Femi Otedola, a prominent Nigerian businessman and chairman of First Holdco Plc, has made a substantial personal investment of ₦320 billion in First Bank of Nigeria, a move he attributes to the positive impact of the Federal Government’s economic reforms and the Central Bank of Nigeria’s policy adjustments. Otedola’s investment underscores a renewed confidence in the Nigerian financial sector, spurred by the decisive actions of President Bola Ahmed Tinubu and CBN Governor Olayemi Cardoso. This significant capital injection is expected to further solidify First Bank’s position as a leading financial institution and contribute to the overall stability and growth of the Nigerian economy.
Otedola’s confidence stems from the sweeping economic reforms implemented by President Tinubu, which, while challenging, are viewed as necessary steps towards long-term economic stability and growth. He also lauded the CBN Governor, Olayemi Cardoso, for his courageous and pragmatic policy reforms, which have played a pivotal role in restoring credibility to the financial system. These reforms have created a more attractive investment environment, encouraging both domestic and foreign investors to commit long-term capital to Nigeria. Otedola’s massive investment serves as a testament to the effectiveness of these reforms and signals a growing belief in the potential of the Nigerian economy.
Otedola’s investment journey with First Bank commenced in 2021 after his retirement from corporate life, following the sale of Forte Oil Plc in 2019. He began by acquiring a significant stake in the bank, driven by a vision to reposition First Bank as a modern, well-governed, and highly profitable institution. This initial investment was followed by further acquisitions, culminating in his current leadership role and a total personal investment of ₦320 billion. This substantial commitment, made entirely in cash without any borrowing, demonstrates Otedola’s strong belief in the bank’s potential and his long-term vision for its future. His strategy emphasizes eliminating excesses and wastage, prioritizing the protection of depositors’ funds, and delivering strong returns to shareholders, all while contributing meaningfully to society and the environment.
The successful conclusion of the bank’s first phase of a ₦150 billion rights issue in March, which was oversubscribed by 25 percent, reaching ₦187.6 billion, further reinforces the positive sentiment surrounding First Bank. This success has paved the way for a second capital raising phase, targeting approximately ₦350 billion through private placement. Otedola expressed confidence in exceeding this target, highlighting the renewed faith in the financial sector fostered by the CBN’s reforms. This additional capital will bolster the bank’s financial strength and enable it to pursue strategic growth initiatives, ultimately benefiting both shareholders and customers.
Otedola’s investment strategy is rooted in a commitment to responsible corporate governance and sustainable growth. He emphasizes eliminating wasteful spending, such as on private jets and unchecked executive luxuries, and prioritizes the protection of depositors’ funds. He envisions First Bank as a modern and efficient institution, delivering strong returns to shareholders while contributing positively to society and the environment. This approach reflects a growing trend towards ethical and sustainable investing, where financial returns are balanced with social and environmental considerations.
As an activist shareholder, Otedola’s mandate is focused on optimizing the bank’s performance and maximizing value for all stakeholders. He acknowledges the dedication of the bank’s board and management, as well as the loyalty of its over 40 million customers, recognizing their vital role in the bank’s continued success. Looking ahead, Otedola expresses unwavering confidence in the bank’s ability to raise the required capital well ahead of the Central Bank’s deadline. This assurance reflects his optimistic outlook for First Bank’s future and his belief that the bank is well-positioned for continued growth and prosperity under his leadership and the current positive economic climate.
