In a seismic shift within Nigeria’s financial sector, veteran businessman Oba Otudeko has formally exited First Bank of Nigeria’s parent company, FBN Holdings Plc (First HoldCo), in a monumental off-market transaction valued at ₦323.33 billion ($211.4 million). The deal, executed through 17 negotiated block trades on the Nigerian Exchange (NGX), marks the end of Otudeko’s decades-long influence over Nigeria’s oldest banking group and consolidates billionaire Femi Otedola’s control.
Breakdown of the Transaction:
- Number of shares sold: 10.43 billion ordinary shares
- Percentage of issued shares: 25% of FBN Holdings’ total equity
- Price per share: ₦31.00 ($0.020)
- Total transaction value: ₦323.33 billion ($211.4 million)
- Buyer: Undisclosed (widely speculated to be Femi Otedola or entities linked to him)
The End of an Era: Otudeko’s Exit and Ongoing Legal Challenges
Oba Otudeko, founder of Honeywell Group and former chairman of FBN Holdings, was removed from the board in 2021 amid regulatory and governance concerns. His exit follows years of financial and legal turbulence, including:
- A prolonged dispute with Ecobank over an alleged debt funneled through Barbican Capital, leading to attempts to seize his shares.
- Ongoing criminal proceedings related to a ₦30 billion ($19.6 million) loan fraud case filed against him in early 2025.
This sale effectively severs Otudeko’s remaining ties to the bank he once chaired and resolves a significant source of boardroom friction.
Femi Otedola: Consolidating Power and Reshaping First Bank
With this acquisition, Otedola—already the largest individual shareholder—has significantly tightened his grip on FBN Holdings. Prior to this transaction, he held an 11.8% stake. Post-acquisition, his ownership is expected to rise sharply, though exact figures remain undisclosed pending official NGX filings.
Under Otedola’s leadership as chairman, FBN Holdings has:
- Initiated a comprehensive cleanup of non-performing legacy loans.
- Refreshed executive and non-executive leadership.
- Strengthened corporate governance and compliance frameworks.
Market Reaction and Financial Impact:
The transaction triggered a surge in market activity and investor confidence:
- FBN Holdings’ share price rose to ₦32.20 ($0.021) following the trade.
- Market capitalization climbed above ₦1.3 trillion ($883.5 million).
- NGX total turnover skyrocketed by 807% to 11.67 billion shares valued at ₦363.41 billion ($237.9 million) in a single day.
Analysts and investment bankers have welcomed the move, noting that it removes a major overhang on the stock and allows management to focus fully on strategic growth.
Strategic Implications and Future Outlook:
FBN Holdings reported robust earnings exceeding $660 million in 2024, demonstrating strong operational resilience despite macroeconomic challenges. With Otedola now in firm control, the group is expected to:
- Accelerate its expansion across Africa.
- Deepen investments in digital banking and fintech.
- Enhance shareholder returns through improved dividends and share price appreciation.
Otedola’s influence extends beyond banking into energy (Geregu Power Plc) and ports, positioning him as one of the most powerful business leaders in Nigeria. His consolidation of First Bank signals a new chapter for the 130-year-old institution—one defined by strategic clarity, financial stability, and growth ambition.
This transaction is not merely a change in ownership but a definitive turning point in the history of one of Nigeria’s most iconic financial institutions.
