Femi Otedola has increased his stake in First HoldCo Plc to nearly 20 percent following a major share acquisition that further cements his position as one of the most influential individual investors in Nigeria’s banking industry.
The latest acquisition has also revived discussions among analysts and market participants about the level of influence a single shareholder should wield in a systemically important financial institution.
Market disclosures show that Otedola, through affiliated entities, now controls approximately 19.36 percent of First HoldCo, the parent company of First Bank of Nigeria.
On May 13, 2026, Otedola, through Calvados Global Services Limited, acquired 549,535,653 ordinary shares of First HoldCo at N79 per share during a single trading session on the Nigerian Exchange (NGX).
The transaction, valued at approximately N43.41 billion, ranks among the largest single-day equity investments by an individual investor in the history of the Nigerian stock market.
The purchase increased his combined direct and indirect holdings from 8.055 billion shares, representing 18.12 percent ownership, to approximately 8.604 billion shares, equivalent to 19.36 percent of the company’s issued share capital.
Despite the increase, market data suggests that RC Investment Management Limited still controls a larger shareholding block in the financial institution.
Corporate governance experts say that although Otedola remains far from majority ownership, a shareholder controlling close to one-fifth of a major bank can still exert significant strategic influence.
The Chief Executive Officer of Cowry Asset Management Limited, Johnson Chukwu, said influential core investors are not necessarily a threat to the stability or governance of banks if proper corporate governance standards are maintained.
“In almost all the major banks, we have those use cases replicated, and it has not in any way jeopardised efficient operations,” he said.
According to Chukwu, the key issue is not simply the size of a shareholder’s stake but whether ownership and leadership structures comply with sound governance principles.
“What matters is that you have leadership and ownership that want to adhere to good corporate governance standards and that are not overbearing or unduly negatively influential,” he said.
“If they are positively influential, then it even becomes beneficial to the bank,” he added.
Chukwu also dismissed concerns that a near-20 percent holding automatically translates into operational control of a bank, noting that minority shareholders, independent directors, and broader board governance structures remain important balancing mechanisms.
“There is still 80 percent shareholding outside that structure, and there are minority interests. The constitution of the board also includes independent directors,” he said.
Chairman of Highcap Securities, David Adonri, also stated that Otedola’s increasing stake in First HoldCo has so far strengthened market confidence in the institution.
According to him, the businessman’s continued investment has contributed to positive investor sentiment and rising shareholder value.
“He continues to inject more capital and confidence into the institution through his increasing stake. The market has responded positively, and shareholders have benefited from the appreciation in the share price,” Adonri said.
He explained that many investors focus primarily on returns, earnings performance, and dividend prospects rather than ownership concentration issues.
“For many investors, what matters is whether the company is creating value. Those who remain invested benefit from the upside in the stock, while those who decide to exit are also able to realise gains,” he added.
Adonri, however, acknowledged that some analysts may still view rising ownership concentration in a systemically important bank as a potential governance concern.
He noted that such concerns are common whenever a dominant shareholder begins to emerge within a regulated financial institution.
According to him, retail investors in the Nigerian market often respond more to market momentum and earnings growth than to deeper governance debates.
“The average retail investor has the herd mentality. They tend to follow market direction and sentiment. If they see strong performance and sustained value creation, they are likely to remain invested regardless of who the dominant shareholder is,” he said.
Ownership concentration has historically been more common in Nigeria’s manufacturing and industrial sectors, where founders and promoter groups retain significant control over company strategy and governance.
For example, Aliko Dangote maintains a dominant ownership position in Dangote Cement Plc through related entities, while founder-linked holdings also dominate BUA Cement Plc and BUA Foods Plc associated with Abdul Samad Rabiu.
By contrast, major Nigerian banks such as Zenith Bank Plc, Guaranty Trust Holding Company Plc, Access Holdings Plc, and United Bank for Africa Plc have traditionally maintained more diversified shareholder structures due to stricter regulatory oversight and the systemic importance of the banking industry.
