By Abiola Olawale
Billionaire investor and Chairman of First Bank Holdings Plc, Femi Otedola has reportedly solidified his dominance over First Bank of Nigeria Holdings Plc (FirstHoldco) by acquiring a 40% stake in a N324.47 billion deal.
Reports emerging on Thursday revealed that the transaction, reportedly executed through a series of off-market block trades on the Nigerian Exchange Limited (NGX), has forced the exit of key shareholders like Chief Oba Otudeko, former Chairman of Honeywell Group and First Bank of Nigeria Holdings(FBN), and Oye Hassan-Odukale, another long-term shareholder of the bank.
Otedola, already the largest single shareholder with a 15% stake, was said to have bolstered his position by purchasing additional 10.47 billion shares at N31 per unit on July 15, 2025.
This reported acquisition has elevated his total shareholding to 40%, cementing his full authority over FirstHoldco.
The New Diplomat checks show that the reported deal followed months of intense negotiations and corporate maneuvering, with Otudeko, aged 82.
An insider source who spoke with The New Diplomat revealed that during the negotiations, Otudeko reportedly faced a choice between a negotiated payout or potential legal repercussions tied to past corporate governance issues.
It would be recalled that the Economic and Financial Crimes Commission (EFCC) had recently filed a lawsuit against Otudeko and Bisi Onasanya, a former Managing Director of First Bank, and others on charges of an alleged N12.3 billion fraud.
The anti-graft agency had accused them of fraudulently obtaining credit facilities from First Bank under false pretenses between 2013 and 2014.
These charges include allegations of obtaining large sums in various tranches totaling N12.3 billion through V-Tech Dynamic Links Limited and Stallion Nigeria Limited, as well as presenting alleged forged documents to misrepresent transactions.
The New Diplomat’s checks reveal that the leadership of the First Bank reportedly leveraged on this lawsuit to negotiate deals, which meant the trades were arranged privately between parties and then reported to the Stock Exchange, not through the regular buy/sell orders seen during daily trading sessions.
Checks also revealed that 17 separate deals took place involving First Securities Ltd as the buyer with CardinalStone Securities Ltd, Meristem Stockbrokers Ltd, Renaissance Capital (Rencap) Securities Ltd, Regency Asset Management Ltd, United Capital Securities Ltd, and Stanbic IBTC Stockbrokers Ltd as the seller of First Holdco’s stock.
It was learnt that First Securities Ltd also acted as seller in some deals, indicating a portfolio reshuffling or inter-account transfer.
The source added that the leadership of the First Bank believes that the exit of Otudeko and Hassan-Odukale will resolve years-long power struggle that had destabilized the financial institution and rendered it vulnerable to media attacks.
The New Diplomat reports also that the tussle for FirstHoldco’s control has been a high-stake game of intrigues.
Otudeko, who led the bank for nearly a decade until his ousting in 2021 over alleged governance breaches, had been locked in a fierce rivalry with Otedola.
Otedola entered the fray in 2022 with a 5.07% stake, rapidly increasing it to 15% to become the top shareholder.
Meanwhile, Otudeko’s Barbican Capital Limited held an 8.65% stake, and Hassan-Odukale’s bloc was another major player.
Tensions escalated earlier this year when Otudeko demanded Otedola’s removal as chairman, only to face a counteroffensive.
