The prolonged leadership and ownership tussle at First Holdco Plc, the parent company of Nigeria’s oldest financial institution, First Bank of Nigeria, is drawing to a historic close. Multiple sources close to the matter have confirmed that two of the bank’s largest shareholder blocs – those controlled by Oba Otudeko and the Leadway Assurance/Olukayode Odukale camp – are in advanced stages of exiting their stakes.
Billionaire investor and current Chairman of First Holdco, Femi Otedola, is acquiring their holdings at a negotiated price of N31 per share. This marks a major consolidation in the ownership structure of FirstBank and potentially ends one of the most protracted boardroom battles in Nigeria’s banking sector.
The internal conflict for control of FirstBank has spanned several years, involving major business figures: Oba Otudeko, Olukayode Odukale (via Leadway Assurance), and Femi Otedola. The battle was fought on many fronts, including aggressive share acquisitions, contested board appointments, and regulatory interventions from the Central Bank of Nigeria (CBN), which had stepped in at times to maintain stability in the bank.
Otedola’s ambition to control the institution became evident in 2021 when he began strategically increasing his stake in the bank. His acquisition of 797.9 million shares in July 2023 at an average price of N21.58 per share, worth N17.2 billion, marked a turning point. That deal brought his shareholding to 11.64 per cent – the first time a single shareholder surpassed the 10 per cent threshold in the highly fragmented ownership structure of the bank.
Subsequently, he purchased another 534 million shares at N30 per share, further raising his stake to 13.16 per cent. Earlier that year, he had invested N18.9 billion to reach 9.41 per cent equity. These moves showed a clear and calculated strategy to take control, a goal that now appears to be within reach.
Otedola was appointed as a non-executive director in August 2023 and became Chairman of First Holdco barely six months later. Under his influence, FirstBank has witnessed a renewed corporate identity, including the recent strategic decision to relocate its headquarters to Eko Atlantic City – a bold move that symbolizes a forward-thinking vision.
With Otudeko and Odukale on their way out, Otedola is poised to become the undisputed principal shareholder, potentially reshaping FirstBank in the mold of other prominent Nigerian banking giants led by strong individual figures. This parallels the leadership dynamics seen with Jim Ovia at Zenith Bank and Tony Elumelu at United Bank for Africa (UBA).
Industry analysts believe this development will bring long-awaited stability to FirstBank. The years of boardroom wrangling had left the bank operating under the cloud of uncertainty. According to experts, unified leadership will now allow the institution to make long-term strategic decisions without the drag of internal disagreements.
More significantly, the buyout deal comes with over five per cent premium payment to the outgoing shareholders, signaling not just the urgency but the seriousness with which Otedola intends to consolidate control and move forward.
Market watchers have responded positively to these developments. FirstBank has outperformed peers in recent times, registering a 19 per cent month-on-month gain, a trend attributed to renewed investor confidence following Otedola’s visible influence and investment.
As the banking sector continues to evolve, the FirstBank story under Otedola’s leadership is expected to enter a new chapter of bold reforms, aggressive growth, and repositioning as a modern, tech-forward financial powerhouse. Whether these expectations will be met remains to be seen, but for now, stakeholders appear optimistic.
