NIGERIA: FirstHoldCo, the parent company of First Bank of Nigeria PLC has never been the same since the shrewd investor, Mr Femi Otedola took over its reigns as Chairman of the company. He has since set out to transform the company and has made several strategic decisions and moves in line with that. Recent reports from late 2025 show that his stake in the Holdco is over 17%, with some reports placing it at over 40% considering acquisitions through his investment vehicles, making him the major shareholder. But this did not happen without a fight with the previous significant shareholders before displacing them and taking over the institution. Shareholders and investors in the company have also had good returns investing in the company since Otedola took over, with the share price rising from sub ₦20 to over ₦55 recently (52 week high). Some savvy investors who understand Femi Otedola's antecedents and the turnaround that was likely to follow with his entry, took position immediately the news filtered in that Otedola had started acquiring stake in the company, and have so far been rewarded well in terms of share price appreciation.
On the 2nd of January, 2026 First Holdco announced that its commercial banking subsidiary, First Bank of Nigeria, has successfully met the Central Bank of Nigeria's minimum capital requirement for Commercial banks with international license/authorisation of ₦500 billion. This was achieved through a series of "strategic capital initiatives, including a Rights issue, a Private Placement, and the injection of proceeds from the divestment of the Group's merchant banking subsidiary". This achievement has been applauded by Shareholders and investors, who consider the strategic initiatives as a smart move only achievable under the new Holdco's leadership. Recall that the Company had notified investors on the 27th of November, 2025, of the completion of the sale (divestment) of its Merchant Bank subsidiary (FBNQuest Merchant Bank Limited) to EverQuest Acquisition LLP (a special-purpose investment vehicle formed in June 2024 by Custodian Investment PLC, EverCorp Industries, and Aion Investments to acquire FBNQuest Merchant Bank from FBN Holdings PLC) for an undisclosed amount. A BusinessDay article, "Anatomy of the deal: FBNQuest to EverQuest", further highlights more details of the deal and possible worth of the deal. The next phase for First Holdco before the CBN's March 2026 recapitalisation deadline is for the Holdco to ensure that its current capital structure vis a vis its subsidiaries aligns with the CBN's Guidelines to Financial Holding Companies, Section 7.1 & 7.2 which we had referenced in previous related articles on Access Holdings PLC and GTCO PLC.
First Holdco also recently informed the NGX and Investors of the appointment of New Board Members for its Non-Commercial Banking subsidiaries. The Group Chairman of First Holdco PLC, Mr Femi Otedola, commenting on the appointments, said: "We are delighted to welcome these distinguished professionals to the boards of our non-commercial banking subsidiaries. Their proven expertise, impeccable track records, and leadership will play a critical role in shaping the next phase of our growth, enhancing stakeholder value, and reinforcing our position as a trusted African leader delivering innovative solutions across diverse sectors. These appointments reaffirm our commitment to building resilient businesses that contribute meaningfully to economic development in the broader ecosystem in which we operate". The appointments announced are below:
- Ebikabo Williams (Chairman), Usman Dantata Jr, Binta Max Gbinije and Alero Mobola Adollo were appointed to the board of First Asset Management Limited.
- Yewande Amusan (Chairman), Ahmed Indimi, Irene Akpofure, Adenike Kuti, and Zeal Akaraiwe were appointed to the board of FirstCap Limited.
- John Akpeki (Chairman), Omolara Adeyemi, Susan Younis, and Kemi Andu-Alausa were appointed to the board of First Securities Brokers Limited.
- John Lee (Chairman), Abiola Alabi, Adebisi Sola-Adeyemi, and Ugochukwu Obi-Chukwu of Nairametrics were appointed to the board of First Trustees Limited.
- Akinola Phillips (Chairman), Ije Onejeme, Folukemi Akinmeji, and Mojisola Cardozo were appointed to the board of First Insurance Brokers.
Meanwhile, in a similar vein as FBN Holdco, Fidelity Bank PLC on the 6th of January, 2026, provided update on the Bank's Recapitalisation, informing the public that it has successfully completed a Private Placement of Ordinary shares on December 31, 2025, resulting in the bank raising additional ₦259 Billion, increasing its eligible capital from ₦305.5 billion to ₦564.5 Billion. Recall that the Bank's Shareholders at an Extraordinary General Meeting on the 6th of February, 2025, had authorized the board to raise capital by issuing up to 20 Billion ordinary shares by way of Private placement. Going by the amount raised through the private placement, after the public offer and rights issue in 2024 where it had raised ₦175.85 billion boosting its eligible capital to ₦305.5 billion, it appears like the private placement could have been priced at circa ₦13 per ordinary share if 20 billion ordinary shares were issued accordingly.
With all these capital raised by Nigerian banks following CBN's capital requirement deadline, the onus now falls on the banks to sweat their capital adequately to generate commensurate returns for investors. Mr Femi Otedola had recently commended the boldness and reforms of the current CBN Governor, Yemi Cardoso, specifically acknowledging the banking sector recapitalisation. He is of the view that it was the right move, and went further to emphasize his belief that the time has come to raise the minimum capital requirement for International Banking license from ₦500 billion to at least ₦1 trillion. He noted that "a modern economy aiming for the $1 trillion mark cannot rely on weakly capitalised banks. Stronger banks mean better governance, broader ownership, and institutions that are not like personal estates, a problem we have lived with for far too long".
Hopefully with Otedola's presence in the Nigerian Banking "oligarchy" and the perceived disciplined return to orthodox monetary policy led by the current CBN Governor, the Nigerian Banking Sector might just be gearing up for another phase of growth. Exciting times ahead.
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