BY DIRAMAKINI
NIGERIA billionaire Femi Otedola has spent an estimated $300 million this year buying shares in First HoldCo, sharply increasing his stake in the parent company of one of West Africa’s oldest banks.
According to market data, Otedola’s ownership has risen from 5.65% prior to his appointment as chairman to more than 26%, marking one of the most aggressive accumulation campaigns in Nigeria’s financial sector this year.From Investor to Potential Majority Owner
The scale of the purchases suggests the investment is more than a portfolio play. Otedola, whose business interests span energy, power generation and finance, said this week that he is following the same trajectory at First HoldCo that he has used in other companies where he eventually secured majority control.
That statement has fueled speculation that his next target could be ownership of more than 51% of First HoldCo.
“I am following a similar trajectory” at First HoldCo to past investments, Otedola said, signaling intent to deepen his influence in the financial group.
Control of a 132-Year-Old Banking Institution
A majority stake would give Otedola control of FirstBank, a 132-year-old lender with operations across Nigeria and in Ghana, Guinea, Sierra Leone, Senegal, the Democratic Republic of Congo, Gambia and the United Kingdom.
FirstBank remains one of Nigeria’s largest banks by assets and branch network, and a key institution in West African trade finance.
Capital Hurdle Ahead
Reaching majority ownership will require significant additional capital. Moving from the current 26% to more than 51% means acquiring another 25+ percentage points in a widely held, liquid financial holding company.
Analysts say the continued buying could reshape corporate governance at First HoldCo and influence strategy at FirstBank as competition intensifies in Nigeria’s banking sector.
Otedola first became chairman of First HoldCo after building an initial stake, and has since positioned himself as the single largest shareholder.