By Ayomide Otitoju
Chairman of First HoldCo Plc, Femi Otedola, has reaffirmed his long-term commitment to the financial services group, disclosing that he has invested more than ₦600 billion of his personal wealth in the company as its market capitalisation surpassed ₦6 trillion, marking a new phase in the institution’s transformation.
In an interview with Nairametrics, Otedola said his investment was driven by a commitment to restore confidence in one of Africa’s oldest financial institutions and expand financial inclusion, describing the move as a strategic effort to unlock the group’s long-term value rather than a speculative investment.
The billionaire businessman, who owns about 25.8% of First HoldCo, said the institution’s franchise—comprising more than 30 million customers, an extensive branch network, a strong deposit base and a pan-African footprint—provides a solid platform for sustainable growth.
According to Otedola, First Bank was facing severe governance and financial challenges before 2021, including more than ₦2 trillion in non-performing loans, weak corporate governance and regulatory concerns that prompted the Central Bank of Nigeria (CBN) to dissolve the boards of First Bank and First HoldCo.
He said his gradual acquisition of shares was a deliberate rescue strategy aimed at rebuilding the institution, eventually making him the group’s largest shareholder before his appointment as chairman in January 2024.
Drawing from his experience in turning around Forte Oil Plc and Geregu Power Plc, Otedola said the board adopted a transformation strategy centred on “People, Philosophy and Process” to restore the bank’s competitiveness.
He disclosed that the turnaround included a comprehensive balance-sheet clean-up, with a ₦1.70 trillion one-off impairment charge to eliminate legacy problem assets, alongside an aggressive recapitalisation programme involving rights issues, private placements and strategic divestments.
The recapitalisation enabled the group to exceed the CBN’s ₦500 billion minimum capital requirement while pursuing a ₦1 trillion paid-up capital target.
Otedola said the reforms have strengthened governance, improved credit recovery and enhanced operational efficiency.
He noted that First HoldCo recorded an 83.5% year-on-year increase in profit before tax to ₦653.54 billion in the first half of 2026, while return on average equity rose to 30.4%, which he described as the highest among Nigeria’s leading banking groups.
The chairman also revealed that he has invested more than ₦600 billion of his personal wealth in First HoldCo, saying the investment reflects his confidence in the institution’s future and his commitment to its long-term success.
“Our future will be built on a strong human resource base, world-class processes and the right philosophy,” he said, adding that the bank’s growth strategy is anchored on transparency, accountability, reliability and trust.
Addressing speculation that he could eventually dispose of his stake after completing the turnaround, Otedola dismissed comparisons with his previous investments in Forte Oil and Geregu Power, describing First HoldCo as a long-term generational commitment.
He said the institution’s more than 130-year history, systemic importance and role in Nigeria’s financial system distinguish it from his previous investments.
According to him, stronger governance, customer confidence and prudent risk management will continue to drive deposit growth, shareholder value and reduced regulatory intervention.
On shareholder returns, Otedola defended the board’s target of maintaining a dividend payout ratio of about 60%, saying the policy strikes a balance between rewarding investors and preserving capital for future expansion.
He explained that dividends would only be paid from capital above regulatory requirements, noting that First HoldCo’s earnings trajectory provides adequate room to support both growth and shareholder returns.
The chairman projected that the group could deliver about ₦1.2 trillion in profit before tax for the full 2026 financial year.
Commenting on the company’s share price performance, Otedola said the rally reflected investor confidence in the bank’s transformation and strong financial results.
According to him, First HoldCo’s share price rose from ₦47.90 at the end of 2025 to more than ₦127 by late July 2026, representing a gain of about 165%, briefly making it Nigeria’s most valuable listed banking stock.
He attributed the performance to improved earnings and his continued investment in the company, saying it demonstrates confidence in the institution’s long-term prospects.
Otedola disclosed that First HoldCo impaired more than ₦3 trillion over the past decade due to legacy non-performing loans linked to delinquent borrowers, but said the group has since strengthened its credit governance framework, improved debt recovery and launched a culture transformation programme to prevent similar challenges.
He also highlighted the company’s recapitalisation efforts, noting that First HoldCo met the CBN’s ₦500 billion minimum capital requirement ahead of the March 2026 deadline before securing shareholder approval for an additional ₦253 billion capital raise in May 2026 as part of its plan to increase paid-up capital to ₦1 trillion.
According to Otedola, stronger capitalisation is critical to supporting Nigeria’s ambition of becoming a $1 trillion economy and ensuring financial institutions remain resilient and well-governed.
He further argued that Nigerian banks have historically traded below comparable African peers despite generating strong returns on equity, attributing the discount to macroeconomic uncertainty, foreign exchange volatility and governance concerns rather than weak fundamentals.
Otedola said First HoldCo’s current valuation of about 1.7 times book value and annualised return on equity of around 30% demonstrate the value that can be unlocked through stronger governance and sustained profitability.
Looking ahead, he said his vision is to restore First HoldCo as Nigeria’s leading financial institution and position it among Africa’s foremost banking groups through sustained growth, sound corporate governance, innovation and financial inclusion.
He added that the group’s long-term objective is to consistently deliver strong dividends, deepen stakeholder trust and create lasting value for customers, employees, shareholders and the wider African economy.
