Nigerian billionaire Femi Otedola’s stake in FBN Holdings tops $84 million after latest purchase

Omokolade Ajayi -
Key Points
  • Femi Otedola increases his stake in FBN Holdings to 13.16%, solidifying his position as the largest shareholder.
  • Otedola's $28.3 million investment raises the market value of his holdings in FBN Holdings to $84.2 million.
  • FBN Holdings posts a 93.7% profit surge in H1 2024, reflecting Otedola's influential leadership and strategic direction.

Nigerian billionaire Femi Otedola, one of Africa's most liquid billionaires, has strengthened his influence in Nigeria's banking sector by spending $28.3 million to boost his stake in FBN Holdings Plc. Otedola’s recent acquisition solidifies his position as the largest shareholder in the parent company of First Bank of Nigeria, raising the market value of his stake to $84.2 million.

According to trading data obtained by Billionaires.Africa, Otedola, who chairs both FBN Holdings and Geregu Power, now owns 13.16 percent of FBN Holdings, up from 8.67 percent. This was facilitated through the purchase of an additional 4.49-percent stake, for a total consideration of N47.59 billion ($28.3 million). Otedola's latest acquisition bolsters his profile as the investor with the third most valuable portfolio on the Nigerian Exchange (NGX).

Femi Otedola boosts stake in FBN Holdings

FBN Holdings, a prominent player in Nigeria’s financial services sector, has a storied history as the parent company of First Bank of Nigeria, the country’s oldest commercial bank. Established 130 years ago, the bank has been at the forefront of financial inclusion and development across West Africa, maintaining its stature in the region's banking landscape.

Otedola’s stake-building in FBN Holdings began in October 2021, when he first acquired a 5.07-percent interest, equivalent to 1.82 billion shares, for N22.27 billion. By December 2021, his holdings had increased to 7.57 percent before a series of adjustments saw his stake decline to 5.24 percent by the third quarter of 2022. However, by the end of 2023, he had rebounded to 5.57 percent.

Otedola's buying spree intensifies in Q3

This steady accumulation reflects Otedola’s strategic approach, which accelerated in response to a competing acquisition by fellow Nigerian businessman Oba Otudeko. Through his investment vehicle, Barbican Capital, Otudeko increased his stake to 8.67 percent in 2023.

In 2024, Otedola countered by launching an aggressive buying spree, spending an estimated N95.8 billion ($57.6 million) to further entrench his position as the top shareholder. His purchasing activity gained momentum throughout the year, with the latest buy in Q3 reflecting his determination to solidify his grip on one of Nigeria’s largest financial institutions.

FBN Holdings thrives with Otedola’s leadership

Beyond his stake-building, Otedola’s influence at FBN Holdings is evident in the group’s recent financial performance. Under his leadership, FBN Holdings reported a 93.7-percent profit surge in H1 2024, with earnings reaching N360.27 billion ($217 million), up from N186.02 billion ($112.2 million) in the same period of 2023. 

Femi Otedola’s role as both major shareholder and chairman of FBN Holdings strengthens his influence on the bank’s strategic direction. His latest acquisition cements his control over Nigeria’s oldest financial institution.