Billionaire businessman Femi Otedola has invested an additional N18.1 billion in First HoldCo Plc, the parent company of First Bank of Nigeria Limited, increasing his total stake to 26.1% from the previous 22.4%. The investment was disclosed in a corporate filing on the Nigerian Exchange (NGX) on Friday.
Details of the Investment
According to the filing, Otedola acquired an additional 1.86 billion shares of First HoldCo at an average price of N9.73 per share, bringing his total shareholding to approximately 10.2 billion shares. The transaction was executed through his investment vehicle, Calvados Global Services Limited.
The fresh investment underscores Otedola's confidence in the banking group's growth prospects and strategic direction. In a statement, Otedola said, "I am committed to supporting the long-term growth and stability of First HoldCo, and this additional investment reflects my belief in the company's potential to deliver value to shareholders."
Impact on Shareholding Structure
With the latest acquisition, Otedola now holds 26.1% of First HoldCo, making him the single largest shareholder in the financial services group. The move comes amid a broader restructuring of the company's shareholding, with other key investors also adjusting their positions.
Market analysts view Otedola's increased stake as a positive signal for the bank, potentially boosting investor confidence and supporting share price stability. The NGX data shows that First HoldCo's share price has appreciated by 15% since the beginning of the year, partly driven by the ongoing share accumulation by high-net-worth investors.
Strategic Implications
The investment is expected to strengthen Otedola's influence in the boardroom, where he has been an active director. Industry observers suggest that his increased stake could lead to more aggressive strategic initiatives, including potential mergers and acquisitions or expansion into new markets.
First HoldCo, which also owns First Pension Custodian and other financial services subsidiaries, has been focusing on digital transformation and customer-centric solutions. The fresh capital injection will support these initiatives, according to the company's management.
In response to the development, shares of First HoldCo rose by 2.3% on the NGX on Friday, closing at N9.95 per share. The broader market index gained 0.8% during the same session.
Background
Otedola, who is also the chairman of FBN Holdings, has been progressively increasing his stake in the company since 2021. His initial investment of N15 billion in 2021 was followed by several rounds of purchases, reflecting his long-term commitment to the banking group.
The latest investment comes at a time when the Nigerian banking sector is experiencing consolidation, with several lenders seeking to raise capital to meet new regulatory requirements. First HoldCo's capital adequacy ratio remains above the regulatory minimum, but the additional funds will provide a buffer for future growth.
As of the end of the second quarter of 2026, First HoldCo reported a profit after tax of N204.5 billion, a 12% increase year-on-year, driven by higher interest income and improved operational efficiency.
