Femi Otedola, the newly appointed chairman of First Bank of Nigeria Holdings (FBN Holdings Plc), confirmed his top investor status in 2023 by purchasing additional shares totaling $130 million in the group.
Within 24 hours of his appointment, he made a strategic acquisition in the business’s unaudited financial records to bolster his position as the largest stakeholder in the Lagos-based financial services group.
According to newly revealed unaudited financial accounts, Otedola acquired 4,916,096,725 shares in 2023 for N117.25 billion ($130.4 million), increasing his ownership from 5.57 percent to 19.27 percent and totaling 6,915,439,101 shares as of December 31, 2023.
Otedola’s ownership increased significantly through both direct and indirect purchases, with 30,033,982 shares purchased personally and 4,886,062,743 shares acquired indirectly via his company, Barbican Capital Limited.
At the time of writing, the market value of Otedola’s 19.27 percent ownership is N164.93 billion ($183.42 million). This strategic move has also helped to drive up FBN Holdings’ share price, which has risen from N12.6 in October 2021 to N23.85.
In October 2021, Femi Otedola’s initial acquisition of a 5.07-percent stake in FBN Holdings had a significant influence on the Nigerian Exchange, causing the share price to skyrocket and increasing the banking group’s market value.
Otedola’s influence extends beyond the stock market and has a substantial positive impact on FBN Holdings’ financial success. The group’s profits increased from N136.31 billion ($114.14 billion) in 2022 to N310.01 billion ($260 million) in 2023.
The outstanding financial figures have also confirmed the group’s retained earnings of N675.12 billion ($565.3 million), establishing FBN Holdings as one of Nigeria’s most successful corporations.
Otedola’s recent appointment as chairman of FBN Holdings adds to the revolutionary storyline. Following his original appointment as a non-executive director eight months earlier, Otedola’s promotion to chairman was announced at a board meeting on January 31, 2024.
He will succeed current chairman Alhaji Ahmad Abdullahi, bringing considerable experience and a track record of revolutionary leadership in a variety of industries. This development is expected to help determine FBN Holdings’ future trajectory.
