By ABUBAKAR YUNUS
Femi Otedola, chairman of First HoldCo Plc, has hinted at increasing his 26 percent holding in First HoldCo to 51 percent as the lender’s transformation gathers pace.
Otedola spoke in an exclusive interview with Nairametrics published on Monday.
The interview comes as First HoldCo recently became Nigeria’s most valuable listed banking group after its shares more than doubled this year.
The milestone followed a series of share acquisitions, as Otedola sought to tighten his grip as the company’s largest shareholder.
In the interview, the mogul said he has invested more than N600 billion of his personal wealth in First HoldCo, describing the move as a “long-term generational commitment” rather than another turnaround investment he would eventually exit.
Responding to speculation that he intends to consolidate his position in the group, Otedola hinted that his investment journey is far from over.
“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.”
The businessman said the same strategy had guided his investments in African Petroleum Plc, later renamed Forte Oil Plc, where he gradually increased his shareholding from 28 percent to 75 percent before exiting the company in 2019.
He said he also increased his stake in Geregu Power Plc from 51 percent to 95 percent before reducing it to 77 percent after the company’s public listing.
“I am on the same trajectory with First HoldCo Plc,” Otedola 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.”
Otedola said his decision to invest in First HoldCo came at a time when the institution was facing one of the most challenging periods in its history.
According to the billionaire, years of weak corporate governance, poor credit administration, and insider abuses had left First Bank burdened with more than N2 trillion in bad loans — a situation he said threatened the institution’s survival.
He said the lender’s capital position had deteriorated to the point where the Central Bank of Nigeria (CBN) considered regulatory intervention necessary to protect depositors and minority shareholders.
“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.
“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 eventually dissolved the boards of both First Bank and First HoldCo over governance failures, unresolved insider exposures and breaches of regulatory directives.
Rather than view the crisis as a deterrent, he said he saw an opportunity to rebuild 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.”
Otedola said one of the board’s first priorities after he became chairman in January 2024 was to restore confidence in the institution through sweeping governance reforms and an aggressive clean-up of its balance sheet.
The billionaire said the group recognised a one-off impairment of N1.7 trillion to eliminate legacy problem loans and embarked on a recapitalisation programme involving rights issues, private placements, and strategic divestments.
This, he said, enabled the institution to exceed the CBN’s N500 billion minimum capital requirement while positioning it towards an ambitious N1 trillion paid-up capital target.
The chairman said stronger capital buffers are essential if Nigerian banks are to support the country’s ambition of becoming a $1 trillion economy.
“I reiterate my belief that a modern Nigerian economy aspiring toward a $1 trillion GDP cannot be anchored on weakly capitalised banks,” he said.
He disclosed the institution had impaired more than N3 trillion over the past decade and tightened its credit governance framework to prevent a recurrence of the practices that created the crisis.
Otedola said the reforms have already begun to translate into improved financial performance.
He cited the group’s first-half 2026 results, which showed that profit before tax rose 83.5 percent year-on-year to N653.4 billion, while return on average equity climbed to 30.4 percent, describing it as the highest among Nigeria’s leading banking groups.
He also linked the sharp appreciation in First HoldCo’s share price to the company’s improved fundamentals 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.”
Otedola also dismissed suggestions that he could eventually monetise his investment in First HoldCo after completing the turnaround, as he did with Forte Oil.
He said banking differs fundamentally from businesses in the oil, gas, and power sectors because it is built on public trust and plays a systemic role in the economy.
“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,” the investor 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).
“The free-market platform of the financial services industry and our commitment to internal reforms provide the basis of my huge investment and hence a long-term commitment.”
He said the group’s future would be built on stronger corporate governance, improved risk management, innovation, and operational discipline.
Otedola noted that the board intends to reward shareholders through consistent dividend payments while maintaining sufficient capital to fund future growth.
He also said Nigerian banks remain undervalued relative to their African peers, despite delivering strong returns on equity, expressing confidence that First HoldCo’s transformation would help change investors’ perception of the 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,” Otedola said.
The chairman also said his ambition is to restore First HoldCo to its position as Nigeria’s leading financial institution and one of Africa’s foremost banking groups.
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