Otedola Eyes Majority Control of First HoldCo

He disclosed that First HoldCo has impaired more than ₦3 trillion in bad loans over the past decade while strengthening its credit risk framework to prevent a recurrence of past governance failures.

Femi Otedola, chairman of First HoldCo Plc, has signalled plans to raise his stake in the financial services group to at least 51 per cent, underscoring what he described as a long-term commitment to rebuilding one of Nigeria's oldest banking institutions.

In an exclusive interview with Nairametrics, Otedola said he has invested more than ₦600 billion of his personal wealth in First HoldCo, stressing that the investment is a "generational commitment" rather than a turnaround play he intends to exit.

"My investment threshold is always over and above 51 per cent," he said, adding that effective shareholder control, while protecting minority investors, is essential for implementing reforms and unlocking long-term value.

Drawing parallels with his previous investments, Otedola said he increased his stake in Forte Oil from 28 per cent to 75 per cent before exiting in 2019, and raised his holding in Geregu Power from 51 per cent to 95 per cent before reducing it after the company's public listing.

"I am on the same trajectory with First HoldCo Plc," he said.

The billionaire investor said he acquired his stake when the bank was grappling with one of the most difficult periods in its history, citing governance failures, weak credit administration and insider abuses that left the institution burdened with more than ₦2 trillion in non-performing loans.

According to him, the bank's deteriorating capital position had pushed it to the brink of regulatory intervention by the Central Bank of Nigeria (CBN).

Rather than walk away, Otedola said he saw an opportunity to restore the lender's fortunes through a phased acquisition strategy aimed at strengthening governance and rebuilding investor confidence.

Since assuming office as chairman in January 2024, he said the board has implemented sweeping governance reforms, recognised a one-off impairment of ₦1.7 trillion to clean up legacy bad loans and embarked on a recapitalisation programme through rights issues, private placements and strategic divestments.

The measures, he noted, enabled First HoldCo to surpass the CBN's ₦500 billion minimum capital requirement while positioning the group toward a ₦1 trillion paid-up capital target.

Otedola argued that stronger capitalised banks are critical to supporting Nigeria's ambition of becoming a $1 trillion economy.

He disclosed that First HoldCo has impaired more than ₦3 trillion in bad loans over the past decade while strengthening its credit risk framework to prevent a recurrence of past governance failures.

The reforms, he said, are already delivering results. The group's first-half 2026 financial results showed profit before tax rising 83.5 per cent year-on-year to ₦653.4 billion, while return on average equity climbed to 30.4 per cent, one of the strongest performances among Nigeria's leading lenders.

Otedola attributed the sharp appreciation in First HoldCo's share price this year to improved financial performance and sustained investor confidence, saying continued share purchases by major shareholders reflect conviction in the company's long-term prospects.

He also dismissed speculation that he could eventually divest from the bank, insisting that his investment differs fundamentally from his previous ventures in the oil and power sectors.

According to him, banking is a trust-based business with strategic importance to the economy, making First HoldCo a long-term investment rather than a short-term turnaround opportunity.

Looking ahead, Otedola said the board remains focused on strengthening corporate governance, enhancing risk management, driving innovation and delivering sustainable shareholder returns through consistent dividend payments while preserving capital for future growth.

He added that Nigerian banks remain undervalued compared with many of their African peers and expressed confidence that First HoldCo's transformation would reinforce investor confidence in the sector.

"Our vision is to transform an institution that stood at the brink of regulatory takeover into one that sets the pace for Nigeria's banking industry," he said.