The prolonged power tussle for the control of Nigeria’s premier financial institution, First Holdco Plc, the parent company of First Bank of Nigeria, may be close to a final resolution, with major stakeholders Oba Otudeko and the Leadway Assurance/Olukayode Odukale bloc close to exiting their interests in the group.
Sources close to the deal disclosed that both parties have reached an agreement to sell their stakes to billionaire businessman Femi Otedola at a price of N31 per share.
The transaction, once concluded, will firmly consolidate Otedola’s hold in FirstBank, ending a long period of intense boardroom rivalry that had, at times point, threatened the stability of the oldest Nigerian bank and one of the big five.
The power struggle has spanned several years, with three prominent business figures – Otudeko, Odukale (via Leadway Assurance) and Otedola struggling to gain significant influence in the institution.
This internal battle played out through share acquisitions, boardroom intrigues, and regulatory scrutiny, culminating in regulatory interventions by the Central Bank of Nigeria (CBN).
Otedola’s steady accumulation of shares since 2021 signalled his long-term ambition to take control of the bank. His latest move will effectively consolidate that ambition, positioning him as the dominant figure in FirstBank’s future, a role comparable to the leadership roles played by Jim Ovia at Zenith Bank and Tony Elumelu at United Bank for Africa (UBA).
Analysts said the development is expected to bring much-needed stability and strategic coherence to FirstBank, ending years of fragmentation of boardroom struggle.
They believe the resolution will enhance the bank’s ability to make bold, long-term business decisions without the encumbrances of internal conflict.
The billionaire made headlines last July after he acquired 797,946,415 of the bank shares at an average price of N21.58 per share, a transaction valued at N17.2 billion.
The acquisition raised his stake to 11.64 per cent, making him the first shareholder to hold over 10 per cent equity in the bank known for highly diffused ownership.
He followed up with an additional 534,094,407 share purchase at N30 per share, bringing his total shareholding to 13.16 per cent. Earlier in the year, Otedola spent N18.9 billion acquiring shares of the financial giant to hold 9.41 per cent.
He joined the board as a non-executive director in August 2023 and emerged as Chairman of the holding company barely six months later. Analysts have credited him for the recent aggressive reinvention of the corporate toga of the bank, including the decision to relocate its headquarters to the Eko Atlantic City.
Otedola’s rising interest in the financial institution is underscored by its decision to pay the other major shareholders over a five per cent premium to buy them out.
The bank has outperformed its peers in recent times with a 19 per cent month-on-month gain.
(Guardian)
