…Stock sees over 600% rally in 2 years
In the upper echelons of African business, few names command as much market-moving influence as Femi Otedola. Long recognised as a titan of Nigerian industry with a career spanning petroleum marketing and power generation, Otedola has firmly established a formidable reputation in the financial sector: not merely as an astute investor, but as a master corporate turnaround artist.
Today, that reputation is most vividly on display at First HoldCo Plc, the parent company of Nigeria’s oldest banking institution. Since stepping into the role of group chairman and consolidating his position as the institution’s single largest individual shareholder with a 25.87 percent stake, Otedola has injected both capital and strategic direction into the legacy group.
Under his watch, an era defined by bold share acquisitions, balance-sheet cleaning, and record-breaking financial returns, First HoldCo’s equity surged to unprecedented valuations on the Nigerian Exchange Limited (NGX).
When Otedola was officially appointed as group chairman on January 31, 2024, First HoldCo was trading between N19 and N22 per share. Just over two years into his leadership, the stock is currently trading at N134. This represents an explosive 617.89 percent surge, pushing the financial behemoth past the N6 trillion valuation mark and recently peaking at a landmark N6.09 trillion market capitalisation. It is now the most valuable banking stock listed on the NGX, boasting a 52-week high of N137.20 against a low of N29.25.
During the banking recapitalisation exercise, First HoldCo Plc successfully executed its rights issue. The group offered 5.98 billion new ordinary shares to existing shareholders on the basis of 1 new share for every 6 shares held.
The rights issue was priced at N25 per share. The exercise successfully raised approximately N149.56 billion to meet the Central Bank of Nigeria’s (CBN) upgraded recapitalisation requirements for commercial banks, fortifying the bank’s capital adequacy ratio, and funding business expansion.
The rights issue closed with a strong 125.46 percent subscription rate, reflecting heavy backing from existing investors – including key support from major shareholders like Femi Otedola – as part of the group’s broader financial turnaround strategy.
Read salso: Femi Otedola: Nigerian billionaire rewriting First Holdco value creation playbook
First Holdco’s shareholders who took their rights last year have seen their share price rise by 445.60 percent. This means investors who participated in the rights issue that ended December 30, 2024 have seen their capital multiply more than 5 times over in value, securing an exceptional return on their investment.
The stock’s parabolic ascent – driven by Otedola’s massive accumulation, First Holdco cleaner balance sheets, and a blockbuster half-year profit topping N526billion – happened faster than institutional research houses could update their fundamental models after they had projected an average 12-month price target (PT) around N62.39, ranging from a low estimate of N51.55 to a high estimate of roughly N73.22.
By aligning institutional growth with aggressive shareholder rewards – such as historic dividend commitments and soaring equity value – Otedola is fundamentally rewriting the playbook for corporate value creation in Nigeria’s financial sector, thereby cementing his legacy as a billionaire who doesn’t just accumulate wealth, but actively restores and multiplies it for everyday investors.
The turnaround is evident in First HoldCo Plc’s recently released financial results for the half-year (H1) ended June 30, 2026. Profit After Tax (PAT) printed higher at N526.13 billion, representing a sharp 81.6 percent increase compared to the N289.77 billion recorded in the same period of 2025. Profit Before Tax (PBT) of N653.54 billion represents an 83.5 percent surge year-on-year (YoY). Gross Earnings of N1.93 trillion went up 16.7 percent year-on-year.
This major rebound and near-doubling of profitability has been heavily propelled by strong trading income, lower credit/loan loss impairment charges, and robust non-interest revenue growth, heavily supporting the company’s newly enhanced dividend policy payout of at least 60 percent of profits.
First HoldCo Plc has an official dividend policy to distribute a minimum of 60 percent of the group’s annual Profit After Tax (PAT) as dividends to shareholders.
This represents a major shift from previous years—when payout ratios hovered below 5 percent – underscoring a strategic move by the board, led by Otedola, to heavily prioritise direct shareholder returns following a major balance sheet clean-up and a strong rebound in profitability. The billionaire has similarly hinted at increasing his 26 percent holding in First HoldCo to 51 percent as the lender’s transformation gathers pace.
Institutions under his umbrella have experienced historic share price rallies and record-breaking financial returns, reinforcing the narrative that his approach to value creation breaks conventional moulds in the Nigerian capital market.
Long before his leadership at First HoldCo Plc, Otedola earned a reputation as a corporate restructuring pioneer – transforming then African Petroleum (AP) into Forte Oil Plc, where he implemented strict corporate governance, prompt financial reporting, and a diversified portfolio model that reshaped perceptions of indigenous downstream energy companies.
Also, Otedola’s role at Geregu Power Plc represented one of the most successful and pioneering corporate ventures in Nigeria’s power sector history. His involvement highlights his signature playbook: taking over distressed or underperforming assets, upgrading them, and unlocking immense market value.
He has applied a similar high-conviction playbook to the financial sector. Rather than taking a passive investor approach, he anchors his leadership with massive, multi-billion-naira equity investments, active board chairmanship, and strategic alignment with aggressive corporate capitalisation and profitability goals.