Femi Otedola has significantly increased his stake in First Bank of Nigeria Holdings Plc (First HoldCo) to approximately 36.7%, following the acquisition of about 10.43 billion shares in an off-market transaction valued at over ₦323 billion.
The deal, executed on July 16, marks the largest block trade ever recorded on the Nigerian Exchange (NGX) and solidifies Otedola’s position as the single largest shareholder in one of the country’s oldest and most influential financial institutions.
A Power Shift Years in the Making
Otedola’s latest move follows years of gradual stake buildup in First HoldCo. Since 2021, the billionaire investor has strategically positioned himself in the company. However, this latest acquisition signals a significant power shift, particularly as it involved the complete buyout of Oba Otudeko, a former chairman and long-time major shareholder.
Otudeko previously held a confirmed 8.65% stake, along with additional shares tied to Honeywell Group some of which were under litigation due to ongoing regulatory concerns involving related-party loans.
Otudeko, Hassan-Odukale Exit in Coordinated Deal
Alongside Otudeko’s exit, other major shareholders also divested, most notably Tunde Hassan-Odukale and entities affiliated with him, including:
- Leadway Holdings
- Leadway Pensure PFA
- Haskal Holdings
- NNPC/Leadway Pension Funds
These groups collectively sold approximately 2.65 billion shares, representing around 5% of the total stake in First HoldCo.
Otedola reportedly acquired these shares through 17 structured off-market deals, facilitated by top brokerage firms including CardinalStone, Meristem Securities, United Capital, Stanbic IBTC Stockbrokers, Renaissance Capital, and First Securities Ltd.
Regulatory Pressure Triggers Boardroom Exit
The exit of Otudeko is widely believed to be part of a broader regulatory clean-up by the Central Bank of Nigeria (CBN). The CBN had previously flagged a controversial ₦456 billion loan to Honeywell Flour Mills, linked to Otudeko, as a violation of insider lending rules.
Sources close to the matter suggest that Otudeko’s exit could be part of a regulatory settlement, effectively paving the way for governance reforms within the bank and preventing further criminal proceedings.
Market Reaction and Capitalization Goals
Following the deal, First HoldCo shares rallied nearly 10%, closing at ₦32.20 per share and pushing the company’s market capitalization to over ₦1.3 trillion.
However, despite the ownership shake-up, FirstBank still faces serious challenges, including:
- A ₦154 billion shortfall to meet the CBN’s ₦500 billion recapitalization target
- Mounting non-performing loans nearing ₦1 trillion
- Tight regulatory timelines to resolve internal debt issues
With Otedola now firmly in control, stakeholders are hopeful the bank will accelerate recapitalization plans and pursue long-term profitability under unified leadership.
Expert Opinion: “A New Era for FirstBank”
Market analysts describe Otedola’s strategic consolidation as one of the boldest boardroom moves in recent memory. By resolving the long-standing tussle between major shareholders and removing the shadow of regulatory interference, Otedola is positioning FirstBank for a more stable, growth-driven future.
“His vision appears focused on restoring FirstBank’s legacy through better governance, fresh capital, and aggressive expansion,” one analyst noted.
Quick Recap: Key Details
| Transaction Date | July 16, 2025 |
|---|---|
| Shares Acquired | 10.43 billion |
| Acquisition Price | ₦31 per share |
| Total Deal Value | ₦323 billion |
| Otedola’s New Stake | ~36.7% |
| Major Sellers | Otudeko, Hassan-Odukale, others |
| Brokerage Firms | CardinalStone, Meristem, First Securities, United Capital, Renaissance Capital, Stanbic IBTC |
Femi Otedola’s acquisition of a controlling stake in FirstBank’s parent company marks a turning point for the 130-year-old institution. With long-time rivals and conflicted shareholders now out of the picture, all eyes are on Otedola to steer the bank into a new era one that promises growth, stability, and a refreshed corporate identity.
As the dust settles, this move could go down as one of the most transformative business transactions in Nigerian financial history.
