In a stunning manoeuvre reminiscent of boardroom dramas from decades past, Femi Otedola has consolidated an unprecedented 40 per cent stake in First HoldCo Plc, the parent company of First Bank, through a series of off-market transactions valued at over ₦324 billion.
Executed on 17 July 2025 via 17 negotiated trades at ₦31 per share, the block deal transferred 10.43 billion ordinary shares—equivalent to a quarter of the company’s 41.87 billion outstanding shares—to First Securities Ltd on behalf of Otedola, now First HoldCo’s Group Chairman.
Regulatory alarm bells rang immediately. Under Nigerian Exchange (NGX) trading rules, any acquisition or disposal exceeding 5 per cent of a company’s share capital must be notified to the NGX Regulation Division.
Yet, when approached, NGX’s spokesperson Clifford Akpolo professed ignorance: “I am not aware of these transactions as the NGX Reg has not notified the NGX”.
Market insiders describe this omission as a textbook breach of transparency, fuelling speculation that the deal was expedited to sidestep public scrutiny.
First Bank’s official communications channels fell silent. Spokesperson Ismail Omamegbe neither answered calls nor replied to text messages regarding the transaction, suggesting an institutional reluctance to comment on the contentious reshuffle.
Unnamed sources within the bank, however, revealed that the transfer was part of a delicate agreement: the two immediate past chairmen—Oba Otudeko and Hassan Odukale—surrendered their holdings to halt ongoing legal proceedings against them, effectively cutting losses in exchange for immunity from protracted litigation.
For Otedola, this watershed moment marks the latest chapter in a long game. In October 2021, he emerged as a significant shareholder with a 5.07 per cent stake, later boosting his holding to 7.57 per cent before a temporary plateau.
Today’s acquisition vaults him to the apex of Nigeria’s banking elite, eclipsing his previous peak and cementing his influence over one of the country’s oldest financial institutions.
Critics warn that such concentration of power risks undermining corporate governance.
“A single shareholder commanding 40 per cent wields disproportionate sway over board appointments and strategic direction,” says financial analyst Adaobi Nwosu. “This could discourage minority investors and compromise checks and balances”.
Comparable transfers in the global banking sector—such as JP Morgan’s emergent stake in London’s Barclays in 2021—triggered rigorous regulatory review; by contrast, Nigeria’s tepid response has emboldened sceptics.
Conversely, proponents argue that Otedola’s deep pockets and commercial track record could be the catalyst for overdue reforms.
Since assuming chairmanship earlier this year, he has publicly pledged to streamline legacy loan portfolios and digitise banking services—a modernisation push that, if realised, might justify his enhanced control.
As the dust settles, the NGX Regulation Division faces mounting pressure to investigate whether notification breaches occurred and, if so, to sanction the parties involved.
Meanwhile, shareholders and market watchers worldwide will scrutinise whether this deal heralds a new era of bold leadership or heralds an unequal power dynamic fraught with governance risks.
