Femi Otedola Buys N29.6bn in First HoldCo Shares, Raises Stake to 20.4%

Billionaire businessman and First HoldCo chairman, Femi Otedola, has increased his stake in the financial services group to 20.4 percent after acquiring 672.9 million new shares.

The transaction, valued at about ₦29.6 billion, was carried out through the second tranche of First HoldCo’s private placement programme. The shares were issued at ₦44 per unit under a ₦45 billion tranche, which forms part of the group’s broader ₦350 billion capital raising plan.

The latest purchase further strengthens Otedola’s influence in one of Nigeria’s oldest and most important banking groups. It also comes at a time when Nigerian banks are under pressure to raise fresh capital and meet new regulatory requirements set by the Central Bank of Nigeria.

What You Should Know

First HoldCo is the parent company of First Bank of Nigeria Limited, one of the country’s major commercial banks. The group is raising capital to support First Bank’s balance sheet, restore capital strength, and position the bank for long-term growth.

According to the company, funds raised from the private placement will be injected into First Bank as part of its capital restoration plan. This is expected to help the lender remain competitive in the Nigerian banking sector, especially as the recapitalisation race continues across the industry.

The private placement price of ₦44 per share was below the company’s market closing price of ₦61 per share on Thursday. This means the transaction was completed at a discount to the market price reported at the time.

Why Otedola’s New Stake Matters

Otedola’s increased holding is important because it takes his ownership above the 20 percent mark. In corporate governance, such a level of ownership often gives a major shareholder strong influence over strategy, boardroom direction, and future capital decisions.

For First HoldCo, the development shows that its chairman is not only leading the board but also committing more personal capital to the group’s future. This may be read by the market as a vote of confidence in the bank’s recovery plans and long-term earnings potential.

However, it also raises a broader question about control and ownership concentration in one of Nigeria’s most systemically important financial institutions. As Otedola’s stake rises, investors and analysts will likely watch how his influence shapes the bank’s next phase.

First HoldCo’s Capital Raising Plan

First HoldCo is currently pursuing a ₦350 billion private placement programme. The latest ₦45 billion tranche is part of that plan, but the group still has more capital to raise.

The company has said it remains committed to raising the outstanding ₦221 billion under the approved programme. Shareholders had earlier given approval for the group to scale its paid-up capital to ₦1 trillion.

This capital drive is tied to the Central Bank of Nigeria’s recapitalisation directive, which requires banks with international authorisation to meet a ₦500 billion minimum capital base. First HoldCo said it had already injected about ₦270 billion into First Bank to support compliance with the requirement.

Otedola’s Growing Banking Bet

Otedola has been steadily increasing his stake in First HoldCo since emerging as the group’s top shareholder in 2021. His latest acquisition follows a series of major share purchases in the company.

In May 2026, he acquired 549.5 million shares at ₦79 per share in a deal valued at about ₦43.4 billion. Before that, he bought 370 million shares in December 2025 at ₦40.1 per share, worth about ₦14.8 billion.

He also acquired 64.9 million shares in September 2025, with part of the purchase made directly in his name and another portion through Calvados Global Services Limited.

These transactions show a clear pattern. Otedola is not treating First HoldCo as a passive investment. He is building a deeper position in the group and placing himself at the centre of its recapitalisation and restructuring story.

Bigger Picture for Nigeria’s Banking Sector

The move comes as Nigerian banks continue to raise fresh funds to meet the CBN’s new capital requirements. Lenders are turning to rights issues, private placements, public offers, and other capital market instruments to strengthen their financial base.

For First HoldCo, the capital raise is more than a regulatory exercise. It is also part of a wider push to rebuild confidence, expand lending capacity, and protect its place in Nigeria’s highly competitive banking industry.

Otedola’s new ₦29.6 billion share acquisition sends a strong message to the market. It shows that the billionaire investor is willing to deepen his exposure to banking at a time when the sector is entering a new era of consolidation, capital discipline, and tighter regulatory oversight.