Nigerian billionaire Femi Otedola pursues bigger stake in First Bank’s parent company

Key Points

• Billionaire Femi Otedola is buying shares from Oba Otudeko and Olukayode Odukale, tightening control over First Bank’s parent, First Holdco Plc.
• Otedola plans to invest over N320 billion ($200.9 million) in First Bank using personal funds—Nigeria’s biggest-ever individual banking stake.
• Under Otedola’s leadership, First Holdco’s 2024 net profit more than doubled as total assets soared 56% to N26.52 trillion ($16.5 billion).

Nigerian billionaire Femi Otedola is moving to strengthen his grip on First Bank’s parent company, First Holdco Plc, as fellow shareholders Oba Otudeko and Olukayode Odukale prepare to sell their stakes. The two businessmen, who have long held significant interests in the group, are stepping back, paving the way for Otedola to solidify his position at the top of one of Nigeria’s oldest and most influential financial institutions.

Otedola tightens grip on First Holdco

Sources familiar with the matter say both Otudeko and Odukale, the latter representing Leadway Assurance, have agreed to sell their shares to Otedola at N31 ($0.02) apiece. Once the deal is finalized, it will mark the end of a power struggle that has at times threatened the bank’s internal stability and public reputation. For Otedola, who already chairs both Geregu Power and First Holdco, the acquisition is another step in a long-running effort to restore First Bank’s standing in the financial sector.

That effort has come with bold moves. At First Holdco’s 13th Annual General Meeting, Otedola revealed he plans to extend his interest in the lender to more than N320 billion ($200.9 million), all from personal funds, with no loans involved. It would be the largest individual investment ever made in Nigeria’s banking sector. “This was not a gamble,” he said. “It was a calculated, strategic move to rebuild First Bank into a modern, well-governed, and highly profitable institution.” His comments reflected a clear departure from the missteps and governance challenges that have weighed on the bank in recent years.

First Bank profit doubles under Otedola

Founded in 1894, First Bank has long been a cornerstone of Nigeria’s economy. But its reputation took a hit after years of poor governance and questionable lending practices. When Otedola began buying up shares in 2021, eventually becoming the bank’s largest individual shareholder, it was clear he wasn’t just in it for the dividends. Since stepping in as chairman in January 2024, he’s pushed for tighter controls, clearer goals, and a no-frills leadership style. One of his first actions: putting an end to executives flying private jets on the bank’s dime.

The results are starting to show. In 2024, First Holdco’s gross earnings topped $660 million, with strong growth across interest income, service fees, and returns from investments. Total income rose from N769.2 billion ($480 million) in 2023 to over N1.06 trillion ($664 million) a year later. Net profits more than doubled. And by the end of 2024, the bank’s total assets had climbed to N26.52 trillion ($16.5 billion), up more than 56 percent in just one year.

Otedola dreams bigger for First Bank

Still, Otedola’s vision extends beyond financial performance. Earlier this year, he laid the foundation stone for First Bank’s future headquarters in Eko Atlantic City, Lagos’ emerging financial hub. The planned 44-story tower, set to be one of Africa’s tallest building, will symbolize more than just a new office. For Otedola, it’s a statement of intent. At the event, attended by Vice President Kashim Shettima, Lagos Governor Babajide Sanwo-Olu, and industrialists like Aliko Dangote and the Chagoury brothers, he made it clear: First Bank isn’t just making a comeback. It’s preparing for a much bigger future.