Nigerian billionaire Femi Otedola’s stake in First Hold Co nears $500 million

Nigerian billionaire Femi Otedola is edging closer to a defining milestone in his high-stakes bet on First HoldCo Plc, as the market value of his stake in the parent company of First Bank of Nigeria nears the $500 million mark. The rise reflects both a sharp rally in the group’s shares and a broader shift in investor sentiment toward one of Nigeria’s oldest financial institutions.

Otedola stake nears $500 million

Fresh data compiled by Shore.Africa shows that Otedola’s 18.12 percent stake has climbed by N234.4 billion ($173.7 million) since the start of the year. The value of his holdings has risen from N385.9 billion ($285.9 million) on Jan. 1 to N620.3 billion ($460 million) at the time of reporting, placing him within reach of the half-a-billion-dollar threshold. The increase adds to year-to-date gains tied to his position as the largest shareholder, a role he assumed in 2021 with a clear signal that his interest lay in long-term recovery rather than a quick exit.

His stake, totaling 8,055,314,486 shares, is split between direct and indirect holdings. Direct ownership accounts for 3.25 billion shares, representing 7.31 percent of the group, while an additional 4.80 billion shares, or 10.81 percent, are held through investment vehicles. Together, they form one of the most closely watched positions on the Nigerian Exchange, where sustained buying interest has lifted the company’s share price by more than 60 percent this year.

First HoldCo rally lifts valuation

Shares in First HoldCo have climbed from N47.9 ($0.035) at the start of January to N77 ($0.057), pushing the lender’s market capitalization to N3.42 trillion ($2.53 billion). That valuation now accounts for about 2.42 percent of the Nigerian Exchange’s total market capitalization and places the group as the 11th most valuable listed company on the bourse. The rally comes at a time when Nigeria is set for reclassification into the FTSE Russell Frontier Market Index on September 21, 2026, a move that typically draws automatic inflows from passive investment funds tracking the index.

Behind the numbers is a shift that has begun to reshape perceptions of the group. Buying interest in the stock suggests that investors are responding to early signs of stability under Otedola’s leadership. A stronger capital base, improved earnings, and tighter cost controls are helping rebuild confidence among both shareholders and depositors, offering a measure of reassurance for a bank that has long held a central place in Nigeria’s financial system.

Otedola tightens governance, lifts confidence

Founded more than a century ago, First Bank remains the flagship subsidiary and a key part of the country’s economic fabric. Yet its recent past was marked by management lapses and exposure to risky lending, factors that weighed on confidence and valuation. Otedola’s entry as the largest shareholder in 2021 was seen as a turning point, anchored in a belief that the institution could recover with disciplined oversight and a clearer strategic focus.

That approach became more visible after his appointment as chairman in January 2024. He moved quickly to introduce cost-cutting measures and strengthen governance, including ending use of private jets for executive travel at the bank’s expense. The decision underscored emphasis on accountability and financial discipline. Alongside tighter oversight and clearer reporting lines, the changes have begun to shape a more measured operating culture across the group.

For Otedola, whose business interests have spanned energy and finance, the steady climb in the value of his stake signals more than a market gain. It points to a calculated effort to restore credibility in a legacy institution, one that is now drawing renewed attention from both domestic and international investors as its shares continue to advance.