Nigerian billionaire Femi Otedola, one of Africa’s most liquid billionaires, has increased his influence in Nigeria’s banking sector by investing $28.3 million in FBN Holdings Plc. Otedola’s recent acquisition secures his position as the top shareholder in First Bank of Nigeria’s parent business, bringing his holding to $84.2 million in market value.
Otedola, the chairman of both FBN Holdings and Geregu Power, now owns 13.16 percent of FBN Holdings, up from 8.67 percent. This was accomplished by purchasing an extra 4.49 percent interest for a cost of N47.59 billion ($28.3 million). Otedola’s most recent acquisition raises his status as the investor with the third most valuable portfolio on the Nigerian Exchange (NGX).
FBN Holdings, a major player in Nigeria’s financial services industry, has a long history as the parent company of First Bank of Nigeria, the country’s oldest bank. Established 130 years ago, the bank has been at the vanguard of financial inclusion and development in West Africa, retaining its position in the region’s banking environment.
In October 2021, Otedola acquired a 5.07 percent stake in FBN Holdings for N22.27 billion, which equates to 1.82 billion shares. By December 2021, his shares had grown to 7.57 percent, but a series of modifications reduced his interest to 5.24 percent by the third quarter of 2022. However, by the end of 2023, he had recovered to 5.57%.
This continuous accumulation illustrates Otedola’s strategic approach, which intensified in reaction to a competing acquisition by fellow Nigerian billionaire Oba Otudeko. Otudeko expanded his position in Barbican Capital to 8.67 percent by 2023.
In 2024, Otedola responded by embarking on an aggressive buying binge, spending an estimated N95.8 billion ($57.6 million) to solidify his position as the top shareholder. His purchasing activities increased throughout the year, with the most recent purchase in Q3 demonstrating his determination to strengthen his hold on one of Nigeria’s top financial institutions.
Beyond stake-building, Otedola’s impact at FBN Holdings is reflected in the company’s recent financial performance. Under his leadership, FBN Holdings recorded a 93.7 percent profit jump in H1 2024, with earnings reaching N360.27 billion ($217 million), up from N186.02 billion ($112.2 million) in the same period in 2023.
Femi Otedola’s position as a major stakeholder and chairman of FBN Holdings increases his influence over the bank’s strategic direction. His recent acquisition solidifies his influence over Nigeria’s oldest banking institution.
