Otedola Links First Bank Investment to FG Reforms, ₦320 billion

By Oriakhi loveth Omosefe

Otedola Links First Bank Investment to FG Reforms, ₦320 billion

LAGOS — Chairman of FBN Holdings Plc, Femi Otedola, has linked his personal investment of over ₦320 billion in First Bank to ongoing economic reforms,

introduced by the Federal Government and the policy direction of the Central Bank of Nigeria (CBN).

Speaking at the 13th Annual General Meeting (AGM) of FBN Holdings on Thursday,

Otedola said the reforms implemented by President Bola Ahmed Tinubu’s administration,

as well as recent monetary measures by the CBN, have created a favourable environment for long-term investors.

“This journey aligns closely with the bold and visionary leadership of President Bola Ahmed Tinubu,

who deserves credit for championing the tough but necessary reforms in our economy,” Otedola told shareholders at the AGM.

The billionaire businessman praised the Governor of the Central Bank, Olayemi Cardoso,

for initiating reforms he described as “courageous and pragmatic,” noting that they have helped restore investor confidence in the financial sector.

“I commend the Governor of the Central Bank of Nigeria, Mr. Yemi Cardoso, for his courageous and pragmatic policy reforms.

His actions are restoring credibility to the financial system and giving investors like me the confidence to commit long-term capital to this country,” he said.

Otedola, who first acquired a stake in First Bank in 2021, disclosed that his total investment in the bank would exceed ₦320 billion upon the conclusion of the institution’s ongoing capital-raising exercise.

He emphasised that the entire amount was funded without loans.

“By the time we conclude the next phase of capital raising,

I will have personally invested over ₦320 billion — all in cash, without borrowing a single naira,” he said.

In March, FBN Holdings concluded the first phase of a ₦150 billion rights issue,

which attracted subscriptions totalling ₦187.6 billion—exceeding its target by over 25 per cent.

The bank has now announced plans for a second round of capital raising through private placement, targeting an additional ₦350 billion.

Otedola explained that his vision for First Bank began after retiring from corporate life in 2019,

following the sale of his majority stake in Forte Oil Plc.

He described his decision to invest in First Bank as a “calculated and strategic move” aimed at transforming the institution into a more modern, efficient, and profitable bank.

“The intentional drive to rebuild and reposition First Bank was strengthened by acquiring additional shares and assuming a leadership role to consolidate these objectives,” he said.

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According to him, the decision was not speculative.

“This was not a gamble; it was a calculated, strategic move to transform First Bank into a modern, well-governed, and highly profitable institution,” he added.

At the AGM, Otedola also expressed appreciation to the bank’s board, management, and its customer base of over 40 million,

noting that their loyalty has been critical to the institution’s longevity and relevance.

“We have remained relevant and impactful for over 130 years thanks to the unwavering loyalty of our more than 40 million customers, whom I especially appreciate,” he said.

Describing himself as an “activist shareholder,” Otedola outlined his priorities,

which include eliminating wasteful spending, protecting depositors’ funds, and ensuring consistent shareholder returns.

“My mandate is clear: eliminate excesses and wastage—no splurging on private jets or unchecked executive luxuries—protect depositors’ funds,

deliver strong returns to shareholders, and make meaningful contributions to society and the environment,” he stated.

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He also expressed confidence that the bank would meet its capital-raising target ahead of the regulatory deadline set by the Central Bank.

“I am confident we will raise the required capital well ahead of the Central Bank’s deadline… that, I can assure you,” he said.

With his deepening involvement in First Bank, Otedola’s growing stake continues to reshape the ownership and leadership structure of one of Nigeria’s oldest financial institutions.

He maintains that his investment is a long-term commitment grounded in confidence in Nigeria’s economic future.

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