Chairman of First HoldCo Plc, Femi Otedola, has indicated plans to increase his shareholding in the financial services group to more than 51 per cent, describing his investment in the company as a long-term commitment backed by over N600 billion of his personal wealth.
Gatekeepers News reports that Otedola disclosed this in an exclusive interview with Nairametrics published on Monday, as First HoldCo continues its remarkable market rally that recently saw it emerge as Nigeria’s most valuable listed banking group after its share price more than doubled this year.
The billionaire investor, who currently owns about 26 per cent of the company, said his acquisition strategy is aimed at securing effective shareholder control to drive lasting reforms and create value for all stakeholders.
“My investment threshold is always over and above 51 percent,” he said.
“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.”
Otedola said the approach mirrors his previous investments in African Petroleum Plc, later renamed Forte Oil Plc, where he increased his stake from 28 per cent to 75 per cent before exiting in 2019. He also noted that he raised his holding in Geregu Power Plc from 51 per cent to 95 per cent before reducing it to 77 per cent following the company’s public listing.
“I am on the same trajectory with First HoldCo Plc,” he said.
“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.”
‘First Bank was on the brink’
Otedola said he began investing in First HoldCo at a time when the institution was grappling with severe governance and financial challenges.
According to him, years of weak corporate governance, poor credit administration and insider abuses had saddled First Bank with more than N2 trillion in non-performing loans, pushing the lender close to regulatory intervention.
“Before 2021, First Bank of Nigeria… stood at a genuine crossroads,” he said.
“The bank’s loan book had deteriorated to the point where over N2 trillion in bad loans sat on its balance sheet — a burden compounded by a culture of recalcitrant and delinquent debtors who treated the institution as an outlet to exploit, obtaining credit facilities with little or no intention of repayment.”
He added that the bank’s deteriorating capital position prompted concerns from the Central Bank of Nigeria (CBN).
“The Central Bank of Nigeria found the bank’s capital position so compromised, and its governance failures so severe, that the institution stood on the verge of regulatory takeover to protect its over 30 million customers and minority shareholders.”
Otedola recalled that the CBN subsequently dissolved the boards of First Bank and First HoldCo over governance failures, unresolved insider exposures and breaches of regulatory directives.
Rather than be discouraged by the situation, he said he saw an opportunity to restore one of Africa’s oldest financial institutions.
“Recognising the institution’s systemic importance and its potential for renewal, I began a deliberate, phased acquisition of shares in the institution,” he said.
“This was not a hostile or opportunistic move, but a calculated commitment to rescue, rebuild and reposition First HoldCo Plc.”
Governance reforms and recapitalisation
Otedola said restoring confidence through stronger corporate governance and balance sheet restructuring became the board’s immediate priority after he assumed office as chairman in January 2024.
He disclosed that the group recognised a one-off impairment of N1.7 trillion to eliminate legacy non-performing loans and embarked on a recapitalisation programme involving rights issues, private placements and strategic divestments.
According to him, the exercise enabled the institution to exceed the CBN’s N500 billion minimum capital requirement while positioning it to achieve a paid-up capital target of N1 trillion.
He stressed that stronger banks are essential to supporting Nigeria’s economic ambitions.
“I reiterate my belief that a modern Nigerian economy aspiring toward a $1 trillion GDP cannot be anchored on weakly capitalised banks,” he said.
Otedola also revealed that First HoldCo had impaired more than N3 trillion in bad loans over the past decade while strengthening its credit governance framework to prevent a repeat of past challenges.
Financial performance improves
The chairman said the reforms are already yielding results, pointing to the group’s half-year 2026 financial performance.
According to him, profit before tax rose by 83.5 per cent year-on-year to N653.4 billion, while return on average equity climbed to 30.4 per cent, which he described as the highest among Nigeria’s leading banking groups.
Commenting on the strong appreciation in First HoldCo’s share price, Otedola attributed the rally to both improved corporate performance and sustained investor confidence.
“It is a mix-and-match of both,” he said when asked whether the rally reflected the so-called ‘Otedola effect’.
“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.”
‘A generational commitment’
Otedola dismissed speculation that he would eventually dispose of his investment after completing the company’s turnaround, insisting that his commitment to First HoldCo differs fundamentally from his previous investments.
“The decision to sell, however, is not purely based on exiting like a private equity model but driven by market conditions and other personal objectives,” he said.
“However, the situation with my foray into and continuous investment in First Holdco Plc is completely different.”
“It goes without saying that First Holdco is a long-term generational commitment, unlike my previous involvement(s).”
He said the group would continue to focus on strengthening corporate governance, improving risk management, driving innovation and maintaining operational discipline while rewarding shareholders through consistent dividend payments without compromising future growth.
Otedola also argued that Nigerian banks remain undervalued compared to their African peers despite delivering strong returns on equity, expressing confidence that First HoldCo’s transformation would improve investor perception of the banking sector.
“Our vision and my legacy as chairman is to transform an institution that stood at the brink of a regulatory takeover to one setting the pace for its industry,” he said.
He added that his long-term ambition is to restore First HoldCo to its position as Nigeria’s leading financial institution and one of Africa’s foremost banking groups.
