Billionaire businessman Femi Otedola has taken control of FBN Holdings, the parent company of First Bank of Nigeria, after acquiring around 40 percent of the company’s shares in a major off-market transaction on the Nigerian Exchange.
The deal, executed through 17 negotiated trades at ₦31 per share, involved the transfer of 10.43 billion units of FBN Holdings shares and is estimated to be worth over ₦324 billion. The acquisition, confirmed by trading data and capital market sources, marks a turning point in the ownership structure of one of Nigeria’s oldest and most prominent financial institutions.
Otedola’s move comes after a prolonged boardroom tussle involving former majority stakeholders, including Oba Otudeko and Hassan Odukale, both of whom are understood to have sold their shares to facilitate the transaction. With this acquisition, Otedola becomes the clear majority shareholder, giving him significant influence over board decisions and the company’s strategic direction.
The share price of FBN Holdings reacted positively to the news, climbing by nearly 10 percent to close at ₦32.20 and boosting the company’s market capitalisation beyond ₦1.3 trillion. Analysts believe the development signals renewed investor confidence and positions the institution for more assertive reforms under new leadership.
Despite this, FBN Holdings faces an immediate challenge with the Central Bank of Nigeria’s recapitalisation directive. The CBN has mandated all banks to meet a minimum capital base of ₦500 billion. As of June, FBN Holdings had reportedly raised ₦346 billion, leaving a shortfall of approximately ₦154 billion that must be addressed to meet regulatory requirements.
Analysts warn that the real test lies ahead, particularly in tackling the bank’s non-performing loans, which are estimated to be over ₦1 trillion. This lingering debt issue, inherited from previous management, remains a critical barrier to restoring full market confidence and profitability.
Meanwhile, in a related market development, Guaranty Trust Holding Company (GTCO) became the first Nigerian banking stock to cross the ₦100 mark, closing at ₦101. The company’s strong Q1 earnings and dual listings have driven market interest, with its profit before tax reaching ₦300.4 billion and fresh capital injection supporting expansion plans.
Otedola’s return to the helm of FBN Holdings is seen as a calculated power play, having previously held the largest shareholder position in 2021 before being overtaken. His latest acquisition now places him firmly in control, and market watchers are keenly observing how his influence will reshape the bank’s future.
The coming months will be critical as FBN Holdings works to meet the CBN’s capital deadline, strengthen its asset quality, and reassure investors of its long-term sustainability under new leadership.
