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LAGOS – Chairman of First HoldCo Plc, Mr. Femi Otedola, has declared his intention to raise his shareholding in the financial services group beyond 50 percent, revealing that he has already invested more than N600 billion of his personal wealth in the institution as part of what he described as a long-term generational commitment.
Otedola, who currently owns about 28.5 percent of First HoldCo, said his investment strategy has always been to acquire controlling interests in companies to enable him drive deep-rooted reforms, strengthen corporate governance and unlock long-term shareholder value.
Speaking in an interview with Naijaonpoint, the billionaire businessman dismissed speculation that he could eventually exit the bank after completing its turnaround, insisting that his commitment to First HoldCo differs fundamentally from his previous investments in Forte Oil and Geregu Power.
According to him, his investment in the lender is not based on short-term gains but on confidence in the institution’s long-term prospects following extensive reforms that have repositioned the bank.
“I am sure that you can see from my antecedents that my investment threshold is always over and above 51 percent.
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,” Otedola said.
He pointed to his investment history, recalling that he increased his stake in African Petroleum Plc, later renamed Forte Oil Plc, from 28 percent to 75 percent before divesting in 2019.
He also noted that he built his shareholding in Geregu Power Plc from 51 percent to 95 percent before reducing it to 77 percent after the company’s listing on the Nigerian Exchange.
“I am on the same trajectory with First Holdco Plc. To date, I have invested over N600 billion 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 stated.
The First HoldCo chairman stressed that unlike his previous investments, the bank represents a permanent legacy project.
“The situation with my foray into and continuous investment in First Holdco Plc is completely different,” he said, describing the institution as “a long-term generational commitment unlike my previous involvement(s).”
According to Otedola, First HoldCo’s 130-year history, strategic importance to Nigeria’s financial system and enduring franchise value makes it an institution capable of delivering value for generations.
He disclosed that he was attracted to the bank despite the significant governance and asset quality challenges it faced before the intervention of the Central Bank of Nigeria (CBN) in 2021.
He recalled that the institution had accumulated more than N2 trillion in non-performing loans, suffered weak corporate governance and was plagued by insider abuses, leaving it dangerously close to regulatory intervention.
“First Holdco Plc was an institution on the brink,” he said, noting that the CBN eventually dissolved the board over governance breaches, unresolved insider-related exposures and leadership succession failures.
Rather than viewing the crisis as a reason to stay away, Otedola said he saw an opportunity to rebuild one of Africa’s oldest financial institutions through sweeping reforms centred on governance, risk management, leadership renewal and stronger capitalisation.
He explained that the bank undertook a one-time N1.7 trillion impairment charge to clean up legacy assets while raising fresh capital through rights issues, private placements and strategic asset sales to strengthen its balance sheet.
According to him, the restructuring exercise has already translated into stronger financial performance.
He disclosed that First Hold- Co posted an 83.5 percent yearon- year increase in profit before tax to N653.4 billion in the first half of 2026, while return on average equity climbed to 30.4 percent, which he described as the highest among Nigeria’s major banking groups.
Otedola argued that Nigerian banking stocks have traditionally traded below their intrinsic values due to macroeconomic headwinds, exchange rate volatility and governance concerns rather than weak operational fundamentals.
He, however, said the ongoing transformation at First HoldCo is changing investor perception, noting that the company’s share price has risen sharply, pushing its market capitalisation above N6 trillion.
According to him, the appreciation reflects renewed investor confidence in the institution’s earnings capacity and long-term growth strategy.
On shareholder returns, Otedola assured investors that the board intends to maintain an attractive dividend policy while preserving sufficient capital to finance expansion.
He said the proposed dividend payout ratio of about 60 percent would be supported by sustainable earnings after meeting regulatory capital requirements and funding future growth.
“I have always believed that well-managed banks should consistently reward shareholders through robust dividends and valuations that reflect their true earning power,” he said.
The billionaire investor also backed the ongoing banking recapitalisation programme, saying stronger financial institutions are critical to financing Nigeria’s ambition of becoming a $1 trillion economy.
He argued that the objective of raising fresh capital should go beyond regulatory compliance, stressing that Nigerian banks must build stronger balance sheets capable of supporting large-scale investments and competing effectively across Africa.
Summing up his vision, Otedola said his ultimate goal is to leave behind a financial institution recognised for sound corporate governance, operational excellence, innovation and sustainable value creation.
“Our vision and my legacy as the chairman is to transform an institution that stood at the brink of a regulatory takeover to one setting the pace for its industry, proof that with the right leadership, philosophy and process, even the most entrenched institutional crisis can be reversed,” he said.
