Femi Otedola, wey be West Africa fourth richest billionaire, don make im intention clear say he wan take controlling stake for First HoldCo, di parent company of First Bank. For interview with Nairametrics wey dem publish on Monday, Otedola talk say im investment philosophy na to always acquire controlling stake for businesses wey he believe fit transform.
According to am, if you look at im antecedents, im investment threshold always dey above 51%. He add say he dey follow di same strategy for First HoldCo. Dis one na di clearest sign so far say he want play long-term controlling role for one of Africa oldest financial institutions.
Im comment don come less dan one week after he dramatically increase im stake for di lender through series of share purchases. On July 22, Otedola acquire more than 706 million shares for First HoldCo. Di purchases, wey estimated to dey worth nearly ₦300 billion (about $216 million), strengthen im position as di company largest shareholder.
With im total investment now exceeding ₦600 billion ($432 million), Otedola describe im commitment as far more than conventional portfolio investment. He talk say dat figure no dey speak to speculation but to unflinching confidence for di institution future and im unwavering commitment to im success.
For investors, Otedola comments fit pattern wey don define much of im business career. Di billionaire first deploy di strategy at Forte Oil, where he gradually increase im ownership before restructuring di company and eventually exit di investment. He adopt similar approach at Geregu Power, increasing im stake to about 95% before listing di company on di Nigerian Exchange, where e don since become one of di country largest publicly traded power companies.
Otedola argue say controlling ownership allow management to implement difficult reforms, make long-term decisions, and create sustainable shareholder value without being constrained by fragmented ownership structures. Unlike those previous investments, however, he describe First HoldCo as long-term, generational investment rather than business wey he intend to eventually exit.
First Bank na one of Africa oldest financial institutions, wey dem found for 1894. Through First HoldCo, di group dey operate across several African markets while maintaining international operations wey support trade, investment, and correspondent banking. Di institution don undergo remarkable transformation over di past few years, rebuilding investor confidence after years of governance disputes, ownership battles, and regulatory intervention.
Otedola ambition also come at defining moment for Nigeria banking industry. Di Central Bank of Nigeria ongoing recapitalisation programme don push lenders to strengthen dia balance sheets and attract fresh capital. Higher interest rates and improved profitability don fuel renewed investor appetite for banking stocks. First HoldCo don emerge as one of di biggest beneficiaries of dat shift.
Di group report sharp increase for first-half earnings dis year, driven by stronger interest income, expanding profitability, and improved operational efficiency. Dis one don help restore confidence for one of di country most historically important financial institutions.
Although Otedola don openly express im preference for owning more than 51% of companies he invest for, achieving dat threshold at First HoldCo go require significantly more acquisitions. Any move towards majority ownership go likely attract close regulatory scrutiny given di systemic importance of di banking group, with approvals from financial regulators expected to form part of any significant change for ownership structure.
Industry observers also note say acquiring controlling stake for one of Nigeria largest publicly listed financial institutions go rank among di country biggest corporate transactions for recent years. Whether Otedola eventually reach dat milestone remains uncertain. What no dey doubt now na di scale of im ambition.
