A total of ₦324.47 billion worth of 10.47 billion shares in First Bank Holding Company Plc (First Holdco) exchanged hands on the Nigerian Exchange Limited (NGX) in a block trading mega-deal that saw billionaire businessman Femi Otedola increase his stake in the bank from 15% to about 40%.
The off-market transaction—one of the largest in recent Nigerian capital market history—effectively hands Otedola majority control of Nigeria’s oldest and most systemically important financial institution, a bank long plagued by shareholder disputes and governance instability.
The massive share acquisition came as Oba Otudeko, the bank’s former chairman, was compelled to offload over 20% of his holdings amid mounting legal and regulatory pressure. First Bank, under Otedola’s influence, had initiated criminal proceedings against Otudeko over legacy governance issues, despite earlier regulatory resolutions. With the sale, sources say the bank is now expected to drop its case, allowing Otudeko, now 82, to exit the scene with over ₦300 billion in cash.
Another prominent shareholder, the Hassan-Odukale family, also exited the bank, selling 5% of their stake as part of the sweeping reshuffle.
Market insiders described the trades as negotiated block deals, arranged off-market and reported to the NGX. The shares were transacted at a fixed price of ₦31.00 per share, while First Holdco’s stock closed the day at ₦32.20, up 9.9%.
The deals were executed through First Securities Ltd—widely believed to be linked to Otedola—as the major buyer, with key brokerage firms including CardinalStone Securities, Meristem Stockbrokers, Rencap Securities, United Capital Securities, Stanbic IBTC Stockbrokers, and others acting as sellers. First Securities also featured as a seller in some of the trades, suggesting portfolio reshuffling or inter-account transactions.
With the ownership dispute now resolved, analysts say Otedola’s control may usher in stability and strategic realignment for the bank. But significant hurdles remain: First Bank must raise an additional ₦154 billion to meet the Central Bank’s recapitalization requirement of ₦500 billion within the next year. It also faces a heavy load of non-performing loans estimated at over ₦1 trillion, alongside new CBN directives to end regulatory forbearance.
Despite these challenges, Wednesday’s landmark transaction boosted First Bank’s market capitalization past ₦1.44 trillion, signaling renewed investor optimism for the institution’s future.
