Chairman of First HoldCo Plc, Femi Otedola, has revealed plans to increase his shareholding in the financial services group to more than 51%, saying majority ownership is essential to executing the reforms needed to transform the institution into a world-class banking franchise.

In an interview with Nairametrics, Otedola disclosed that he has invested more than N600 billion of his personal wealth in First HoldCo, describing the commitment as a reflection of his confidence in the group’s long-term prospects rather than market speculation.

“I am sure that you can see from my antecedents that my investment threshold is always over and above 51 per cent,” he said.

According to Otedola, firm shareholder control, while protecting minority investors, provides the support needed to implement difficult reforms and restructuring programmes that ultimately create value for all stakeholders.

The billionaire investor currently owns about 25.8% of First HoldCo and is its largest shareholder.

Just last week, he invested a fresh N222billion in the holding company which is a parent company of First Bank.

In the interview with the editorial team of Nairametrics, Otedola said his strategy mirrors the approach he adopted in previous investments, including Forte Oil Plc and Geregu Power Plc, where he gradually increased his ownership before successfully repositioning the businesses.

“I am on the same trajectory with First HoldCo Plc,” he said.

Otedola said he initially invested in the company because he recognised the strength of its franchise despite its legacy challenges.

According to him, the group’s extensive customer base of more than 30 million, nationwide branch network, deposit franchise and pan-African operations represented significant untapped value, even as governance failures and deteriorating asset quality had pushed the institution to the brink of regulatory intervention.

He described First HoldCo as “an institution on the brink” before the Central Bank of Nigeria intervened in 2021, citing weak governance, mounting non-performing loans and a compromised capital position.

The businessman said the board embarked on an extensive turnaround programme that included cleaning up the balance sheet through a one-off N1.7 trillion impairment charge, strengthening governance, recapitalising the institution and improving risk management and credit controls.

According to him, the bank has impaired more than N3 trillion in bad loans over the past decade while reinforcing a stronger credit culture to support sustainable growth.

He noted that the transformation has begun to deliver measurable results, with the group reporting an 83.5% year-on-year increase in profit before tax to N653.4 billion in the first half of 2026 and return on average equity of 30.4%.

Otedola also dismissed suggestions that his investment in First HoldCo could follow the same exit path as some of his previous turnaround investments, describing the financial Institution as a long-term generational commitment.

Unlike investments in the oil and gas and power sectors, he said First HoldCo’s 130-year history, systemic importance and role in financial intermediation make it fundamentally different.

“First HoldCo is a long-term generational commitment unlike my previous involvements,” he said.

On shareholder returns, Otedola reiterated the board’s ambition to achieve a dividend payout ratio of about 60%, while maintaining sufficient capital to support future growth.

He argued that stronger earnings, improved capital adequacy and disciplined capital allocation would enable the group to reward shareholders without compromising expansion plans across retail banking, digital infrastructure and its pan-African operations.

Otedola also maintained that Nigerian banking stocks remain undervalued compared with their African peers, despite delivering strong returns on equity, attributing the valuation discount to foreign exchange volatility, macroeconomic uncertainty and governance concerns.

He believes First HoldCo’s recent re-rating, which has seen the stock trade above book value, demonstrates that the market is beginning to recognise the institution’s intrinsic value following its turnaround. (Daily Trust)