In a dramatic shake-up of Nigeria’s oldest financial institution, billionaire investor Femi Otedola has emerged as the new majority shareholder of First Bank of Nigeria Holdings Plc (FirstHoldco) following a series of block trades valued at N324.47 billion, executed on the Nigerian Exchange (NGX) on Tuesday.
The landmark transaction, involving the exchange of 10.47 billion units of shares, saw Otedola increase his equity stake from 15 percent to an estimated 40 percent, effectively giving him control of the 130-year-old banking group. The acquisition marks a major turning point in FirstHoldco’s protracted leadership crisis, boardroom tussles, and legacy governance issues.
One of the key outcomes of the transaction is the forced exit of former chairman, Oba Otudeko, who ceded his longstanding influence over the bank amid pressure from the current board and looming legal action. Sources familiar with the matter said the decision was prompted by the threat of criminal prosecution over legacy governance infractions, including questionable insider transactions and violations of banking regulations during his tenure.
Otudeko, now in his early 80s, had maintained significant influence over FirstHoldco through Honeywell Group and other affiliated entities, despite regulatory interventions. His forced sale of more than 20 percent stake in the bank signals the end of an era and the final collapse of a power base that had been steadily eroded since the Central Bank of Nigeria (CBN) intervened in 2021 to sack the First Bank board over corporate governance concerns.
Among the key issues was the bank’s massive exposure to Honeywell Group, estimated at over N400 billion, which the CBN repeatedly flagged as a violation of prudential guidelines. The apex bank had directed First Bank to reduce its exposure and recover the facility. Although parts of the loan were restructured and partially repaid, friction between Otudeko and the regulatory establishment remained unresolved.
Under growing pressure from the current board, backed by Otedola, the bank reportedly prepared a legal case against Otudeko at the Federal High Court in Lagos. To avert the looming litigation, he agreed to divest his shares in what insiders describe as a negotiated exit, walking away with an estimated N300 billion in cash, based on the deal’s pricing at N31.00 per share.
Hassan-Odukale Family Sells Off Remaining Stake
Another major shareholder group, the Hassan-Odukale family, also exited the bank. Known for their long-term investment in FirstHoldco, the family reportedly sold around 5 percent of their holdings as part of Tuesday’s transaction. While their exit was voluntary, it reflects growing uncertainty among legacy investors and a desire to explore better returns elsewhere.
Analysts say the family’s departure, combined with Otudeko’s ouster, paves the way for a new chapter in FirstHoldco’s history, underpinned by Otedola’s decisive control and clear strategic vision.
The massive share transfer was executed through 17 negotiated off-market block deals, at a fixed price of N31.00 per share, just below the day’s closing price of N32.20, which had surged by 9.9 percent following the transaction. The coordinated trades were arranged privately and later reported to the Exchange, as is customary for large-volume negotiated deals.
Market sources disclosed that First Securities Ltd acted primarily as the buyer in the transactions, while shares were offloaded by several major stockbroking firms including CardinalStone Securities, Meristem Stockbrokers, Rencap Securities, Regency Asset Management, United Capital Securities, and Stanbic IBTC Stockbrokers. In some trades, First Securities also appeared as a seller, suggesting internal transfers or portfolio restructuring.
The transaction boosted FirstHoldco’s market capitalisation beyond N1.44 trillion, sending a strong signal to investors and regulators that a new era of stability may be underway at the institution.
While Otedola’s takeover has been widely welcomed as a move toward restoring confidence, the new controlling shareholder faces formidable challenges. Chief among them is the CBN’s recapitalisation directive, which mandates Tier-1 banks to raise a minimum of N500 billion in fresh capital by early 2026.
FirstHoldco has already announced a rights issue of N346 billion, but analysts say the bank will need an additional N154 billion to meet the capital threshold. This will test Otedola’s ability to leverage his investor network and credibility to raise funds swiftly.
Beyond capitalisation, First Bank still grapples with a mountain of non-performing loans (NPLs)—believed to be approaching N1 trillion—many of which are remnants of years of insider lending and poor risk management. In addition, the CBN has instructed the bank to end its reliance on regulatory forbearance, meaning it must now fully provision for bad debts and tighten its credit policies.
“This is a major reset moment for First Bank,” said a Lagos-based financial analyst. “Otedola now has full control, but that also means he has full responsibility. If he can clean up the books, reposition the bank, and raise new capital, he’ll not only revive First Bank but also make history.”
FirstHoldco has, over the past five years, been at the centre of one of Nigeria’s most high-profile corporate boardroom battles. The tussle between Otudeko and the CBN, the entry of Otedola, and the clash with other shareholders like Tunde Hassan-Odukale created uncertainty and eroded market confidence.
Otedola’s emergence as the dominant figure is being interpreted as the final consolidation of power following a prolonged struggle. Known for his success in the oil, energy, and finance sectors, he is expected to bring a more performance-driven, transparent leadership culture to the institution.
For Oba Otudeko, who once sat atop one of Nigeria’s most expansive conglomerates, the exit marks a sobering end to decades of influence. While he leaves with considerable wealth, his forced departure also highlights the rising accountability standards in Nigeria’s banking sector.
For Otedola, the takeover is both a personal and corporate milestone. Having become the single largest shareholder of FirstHoldco, he now carries the responsibility of charting a new future for a bank once considered a national icon but which has underperformed in recent years.
Stakeholders, investors, and regulators will now be watching to see how quickly he can reverse the institution’s fortunes and restore its place at the apex of Nigerian banking.
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