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Femi Otedola says he has invested more than N600 billion of his personal wealth in First HoldCo and signalled plans to increase his stake beyond 51 percent.
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The billionaire said First Bank was on the brink of regulatory takeover before governance reforms, recapitalisation and a balance sheet clean-up began.
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Otedola described his investment as a long-term generational commitment, saying stronger governance and capital will drive the group’s future growth.
August 03, (THEWILL) — Femi Otedola, chairman of First HoldCo Plc, has signalled plans to increase his stake in the banking group beyond 51 percent, saying he has already committed more than ₦600 billion of his personal wealth to the institution.
Speaking in an interview published on Monday, Otedola described his investment as a long-term commitment rather than another corporate turnaround he would eventually exit.
His comments come as First HoldCo recently emerged as Nigeria’s most valuable listed banking group following a sharp rally in its share price, driven partly by sustained share acquisitions that have made Otedola the lender’s largest shareholder.
Majority stake in focus
Responding to questions about his long-term plans for the lender, Otedola suggested his current 26 percent holding is unlikely to be his final position.
“My investment threshold is always over and above 51 percent”, he said.
According to him, effective shareholder control, while protecting minority investors, is critical to executing reforms capable of delivering long-term value.
Otedola said the same strategy guided his investments in Forte Oil, where he increased his stake from 28 percent to 75 percent before exiting, and Geregu Power, where he raised his holding to 95 percent before reducing it after the company’s listing.
“To date, I have invested over ₦600 billion of my personal wealth in First HoldCo Plc… This speaks not to speculation, but to confidence in the institution’s future”, he said.
‘First Bank was at a crossroads’
Otedola said he began acquiring shares when First Bank was grappling with governance failures, insider abuses and more than ₦2 trillion in non-performing loans.
According to him, the bank’s deteriorating capital position prompted the Central Bank of Nigeria to intervene by dissolving the boards of First Bank and First HoldCo.
Rather than being discouraged, he said he saw an opportunity to rebuild one of Africa’s oldest financial institutions.
After becoming chairman in January 2024, he said the board prioritised governance reforms, recognised a ₦1.7 trillion one-off impairment to clean up legacy bad loans and launched recapitalisation efforts through rights issues, private placements and strategic divestments.
The programme, he noted, enabled the group to exceed the CBN’s ₦500 billion minimum capital requirement while positioning it towards a ₦1 trillion paid-up capital target.
Betting on long-term growth
Otedola said stronger governance, improved risk management and disciplined capital management have already begun translating into stronger financial performance.
He cited the group’s H1 2026 results, which showed profit before tax rising 83.5 percent to ₦653.4 billion, while return on average equity reached 30.4 percent.
He also dismissed speculation that he could eventually sell his investment, insisting that banking differs fundamentally from his previous investments in oil and power because of its systemic importance to the economy.
“It goes without saying that First HoldCo is a long-term generational commitment”, he said.
According to Otedola, the group’s strategy will focus on sustainable growth, stronger corporate governance, innovation and consistent dividend payments while maintaining adequate capital to support expansion.
He added that his ambition is to restore First HoldCo as Nigeria’s leading financial institution and one of Africa’s foremost banking groups.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
