Nigerian billionaire Femi Otedola, Samuel Babatunde Sule’s First HoldCo stake nears $700 million

Nigerian billionaire Femi Otedola and investor Samuel Babatunde Sule have seen the value of their combined holdings in First HoldCo Plc climb close to $700 million, as a sustained rally in banking stocks boosts investor wealth on the Nigerian Exchange (NGX).

The surge reflects renewed confidence in Nigeria’s financial sector and strengthens Otedola’s position as a central figure in the lender’s ongoing turnaround strategy.

Stake value climbs on market rally

Otedola, who became chairman in 2024, holds a combined direct and indirect stake of 7.31% and 10.81%, respectively. These holdings, equivalent to more than 8.05 billion shares, are currently valued at about N248 billion ($179 million), making him the second-largest shareholder.

In parallel, a 23.47% stake linked to RC Investment, linked to Babatunde Samuel Sule, is valued at N531.6 billion ($383.7 million), consolidating control among key insiders. Together, these positions amount to 18.49 billion shares, representing a 41.59% stake in the non-operating holding company. RC Investments Management Limited is a Nigerian special purpose vehicle (SPV) incorporated in 2023, linked to Samuel Babatunde Sule, the current CEO of Renaissance Capital Africa.

Recent gains push valuation higher

Over the past 84 days, the combined value of these holdings has increased by nearly N39.75 billion ($28.68 million), bringing the total valuation close to the $700 million mark.

The rally follows increased market activity in banking stocks, driven by improving capital positions and stronger investor sentiment toward Nigeria’s financial sector.

Otedola expands influence post-Geregu exit
The gains come months after Otedola exited Geregu Power Plc in a $750 million deal, divesting a 77% stake to MA’AM Energy.

He has since increased his exposure to First HoldCo by acquiring 369.9 million shares in December 2025 at N40.16 per share, significantly raising his total holdings.

FBN Holdings’ profit pressured despite growth
Despite the share price rally, FBN Holdings reported a sharp decline in profit to N44.98 billion ($32.46 million) in 2025, down from N677 billion in 2024.

The drop was largely driven by higher impairment charges and costs tied to discontinued operations. However, total assets rose to N27.1 trillion, up from N26.5 trillion a year earlier, signaling continued balance sheet expansion.

Turnaround efforts restore investor confidence

First Bank, Nigeria’s oldest lender, has faced years of governance and credit risk challenges. Under Otedola’s leadership, reforms aimed at strengthening capital buffers, tightening risk controls, and improving earnings quality are beginning to gain traction.

The recent share rally suggests investors are responding positively, marking a potential turning point for one of Nigeria’s most systemically important financial institutions. (Shore Africa)