By Daniel Otera
Chairman of First Holdco Plc, Femi Otedola, has attributed his ₦320 billion investment in First Bank to the Federal Government’s recent economic reforms and the policy direction of the Central Bank of Nigeria (CBN), describing them as the foundation of renewed investor confidence in Nigeria’s financial system.
Speaking at the 13th Annual General Meeting of First Holdco Plc held on Thursday, Otedola, a billionaire investor and entrepreneur, stated that his decision to consolidate a controlling interest in First Bank was “a calculated, strategic move” grounded in national economic developments and a personal vision to reposition one of Nigeria’s oldest financial institutions.
“This journey aligns closely with the bold and visionary leadership of President Bola Ahmed Tinubu, who deserves credit for championing the tough but necessary reforms in our economy,” Otedola said.
He also praised CBN Governor Olayemi Cardoso for what he described as “courageous and pragmatic” reforms that are rebuilding credibility in the financial system.
“I commend the Governor of the Central Bank of Nigeria, Mr Yemi Cardoso, for his courageous and pragmatic policy reforms. His actions are restoring credibility to the financial system and giving investors like me the confidence to commit long-term capital to this country,” he added.
Vision Rooted in 2021 Stake Acquisition
Otedola disclosed that the foundation of his involvement with First Bank began in 2021, two years after he divested from Forte Oil Plc. The businessman sold the oil marketing firm formerly African Petroleum after a major restructuring that saw its transformation and rebranding completed in 2019.
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“The intentional drive to rebuild and reposition First Bank became emboldened by the acquisition of additional shares and assuming a leadership position to consolidate these objectives,” he explained.
The acquisition, he said, was not a “gamble” but a “calculated, strategic move to rebuild First Bank into a modern, well-governed, and highly profitable institution.”
Otedola also confirmed that his personal investment in the bank made entirely in cash would exceed ₦320 billion once the next phase of the capital raise is completed.
“By the time we conclude the next phase of capital raise, I would have personally invested over ₦320 billion, all in cash, without borrowing a single Naira,” he said.
Capital Raise Success Reflects Investor Confidence
First Holdco Plc completed the first phase of its ₦150 billion capital raise via a rights issue in March 2025. The exercise was oversubscribed by 25%, attracting ₦187.6 billion in subscriptions, a figure that suggests a significant vote of confidence by shareholders and institutional investors.
The bank has announced plans for a second capital raise phase through private placement, targeting an additional ₦350 billion. Although no timeline was given, Otedola expressed strong optimism that the goal would be met ahead of the CBN’s recapitalisation deadline.
“I am very positive that we will raise the capital required well ahead of the Central Bank’s deadline… that, I can assure you,” he said.
The CBN’s new directive requires Nigerian banks to significantly increase their capital base by 2026. This policy is part of broader monetary reforms intended to strengthen the resilience of the financial sector and align it with global standards.
Legacy and Governance at the Core
Founded in 1894, First Bank remains Nigeria’s oldest bank, with a customer base exceeding 40 million accounts as of 2024. As of December 2023, First Bank reported total assets of over ₦14.2 trillion, according to its audited financials, ranking it among Nigeria’s top-tier banks by asset base.
Otedola pledged to uphold the institution’s legacy while championing disciplined governance and strategic investment.
“As an activist shareholder, my mandate is clear: curb excesses and wastages (no splurging on private jets, unchecked executive luxuries, etc), protect depositors’ funds, deliver strong returns to shareholders, and contribute meaningfully to the society and environment we serve and operate in,” he stated.
He further acknowledged the contributions of the board and management of First Holdco for aligning with his long-term vision, noting their commitment to transforming the bank into a modern financial powerhouse.
“We have remained relevant and impactful for over 130 years as a result of the unwavering commitment of our esteemed 40 million-plus customers. I especially appreciate them,” he said.
A Broader Reform Context
Otedola’s comments come amid a flurry of reforms introduced by President Tinubu’s administration since taking office in May 2023. The government has scrapped fuel subsidies, floated the naira, and introduced tax and fiscal policy changes aimed at reducing Nigeria’s budget deficit and boosting investor confidence.
According to data from the National Bureau of Statistics (NBS), Nigeria recorded a total capital importation of US$3.38 billion in Q1 2024, a sharp rise from US$1.13 billion in the same quarter of 2023.
However, only US$119.18 million of this figure came from Foreign Direct Investment (FDI), accounting for just 3.53% of the total inflow. The bulk of the capital was attributed to portfolio investments and other sources. Meanwhile, the banking sector’s capital adequacy ratio improved to 15.20% by Q4 2024, up from 12.52% in the previous quarter, according to data published by the Central Bank of Nigeria. The increase was linked to enhanced capital buffers and reduced risk-weighted assets, signalling stronger resilience across the financial sector.
First Bank’s capital strengthening aligns with the Central Bank of Nigeria’s (CBN) sweeping recapitalisation directive, which mandates all banks to meet new minimum capital thresholds by March 31, 2026.
The move, according to the apex bank, is aimed at building robust buffers to withstand economic shocks and aligning Nigerian banks with international regulatory standards, particularly the Basel III framework.
Under the new guidelines, commercial banks with international licences must raise their paid-up capital to ₦500 billion, while those with national and regional authorisations must meet ₦200 billion and ₦50 billion respectively. The CBN has clarified that these thresholds must be met strictly through the injection of fresh equity or mergers and acquisitionsnot through retained earnings.
These reforms are expected to strengthen banks’ resilience and ensure the sector’s long-term stability as Nigeria adapts to both local economic challenges and global financial standards.
