First HoldCo Plc has announced that its Group Chairman, Mr. Femi Otedola, has increased his shareholding in the company through the direct purchase of 39,313,379 units valued at ₦1.21 billion. The transaction, executed on September 23, 2025, was priced at ₦31 per share on the Nigerian Exchange (NGX).
On the same day, Calvados Global Services Limited, a company related to Otedola, also acquired 25,565,289 ordinary shares worth ₦792.5 million at the same price, further strengthening his indirect stake in the financial holding company.
These moves highlight Otedola’s continued strategy to consolidate his position in First HoldCo following the major shareholder shake-up earlier this year where large blocks of shares were sold by former core investors Oba Otudeko and Hassan Odukale.
The Recapitalization Question
Despite Otedola’s growing influence, the critical issue for First HoldCo and the Nigerian banking sector at large remains the Central Bank of Nigeria’s (CBN) recapitalization directive.
- In March 2024, the CBN ordered commercial banks to recapitalize to new minimum levels within two years (2024–2026).
- For international banks, which includes First Bank, the main subsidiary of First HoldCo, the required minimum capital base was set at ₦500 billion.
- The recapitalization is to be achieved through a combination of fresh equity injections, retained earnings, mergers, or strategic investors.
As of the latest filings, First HoldCo’s paid-up share capital and reserves remain well below the ₦500 billion requirement. While Otedola’s recent share purchases and earlier block acquisitions signal confidence and provide additional stability, they do not directly count as recapitalization unless fresh capital is injected into the company through new equity issuance.
Share transfers such as those between Otedola and previous shareholders change ownership structure but do not add fresh funds to the company’s balance sheet. The recapitalization directive requires new funds to boost capital adequacy and absorb risks.
Outlook
Market analysts note that Otedola’s strong positioning could make it easier for First HoldCo to raise fresh capital, as a unified ownership base reduces uncertainty and makes it easier to attract co-investors or push through rights issues.
However, as at today, despite Otedola’s ₦1.21 billion direct purchase and ₦792.5 million indirect addition, First HoldCo has not yet met the ₦500 billion recapitalization requirement. The company will need to announce a clear capital-raising strategy, likely via a rights issue or strategic equity injection, if it intends to comply with CBN’s deadline.
