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Femi Otedola Invests $70 Million in First Bank Over 3 Years

Nigerian billionaire Femi Otedola has spent $70 million over the last three years acquiring shares in First Bank of Nigeria Holdings Plc (FBN Holdings), the parent company of Nigeria’s oldest commercial bank, First Bank of Nigeria Limited.

Otedola, chairman of FBN Holdings and Geregu Power Plc, has invested a total of N105 billion ($70 million) in FBN Holdings stock. With a fortune of $1.5 billion, Otedola is one of Africa’s wealthiest individuals and Nigeria’s fourth-richest man.

Otedola recently purchased 797,946,415 shares of FBN Holdings for N17.22 billion ($11.3 million) at an average price of N21.58 ($0.014) per share. This represents a 2.22 percent ownership. This acquisition increased his total interest to 11.64 percent, firmly cementing his position as the largest stakeholder in the premier financial services organization.

In October 2021, Otedola bought a 5.07 percent stake (1,818,551,625 shares) in FBN Holdings for N22.27 billion, making him the company’s largest stakeholder. He grew his interest to 7.57 percent in December 2021, lowering it to 5.24 percent by the third quarter of 2022, then increasing it back to 5.57 percent as of December 31, 2023.

Obafoluke Otudeko boosted his shareholding in FBN Holdings to 8.67 percent via his special purpose company Barbican Capital Limited in 2023. In response, Otedola has aggressively purchased shares in 2024, spending an estimated N47.82 billion ($31.2 million) since the beginning of the year to reclaim his position as the top shareholder.

Otedola’s buying spree began in Q1 2024, with the purchase of 517,939,764 shares for N11.65 billion ($7.77 million), bringing his position to 7.01 percent by March 31. Last week, he bought 863,180,810 shares worth N18.95 billion ($12.56 million). This brought his total ownership to 9.42%, exceeding Otudeko’s stake.

FBN Holdings, one of Nigeria’s most valued financial services organizations, has a rich history. Its subsidiary, First Bank of Nigeria Limited, is the country’s oldest commercial bank, with a 130-year history of providing development services and spearheading financial inclusion efforts in West Africa.

Otedola’s influence extends beyond ownership; as chairman of FBN Holdings, he has had a substantial impact on the group’s future. In the first quarter of 2024, under his leadership, FBN Holdings reported a net profit of N208.2 billion ($149.7 million), a 315.8 percent rise from N50.1 billion ($36 million) in the same period prior year.

Under Otedola’s leadership, FBN Holdings’ total assets increased to N21.58 trillion ($15.51 billion) by March 31, 2024, from N16.94 trillion ($12.17 billion) at the end of 2023, indicating strong financial health.

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