First HoldCo Plc Chairman Femi Otedola has disclosed plans to increase his ownership in the financial services group to more than 50 per cent.
The billionaire businessman also said he has no intention of selling his stake in the company anytime soon, unlike some of his previous investments.
Speaking in an interview with Nairametrics, Otedola revealed that he has already invested over N600 billion of his personal funds in First HoldCo, reflecting his strong belief in the company’s long-term growth.
He said the bank’s consistent progress stems from a comprehensive balance sheet clean-up, recapitalisation efforts, and improved corporate governance.
According to Otedola, his investment strategy has always focused on acquiring controlling interests in companies so he can implement significant reforms that create lasting value for shareholders.
The chairman, who currently owns a 28.5 per cent stake in the group, said: “I am sure that you can see from my antecedents that my investment threshold is always over and above 51 per cent.
“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.”
He pointed to his previous investments in African Petroleum Plc, later renamed Forte Oil Plc, where he increased his ownership from 28 per cent to 75 per cent before exiting in 2019. He also referenced Geregu Power Plc, where he expanded his stake from 51 per cent to 95 per cent before reducing it to 77 per cent following the company’s public listing.
Otedola said: “I am on the same trajectory with First Holdco Plc. 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.”
He dismissed speculation that he would eventually sell his investment after completing the bank’s turnaround, stressing that First HoldCo is fundamentally different from his previous investments.
“The situation with my foray into and continuous investment in First Holdco Plc is completely different,” he stated, describing the lender as “a long-term generational commitment unlike my previous involvement(s),” he said.
He explained that the bank’s 130-year legacy, strategic importance, and central role in Nigeria’s financial system make it a long-term investment capable of delivering value across generations.
Otedola said he was drawn to the institution because of its strong underlying value despite its governance and asset quality challenges at the time.
He recalled that before the Central Bank of Nigeria (CBN) intervened in 2021, the bank was weighed down by more than N2 trillion in non-performing loans, weak governance practices, and insider-related abuses that pushed it close to regulatory takeover.
“First Holdco Plc was an institution on the brink,” he said, adding that the CBN eventually dissolved the board over governance breaches, unresolved insider exposures and failures in leadership succession.
Rather than being discouraged by the crisis, Otedola said he viewed it as an opportunity to rebuild one of Africa’s oldest financial institutions through stronger governance, improved risk management, leadership changes, and aggressive recapitalisation.
He disclosed that the bank recognised a one-off impairment charge of N1.7 trillion to address legacy problem assets while strengthening its capital base through rights issues, private placements, and strategic asset sales.
According to him, those reforms are already producing positive results, with First HoldCo recording an 83.5 per cent year-on-year increase in profit before tax to N653.4 billion in the first half of 2026. He added that return on average equity rose to 30.4 per cent, which he described as the highest among Nigeria’s leading banking groups.
Otedola argued that Nigerian banking stocks have historically traded below their true value because of macroeconomic uncertainty, exchange rate volatility, and governance concerns rather than weak operational performance.
He said the ongoing transformation at First HoldCo has begun changing that perception, as reflected in the sharp appreciation of the company’s share price and a market capitalisation that has surpassed N6 trillion.
According to him, the market rally demonstrates stronger financial performance and increasing investor confidence in the bank’s long-term outlook.
Looking ahead, Otedola said the board intends to reward shareholders with improved dividend payments while preserving enough capital to finance future growth.
He explained that the proposed dividend payout ratio of about 60 per cent would come from sustainable earnings after meeting regulatory capital requirements and funding expansion plans.
“I have always believed that well-managed banks should consistently reward shareholders through robust dividends and valuations that reflect their true earning power,” he said.
He also emphasised that stronger capitalisation is essential to Nigeria’s goal of building a $1 trillion economy, noting that undercapitalised banks cannot adequately support long-term economic development.
According to him, the objective of raising additional capital goes beyond regulatory compliance and is aimed at building a stronger, more resilient financial institution capable of competing with Africa’s leading banks.
Concluding his vision for First HoldCo, Otedola said he hopes to leave behind a financial institution recognised for sound corporate governance, operational excellence, innovation, and sustainable value creation.
“Our vision and my legacy as the chairman is to transform an institution that stood at the brink of a regulatory takeover to one setting the pace for its industry, proof that with the right leadership, philosophy and process, even the most entrenched institutional crises can be reversed,” he said.
If you’d like, I can also condense this into a shorter newspaper-style report or a 400–600 word news story.
