- Femi Otedola Eyes More Than 51.00% of First HoldCo as Stake Rises to 25.87%
Nigerian billionaire Femi Otedola has signalled his intention to eventually secure majority control of First HoldCo, the parent company of First Bank of Nigeria, after committing more than ₦600 billion, equivalent to about US$432 million, of his personal wealth to the banking group.
The declaration marks Otedola’s clearest indication yet that his rapidly expanding investment in First HoldCo is not merely a portfolio position but part of a longer-term strategy to take controlling ownership of one of Africa’s oldest and most influential financial institutions.
His latest purchases have lifted his beneficial ownership to 25.87%, equivalent to 11.76 billion shares, making him the company’s largest shareholder.
Otedola told Nairametrics that his investment philosophy has historically centred on owning more than half of businesses in which he commits significant capital.
“If you look at my antecedents, my investment threshold is always over and above 51%,” he said, adding that he is following the same strategy with First HoldCo.
The comments immediately sharpen the focus on the ownership structure of First HoldCo and raise the prospect of one of the largest corporate control transactions in Nigeria’s banking sector in recent years.
Otedola has been aggressively accumulating shares.
On July 22, he acquired more than 706 million First HoldCo shares before returning to the market days later to purchase another 1.779 billion shares. The two transactions, estimated at nearly ₦300 billion, or about US$216 million, significantly strengthened his grip on the listed lender.
His total investment now exceeds ₦600 billion.
The scale of the commitment is particularly notable because Otedola has framed First HoldCo as a long-term, generational investment rather than an asset he intends to restructure and subsequently sell.
That differentiates the banking investment from some of his previous corporate plays.
At Forte Oil, Otedola progressively built a controlling position, implemented restructuring and eventually exited the business. At Geregu Power, he increased his ownership to about 95.00% before the electricity generator was listed on the Nigerian Exchange.
Otedola argues that controlling ownership gives investors greater ability to execute difficult reforms, pursue longer-term strategic decisions and create value without the constraints that can accompany highly fragmented ownership structures.
First HoldCo represents a much larger and more systemically important proposition.
First Bank was founded in 1894 and remains one of Africa’s oldest banking institutions, with operations extending across multiple African markets and international activities supporting trade, investment and correspondent banking.
The institution has also been emerging from a difficult period marked by governance disputes, ownership battles and regulatory intervention.
Investor sentiment has improved materially as governance reforms and stronger earnings have restored confidence.
In 2026, First HoldCo became the first Nigerian banking group to surpass a market capitalisation of ₦6 trillion, equivalent to about US$4.30 billion, overtaking rivals to become the country’s most valuable listed banking group.
That rising valuation creates both an opportunity and a challenge for Otedola.
A move from 25.87% ownership to above 51.00% would require the acquisition of more than another quarter of the company’s issued shares, assuming no material change in the share count.
At current valuations, that would require substantially more capital and could prove significantly more expensive if investors continue to price in stronger earnings, governance improvements and the possibility of a takeover premium.
Any attempt to cross into outright majority control would also attract intense regulatory scrutiny.
First HoldCo is not an ordinary industrial company. Its banking businesses operate within a tightly regulated financial system, meaning any material change in ownership or control would likely require approval from relevant financial regulators.
The Central Bank of Nigeria’s ongoing recapitalisation programme adds another layer of significance.
Banks across the country are strengthening capital positions and raising new funds to meet higher minimum requirements, creating both competitive pressure and opportunities for investors willing to commit large amounts of long-term equity capital.
First HoldCo has been one of the strongest beneficiaries of renewed investor enthusiasm for banking stocks.
The group reported stronger first-half earnings, supported by rising interest income and improved operating performance, helping sustain the recovery in market confidence.
Otedola’s continued accumulation has itself become part of that confidence story.
His increasing ownership sends a strong signal that one of Nigeria’s most prominent investors believes further value remains in a bank already commanding the sector’s largest market capitalisation.
Yet the same concentration also creates a corporate-governance question.
A controlling shareholder can provide strategic direction and long-term capital, but majority ownership in a systemically important financial institution requires robust governance structures to protect minority shareholders, depositors and other stakeholders.
That makes the balance between ownership influence and institutional independence particularly important.
For Otedola, the transaction also carries substantial personal concentration risk.
Investing more than US$430 million in a single banking group is already far beyond a passive portfolio allocation. Increasing that stake to majority control would deepen his exposure to financial-sector regulation, interest-rate cycles, credit quality and Nigeria’s wider macroeconomic environment.
His comments nevertheless leave little doubt about his ambition.
What remains uncertain is the timetable.
There is no indication yet that Otedola has launched a formal offer for majority control, and reaching the 51.00% threshold would require further large-scale share purchases, willing sellers and regulatory approval.
But with a 25.87% stake already secured and more than ₦600 billion committed, the question surrounding First HoldCo has changed.
It is no longer whether Otedola wants a meaningful strategic position in the group.
The question is how far he is prepared to go financially and regulatorily to convert that position into outright control of Nigeria’s oldest banking institution.
