Femi Otedola is making one of the biggest personal bets in Nigerian corporate history, and he says he is nowhere near finished.
The billionaire businessman recently revealed that by the time FirstHoldCo completes its next capital raise, his total investment in the company will exceed ₦320 billion. What makes the announcement even more striking is that Otedola says every naira is coming directly from his own funds.
“By the time we conclude the next capital raise, I would have personally invested over N320 billion, all in cash, without borrowing a single Naira. I am very positive that we will raise the required capital well ahead of the Central Bank’s deadline… that, I can assure you.”
The statement offers a glimpse into the scale of his commitment to First Bank’s future. But the bigger story is what he believes this investment will achieve over the next few years.
A Massive Vote of Confidence
On May 13, 2026, Otedola acquired additional FirstHoldCo shares worth more than ₦43 billion through Calvados Global Services Limited. The transaction ranks among the largest single-day investments ever made by an individual on the Nigerian Exchange.
Following the acquisition, his ownership stake increased to 19.35 percent, representing 8.6 billion shares out of the company’s 44.45 billion outstanding shares. That position makes him the largest individual shareholder in Nigeria’s oldest commercial bank.
For market observers, the move sent a clear message. Otedola is not reducing his exposure after recent gains. Instead, he continues increasing his investment.
Why He Keeps Buying More Shares
Many investors purchase shares expecting short-term gains. Otedola’s comments suggest he is focused on something much larger.
“And this doesn’t stop here. I am willing to invest even more as we prepare for our next round of capital raise, following the resounding success and oversubscription of our recent offer.”
The statement indicates that he views the bank’s transformation as an ongoing process rather than a completed project.
At the company’s 14th Annual General Meeting held on May 29, 2026, shareholders approved a ₦253 billion capital raise. The approval moves FirstHoldCo closer to one of the most ambitious targets in Nigerian banking today, building a paid-up capital base of ₦1 trillion.
The Bigger Goal Behind the Money
For Otedola, the capital raise is not simply about satisfying regulatory requirements.
He has repeatedly argued that stronger capitalization will position First Bank to compete more aggressively across Africa and eventually challenge larger regional rivals.
A larger capital base gives banks the ability to finance bigger transactions, participate in larger syndicated loans, support major corporate clients, and strengthen their balance sheets.
For decades, some African banks have enjoyed advantages in size and capital strength. Otedola believes First Bank can close that gap.
His long-term target is to help transform First Bank into one of Africa’s leading financial institutions within the next four years.
The Turnaround Is Already Showing Results
The financial performance of FirstHoldCo suggests that significant progress is already taking place.
The company reported a profit before tax of ₦321 billion in the first quarter of 2026. That represents a 72 percent increase from the ₦186.47 billion recorded during the same period in 2025.
The result places FirstHoldCo among Nigeria’s strongest-performing banks and second only to Zenith Bank in terms of quarterly profit performance.
Even more notable is the company’s return on equity of 31.6 percent during the quarter, the highest among the FUGAZ banking group.
For investors, return on equity is one of the most important indicators of management effectiveness because it measures how efficiently shareholder funds are being used to generate profits.
Cleaning Up Years of Problems
The recent performance becomes more impressive when viewed against the bank’s recent history.
When Otedola became chairman in January 2024, First Bank was still dealing with the consequences of years of unresolved non-performing loans and balance sheet challenges.
Rather than delaying difficult decisions, management chose to tackle the problems directly.
In 2025, the bank absorbed approximately ₦830 billion in impairment charges to address legacy bad loans. The move was painful in the short term but designed to remove long-standing issues that had weighed on the institution for years.
By cleaning up those assets, the bank created room for stronger financial performance and a healthier balance sheet.
Many analysts now see the strong 2026 results as evidence that the strategy is beginning to work.
Otedola’s Vision as an Activist Shareholder
Otedola has described himself as an “activist shareholder.”
According to him, his role goes beyond simply owning shares.
He says his mission is to eliminate waste, strengthen governance, protect depositors’ funds, deliver attractive returns for shareholders, and create positive impacts on society and the environment.
Those priorities reflect a broader vision for the institution.
Instead of focusing solely on growth, he has emphasized accountability, operational discipline, and long-term sustainability.
For a bank with more than a century of history, those factors are often as important as financial performance.
What the ₦1 Trillion Capital Target Could Mean
The push toward a ₦1 trillion paid-up capital base could reshape the bank’s future.
Greater capital strength would allow First Bank to pursue larger financing opportunities, support major infrastructure projects, expand lending activities, and compete more effectively with leading African and international financial institutions.
It would also improve confidence among investors, customers, and corporate clients.
Most importantly, it would provide the financial firepower needed to execute an ambitious growth strategy across multiple markets.
This is why Otedola continues emphasizing capital raises and increasing his own investment.
He is not simply preparing the bank to meet a regulatory deadline. He is preparing it for a different level of competition.
Why Investors Are Paying Attention
Large investors often reveal their convictions through their actions rather than their words.
Otedola’s consistent purchases suggest he believes the transformation story is still in its early stages.
Since becoming chairman in January 2024, he has repeatedly increased his stake while publicly supporting the bank’s recapitalization efforts.
His actions indicate confidence that the strongest chapter in First Bank’s turnaround story may still lie ahead.
For shareholders, that level of commitment is difficult to ignore.
Final Thoughts
Femi Otedola’s planned ₦320 billion investment in FirstHoldCo is about far more than increasing ownership.
It represents a long-term strategy aimed at rebuilding one of Nigeria’s most historic financial institutions into a stronger, more profitable, and more competitive bank.
The recent surge in profitability, the cleanup of legacy bad loans, the approved ₦253 billion capital raise, and the pursuit of a ₦1 trillion paid-up capital base all point toward the same objective.
Otedola says he wants First Bank to become one of Africa’s leading banks within four years.
Whether that goal is achieved remains to be seen. What is already clear is that he is backing that vision with an extraordinary amount of personal capital.
FAQ
How much has Femi Otedola invested in FirstHoldCo?
Otedola says his total investment will exceed ₦320 billion once the company’s next capital raise is completed.
What percentage of FirstHoldCo does Otedola own?
Following his latest share acquisition, his stake stands at approximately 19.35 percent, making him the largest individual shareholder.
Why is FirstHoldCo raising more capital?
The company is strengthening its capital base to meet regulatory requirements and support future expansion plans.
What was FirstHoldCo’s profit before tax in Q1 2026?
The company reported ₦321 billion in profit before tax, up 72 percent from the same period in 2025.
What is Otedola’s long-term goal for First Bank?
According to his public statements, he aims to help transform First Bank into one of Africa’s leading financial institutions within the next four years.
