Femi Otedola targets 51% stake in First HoldCo after record N6 trillion market cap

Fresh from leading First HoldCo Plc to a historic milestone as the first Nigerian bank to surpass a N6 trillion ($4.35 billion) market capitalization on the Nigerian Exchange (NGX), Chairman Femi Otedola is setting his sights on majority ownership of the financial services group. The billionaire investor said he plans to increase his stake to 51 percent, reinforcing his long-term commitment to the parent company of Nigeria’s oldest bank, First Bank of Nigeria Plc.

Speaking in an exclusive interview, Otedola said majority ownership is critical to executing the reforms and restructuring needed to strengthen First HoldCo and deliver long-term value for shareholders. He said his investment philosophy has always been to acquire controlling stakes before implementing operational and strategic changes. Otedola, who owns a 25.8 percent stake in First HoldCo valued at N1.55 trillion ($1.13 billion), cited the turnarounds of Forte Oil Plc and Geregu Power Plc as proof of that approach. 

Otedola shares vision for long-term value

According to Otedola, strong shareholder control—while protecting the interests of minority investors—gives management the backing needed to make difficult decisions that improve long-term performance. “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 said.

He recalled increasing his stake in African Petroleum Plc, later renamed Forte Oil Plc, from 28 percent to 75 percent before exiting the investment in 2019. He followed a similar path at Geregu Power Plc, raising his ownership from 51 percent to 95 percent before reducing it to 77 percent after the company’s public listing in 2022. Otedola said he intends to apply the same approach at First HoldCo as he works toward majority ownership.

Femi Otedola injects N600 billion into First HoldCo

The Nigerian businessman also disclosed that he has invested more than N600 billion ($440 million) of his personal wealth in First HoldCo, describing the commitment as a reflection of his confidence in the group’s future rather than a short-term market bet. “To date, I have invested over N600 billion ($440 million) 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 said.

Otedola said the group’s priorities include strengthening its workforce, improving operational efficiency, advancing innovation, and enhancing customer service. He added that First HoldCo has overhauled its risk management and credit control systems after recognizing more than N3 trillion ($2.2 billion) in impaired loans over the past decade. Those measures, he said, have strengthened the group’s governance and internal controls, positioning it to deliver more consistent earnings and stronger long-term returns for shareholders. 

Lower provisions boost First HoldCo earnings

His comments come as First HoldCo reported one of its strongest half-year performances in recent years, helped by higher operating income and a sharp decline in credit-loss provisions. For the six months ended June 30, 2026, pre-tax profit rose to N653.54 billion ($473.8 million), up from N356.15 billion ($258.2 million) in the same period a year earlier.

The results underline the group’s ability to grow earnings even as net interest income edged lower. While net interest income slipped to N879.13 billion ($637.3 million) from N904.83 billion ($655.9 million) a year earlier, stronger non-interest income more than made up for the decline, highlighting the group’s diversified sources of revenue beyond traditional lending.

The stronger earnings were matched by continued growth across First HoldCo’s balance sheet. Total assets increased to N30.65 trillion ($22.22 billion) as of June 30, 2026, from N27.25 trillion ($19.76 billion) at the end of December 2025. Shareholders’ equity also increased to N3.63 trillion ($2.63 billion) from N3.30 trillion ($2.39 billion), while retained earnings rose to N921.72 billion ($668.2 million), further strengthening the group’s capital position.