Billionaire investor Olufemi Otedola has further consolidated his position in First HoldCo Plc after an entity linked to him acquired shares worth ₦14.8 billion, lifting his combined ownership in the banking group to 17.56 percent.
The latest acquisition was disclosed in a filing published on the Nigerian Exchange (NGX), which revealed that Calvados Global Services Limited—a company owned by Otedola—purchased 369,986,122 ordinary shares of First HoldCo at an average price of ₦40.06 per share.
The transaction, tagged NGFBNH000009, was executed on December 18, 2025, and significantly boosted market activity in the stock. Total trading volume for the day surged to 385.6 million shares, highlighting strong investor attention and heightened liquidity around First HoldCo.
Strengthening influence in a systemically important bank
The purchase further strengthens Otedola’s influence in one of Nigeria’s largest and most systemically important financial institutions. Based on the group’s most recent shareholding disclosures, Otedola already held a substantial stake through a combination of direct and indirect holdings accumulated steadily over the past two years.
According to the company’s books, he owns 3,251,346,245 shares directly, representing 7.76 percent of First HoldCo’s issued share capital. In addition, he holds 3,491,125,586 shares indirectly—equivalent to 8.34 percent—through related entities.
Following the latest acquisition by Calvados Global Services Limited, Otedola’s indirect holdings are expected to rise to approximately 3,861,111,708 shares, or 9.22 percent. This brings his combined official ownership to about 17.56 percent, placing him firmly among the most influential shareholders in the group and giving him considerable leverage in shaping its long-term strategic direction.
Ownership consolidation and internal shifts
Market analysts note that Otedola’s rising ownership stake has coincided with a more assertive operational posture within the First HoldCo group, particularly around balance-sheet discipline and asset quality.
In recent months, First Bank has intensified loan recovery efforts, tightened credit monitoring processes, and demonstrated reduced tolerance for long-standing non-performing loans that had previously weighed on the balance sheet. While the bank has not publicly linked these measures to shareholder influence, the timing has drawn attention in market circles.
The pattern mirrors Otedola’s track record in previous investments, where increased ownership concentration was followed by tighter financial controls, a sharper focus on cash generation, and a more conservative approach to risk management. Analysts say such shifts often signal a push toward sustainable profitability rather than balance-sheet expansion at all costs.
Recapitalisation backdrop adds urgency
Otedola’s continued accumulation of First HoldCo shares comes at a critical time for Nigeria’s banking sector, which is approaching the end of the Central Bank of Nigeria’s recapitalisation deadline set for early 2026.
Banks across the system are under pressure to shore up capital buffers, strengthen asset quality, and position early for equity raises in what is expected to be a crowded and competitive capital-raising environment. Against this backdrop, early action is increasingly viewed as a strategic advantage.
Market sources indicate that First HoldCo is close to completing a private placement as part of its broader capital-raising plans ahead of the deadline. The move is reportedly aimed at bolstering capital early, improving balance-sheet resilience, and reducing execution risk before the wider recapitalisation window opens.
Recent insider-linked share purchases appear to reinforce this strategy. Since the release of the group’s nine-month financial results in late October 2025, two other notable transactions have been recorded. These include a ₦2 billion acquisition by a company linked to First Bank chairman Ebenezer Olufowose, as well as a ₦33.96 million purchase by an entity associated with Group Managing Director Adebowale Oyedeji.
Market reaction
Investor response to the flurry of insider and strategic buying has been swift. First HoldCo shares are up 29 percent in December alone, pushing month-to-date gains to 37.36 percent. Total trading volume for the month has reached approximately 657 million shares, reflecting renewed interest from both institutional and retail investors.
The stock is currently trading at ₦42.65, having rebounded strongly from a brief dip to ₦31.05 in November. Rising demand, insider accumulation, and expectations surrounding sector-wide recapitalisation have combined to restore bullish sentiment around the lender.
With ownership consolidation accelerating and capital-raising plans taking shape, market watchers believe First HoldCo is positioning itself early for the next phase of Nigeria’s banking sector transformation—one in which scale, capital strength, and governance discipline will increasingly define long-term winners.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
