Femi Otedola, billionaire businessman and chairman of First HoldCo Plc, has strengthened his grip on Nigeria’s oldest financial institution after acquiring an additional 1.779 billion ordinary shares valued at N222.2 billion, bringing his total investment in the lender to an estimated N1.47 trillion ($1 billion).
The acquisition, disclosed in a regulatory filing submitted to the Nigerian Exchange (NGX) on Thursday, raises Otedola’s beneficial ownership in First HoldCo to 11.76 billion shares, representing 25.87 percent of the company’s issued share capital, up from 21.96 percent previously.
The latest purchase, executed at N124.90 per share through his investment vehicle, Calvados Global Services Limited, marks the second major block acquisition by Otedola within eight days and reinforces his position as the financial institution’s largest shareholder.
Combined with the 706.13 million shares worth N77.59 billion acquired on July 22, Otedola has committed nearly N300 billion in fresh capital to First HoldCo in just over a week.
The aggressive accumulation comes as First HoldCo continues to enjoy a sharp market re-rating, with investors rewarding the bank for stronger earnings, improved governance, and expectations of sustained profitability.
Closing in on the mandatory takeover threshold
Otedola’s latest acquisition has pushed his ownership to within striking distance of Nigeria’s mandatory takeover threshold.
Under the Investments and Securities Act (ISA) 2025 and Securities and Exchange Commission (SEC) rules on mergers, takeovers, and acquisitions, any shareholder that acquires 30 percent or more of the voting shares of a listed company is required to make a mandatory takeover offer (MTO) to the remaining shareholders.
At 25.87 percent, Otedola remains below the regulatory trigger, but his continued purchases have intensified market speculation over whether he intends to eventually cross the threshold.
Crossing the 30 percent mark would require an offer to minority shareholders under SEC rules unless a regulatory exemption applies.
The latest transaction, therefore, places investors’ attention not only on First HoldCo’s fundamentals but also on the potential strategic direction of its ownership structure.
A N1.47 trillion bet on First HoldCo
Based on Thursday’s transaction price of N124.90 per share, Otedola’s 11.76 billion-share holding is now worth approximately N1.47 trillion, making it one of the largest individual equity investments in Nigeria’s financial services industry.
The valuation also places the investment among the largest publicly listed holdings controlled by a single Nigerian businessman outside the oil and telecommunications sectors.
His growing exposure reflects both continued accumulation and the remarkable appreciation in First HoldCo’s share price over recent weeks.
The stock has more than doubled over the past month, making it one of the Nigerian Exchange’s best-performing large-cap equities.
The rally has also propelled First HoldCo ahead of Zenith Bank to become Nigeria’s most valuable banking stock by market capitalisation, an unprecedented shift for a bank that only recently emerged from years of governance uncertainty.
First HoldCo’s rally is reshaping how investors value Nigerian banking stocks.
For years, most listed Nigerian banks traded below their book values despite delivering strong profitability, reflecting concerns around foreign exchange volatility, macroeconomic uncertainty and governance risks.
That discount has begun to narrow as banks report stronger earnings following exchange rate liberalisation, higher interest income and improved capital positions.
FirstHoldCo has led that re-rating.
The bank now trades at roughly 1.7 times book value while generating an annualised return on average equity (ROAE) of around 30 percent, placing its valuation closer to leading African banking groups than many domestic peers.
Investors appear increasingly willing to assign higher valuation multiples to institutions demonstrating sustainable earnings growth, stronger governance, and improved capital allocation.