Chairman of First HoldCo Plc, Femi Otedola, has hinted that he plans to increase his stake in the financial institution to more than 51 percent, describing his investment as a long-term commitment aimed at rebuilding one of Nigeria’s oldest banks.
Speaking in an exclusive interview with Nairametrics, Otedola disclosed that he has already invested over ₦600 billion of his personal funds in First HoldCo, insisting that his goal is not short-term profit but the long-term growth of the institution.
“My investment threshold is always over and above 51 percent,” Otedola said.
He explained that having a controlling stake allows investors to implement reforms while protecting the interests of minority shareholders.
According to him, the same investment strategy guided his previous investments in Forte Oil and Geregu Power, where he gradually increased his ownership before restructuring the companies.
“I am on the same trajectory with First HoldCo Plc,” he stated.
‘First Bank Was on the Brink’
Otedola revealed that he decided to invest in First HoldCo at a time when First Bank was facing serious financial and governance challenges.
According to him, the bank was burdened by over ₦2 trillion in non-performing loans, weak corporate governance and insider abuses, leaving it vulnerable to regulatory intervention.
“Before 2021, First Bank stood at a genuine crossroads,” he said.
The billionaire noted that the Central Bank of Nigeria (CBN) eventually dissolved the boards of First Bank and First HoldCo over governance concerns before the institution began its turnaround.
He said his decision to acquire shares was part of a deliberate plan to rescue and reposition the bank.
Reforms Yielding Results
Since becoming Chairman in January 2024, Otedola said the board has introduced major governance reforms, cleaned up the bank’s balance sheet and strengthened its capital base.
According to him, First HoldCo recognised a ₦1.7 trillion impairment to address legacy bad loans and later exceeded the CBN’s ₦500 billion minimum capital requirement, while working toward a ₦1 trillion paid-up capital target.
He added that the reforms are already producing positive results, pointing to the group’s strong financial performance in the first half of 2026.
Otedola said profit before tax rose by 83.5 percent to ₦653.4 billion, while return on average equity increased to 30.4 percent, which he described as one of the strongest performances among Nigeria’s leading banks.
‘This Is a Generational Commitment’
Dismissing suggestions that he could eventually sell his stake as he did with previous investments, Otedola said his involvement in First HoldCo is fundamentally different.
“First HoldCo is a long-term generational commitment,” he said.
He added that his vision is to restore First HoldCo to its position as one of Nigeria’s leading financial institutions while rewarding shareholders through stronger corporate governance, improved profitability and consistent dividend payments.
Source: Nairametrics.
