In a dramatic turn of events at the Nigerian Exchange Limited (NGX), billionaire investor Femi Otedola has taken full control of First Bank, Nigeria’s oldest bank, in a series of mega transactions valued at ₦324.47 billion.
The transactions involved 10.47 billion shares of First Holdco Plc in off-market block trades executed at ₦31.00 per share, just as the stock closed at ₦32.20 with a 9.9% gain.
This new share acquisition raises Otedola’s stake from 15% to roughly 40%, making him the undisputed controlling shareholder.
Old Guards Exit the Stage
The power shift followed the forced sale of over 20% of shares tied to Oba Otudeko, the former Chairman, after moves by the Otedola-backed management to prosecute past dealings linked to him.
“Oba Otudeko is now expected to exit the bank gracefully, walking away with over ₦300 billion,” a financial analyst hinted. The expected outcome is that First Bank will withdraw criminal complaints against Otudeko, now 82.
Another notable exit came from The Hassan-Odukale family, long-term shareholders who sold off 5% of their holdings, seeking higher value in other investments.
Market watchers see these exits and new leadership as a path toward long-awaited stability after years of internal boardroom battles.
Raising Fresh Capital Remains the Mountain to Climb
But Otedola’s biggest challenge lies ahead: raising ₦500 billion in fresh capital before the Central Bank of Nigeria’s (CBN) deadline in less than a year.
Out of that sum, ₦154 billion is still outstanding.
He also faces the burden of managing non-performing loans exceeding ₦1 trillion, alongside meeting a looming CBN directive to end regulatory forbearance.
“This is not just about shareholding power. This is about cleaning the books and restoring public confidence,” a market operator said.
Behind the ₦324bn Deal
THISDAY reports that 17 off-market trades were struck privately between First Securities Ltd (as buyer) and a pool of top sellers, including CardinalStone Securities, Meristem Stockbrokers, Renaissance Capital, Regency Asset Management, United Capital Securities, and Stanbic IBTC Stockbrokers.
Interestingly, First Securities Ltd also acted as a seller in some trades, suggesting internal portfolio reshuffling or strategic account transfers.
Off-market trades of this nature are not conducted through regular buy/sell orders. Instead, they’re negotiated privately and later reported to the Exchange. Such block deals often precede major corporate shifts.
The total transaction volume pushed NGX’s market value to over ₦1.44 trillion in a single day.
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