share price appreciating sharply and its market capitalisation rising above N6 trillion.

According to him, the rally reflected both improved corporate performance and growing investor confidence in the institution’s long-term prospects.

Looking ahead, Otedola said the board remained committed to rewarding shareholders through stronger dividend payments while maintaining sufficient capital to support future expansion.

He explained that the proposed dividend payout ratio of about 60 per cent would be funded from sustainable earnings after satisfying regulatory capital requirements and financing growth initiatives.

“I have always believed that well-managed banks should consistently reward shareholders through robust dividends and valuations that reflect their true earning power,” he said.

He also maintained that stronger capitalisation was critical to Nigeria’s ambition of building a $1 trillion economy, arguing that the country could not rely on weakly capitalised banks to finance long-term economic growth.

He stressed that the objective of raising fresh capital was not merely to comply with regulatory requirements but to establish a stronger, more resilient financial institution capable of competing with leading banks across Africa.

Summing up his vision for the lender, Otedola said he wanted to leave behind an institution recognised for strong corporate governance, operational excellence, innovation and sustainable value creation.

“Our vision and my legacy as the chairman is to transform an institution that stood at the brink of a regulatory takeover to one setting the pace for its industry, proof that with the right leadership, philosophy and process, even the most entrenched institutional crises can be reversed,” he said.