Home » Femi Otedola boosts stake in First Bank parent with new shares worth $7.7 million

Femi Otedola boosts stake in First Bank parent with new shares worth $7.7 million

Femi Otedola increases stake in First Bank's parent company with shares worth $7.7 million in Q1 2024

by Omokolade Ajayi
Femi Otedola

Key Points:

  • Femi Otedola increased his ownership in FBN Holdings to 7.01%, acquiring additional shares worth $7.7 million in Q1 2024.
  • The financial group reported a 315% surge in net profit for Q1 2024, driven by rising interest and fee income.
  • Geregu Power signed an MOU with Siemens Energy to triple its generation capacity, solidifying Otedola’s influence in Nigeria’s energy sector.

Nigerian billionaire Femi Otedola has strengthened his position in First Bank of Nigeria Holdings Plc (FBN Holdings), acquiring additional shares worth over $7.7 million in the first quarter of 2024.

Otedola, chairman of FBN Holdings, the parent company of Nigeria’s oldest commercial bank, First Bank of Nigeria Limited, and Geregu Power Plc, a leading power generation company, now holds a 7.01 percent stake in the financial services group.

According to recently published financial results, Otedola purchased 517,939,764 shares valued at N11.65 billion ($7.77 million), increasing his holdings from 1,999,342,376 shares (5.57 percent) as of December 31, 2023, to 2,517,282,140 shares (7.01 percent) as of March 31, 2024. The total value of his stake now stands at N56.7 billion ($37.8 million).

Significant growth in FBN Holdings’ financials 

FBN Holdings reported a net profit of N208.2 billion ($149.7 million) in Q1 2024, a 315.8 percent increase from N50.1 billion ($36 million) in the same period last year.

This growth was driven by a surge in interest income, which rose to N454.98 billion ($326.5 million) from N179.6 billion ($128.9 million). Fee and commission income also increased significantly, from N42.87 billion ($30.8 million) to N63.6 billion ($45.7 million).

Additionally, FBN Holdings gained N288.94 billion ($207.73 million) from financial instruments in Q1 2024. The group’s total assets grew to N21.58 trillion ($15.51 billion) by March 31, 2024, up from N16.94 trillion ($12.17 billion) at the end of 2023. Retained earnings also increased from N588.9 billion ($423.37 million) to N794.4 billion ($571.1 million).

Geregu Power expands with Siemens Energy partnership

On the energy front, Geregu Power Plc, under Otedola’s leadership, continues to achieve significant milestones. Last week, Geregu Power signed a Memorandum of Understanding (MOU) with Germany-based Siemens Energy to expand its power generation capacity.

The agreement, signed in Berlin on May 29, 2024, aims to triple Geregu’s capacity from 435 megawatts (MW) to 1,200 MW. The partnership will enhance sustainable, resilient, and efficient power generation at Geregu’s plant, extending asset lifespan and supporting the growth of Nigeria’s Electricity Supply Industry (NESI).

Femi Otedola’s leadership fuels growth

Geregu Power’s revenue surpassed $90 million in 2023 and continued its success in the first quarter of 2024 as its revenue for the three-month period, from January to March, increased to N50.43 billion ($40.38 million), marking a 254.38 percent year-over-year growth.

Otedola’s strategic acquisitions and leadership continue to drive impressive growth and expansion for both FBN Holdings and Geregu Power, solidifying his influence in Nigeria’s financial and energy sectors.

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