First HoldCo Chairman Femi Otedola says he plans to increase his stake in the financial services group beyond 50 per cent, describing his over N600 billion investment as a long-term generational commitment
Femi Otedola Targets Majority Control of First HoldCo With N600bn Investment
Billionaire businessman and Chairman of First HoldCo Plc, Femi Otedola, has disclosed plans to increase his shareholding in the financial services group beyond 50 per cent, declaring that his investment is a long-term commitment and not another turnaround project he intends to exit.
Speaking in an interview with Nairametrics, Otedola revealed that he has already invested more than N600 billion of his personal wealth in First HoldCo, expressing confidence that the institution is on a sustainable growth path following extensive reforms to its governance structure, balance sheet and capital base.
The billionaire, who currently owns a 28.5 per cent stake in the company, said his investment philosophy has always been centred on acquiring controlling interests that allow him to implement sweeping reforms capable of creating lasting value for shareholders.
“I am sure that you can see from my antecedents that 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 interest is a key ingredient to executing reforms and restructuring to deliver value to all stakeholders.”
Drawing parallels with his previous investments, Otedola recalled increasing his stake in African Petroleum Plc, later renamed Forte Oil Plc, from 28 per cent to 75 per cent before divesting in 2019. He also pointed to Geregu Power Plc, where he expanded his holding from 51 per cent to 95 per cent before reducing it to 77 per cent after the company’s listing on the Nigerian Exchange.
According to him, First HoldCo is following the same trajectory, but with a significant difference.
“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.”
Otedola dismissed speculation that he could eventually dispose of his stake after completing the lender’s turnaround, insisting that First HoldCo represents a fundamentally different investment from his previous ventures.
“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).”
He said the institution’s 130-year history, systemic importance and strategic position within Nigeria’s financial system make it a unique investment capable of delivering value for generations.
Explaining why he invested in the bank, Otedola said he recognised its strong underlying franchise despite the severe governance and asset quality challenges it faced before the Central Bank of Nigeria’s intervention in 2021.
He recalled that the institution was weighed down by more than N2 trillion in non-performing loans, weak corporate governance and insider abuses, leaving it on the verge of regulatory takeover.
“First Holdco Plc was an institution on the brink,” he said, noting that the Central Bank of Nigeria 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 through governance reforms, stronger risk management, leadership renewal and aggressive recapitalisation.
According to him, the group absorbed a one-off N1.7 trillion impairment charge to clean up legacy assets while raising fresh capital through rights issues, private placements and strategic asset disposals to strengthen its balance sheet.
He said the reforms are already delivering measurable results, revealing that First HoldCo’s profit before tax surged by 83.5 per cent year-on-year to N653.4 billion in the first half of 2026. Return on average equity also 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 value because of macroeconomic uncertainty, exchange rate volatility and governance concerns rather than weak business fundamentals.
He added that the market is beginning to recognise First HoldCo’s transformation, with the company’s share price recording significant gains and its market capitalisation rising above N6 trillion, reflecting stronger investor confidence and improved financial performance.
Looking ahead, the businessman assured shareholders that the board remains committed to delivering stronger dividend returns while maintaining adequate capital to support future expansion.
He said the proposed dividend payout ratio of about 60 per cent would be funded from sustainable earnings after meeting regulatory capital requirements and financing the group’s growth strategy.
“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.
Otedola also stressed that stronger bank capitalisation is critical to Nigeria’s ambition of building a $1 trillion economy, arguing that adequately capitalised financial institutions are essential to financing long-term economic growth.
Summing up his vision, the First HoldCo chairman said his goal is to build an institution recognised for strong corporate governance, operational excellence, innovation and sustainable value creation, leaving behind a financial services group capable of competing with the best banks across Africa for generations.
