Nigerian billionaire Femi Otedola reaffirms commitment to First Bank, vows to protect its interests

Omokolade Ajayi -
Key Points
  • Femi Otedola defends First Bank’s integrity amid allegations from Nduka Obaigbena regarding a $230 million loan misuse tied to political and personal expenses.
  • The Federal High Court’s Mareva injunction freezes assets linked to Obaigbena over a $718 million debt owed to First Bank.
  • Under Otedola’s leadership, FBN Holdings’ total assets surged 94 percent, while Geregu Power doubled profits, highlighting his strategic impact across sectors.

Billionaire businessman Femi Otedola, chairman of Geregu Power and FBN Holdings—the parent company of Nigeria's oldest commercial bank, First Bank of Nigeria Limited—has reiterated his commitment to protecting the integrity of the institution amid recent allegations made by Nduka Obaigbena, founder of Arise News and chairman of THISDAY Media Group. In a statement, Otedola addressed accusations linked to a loan involving General Hydrocarbons Limited (GHL), the operator of OML 120, a key oil block in Nigeria’s Deep Offshore sector.

The allegations, published by THISDAY and attributed to Obaigbena, accuse Otedola of improper involvement in the matter, now part of a broader financial dispute. Otedola, however, dismissed the charges as "baseless" and accused Obaigbena of using his media influence to damage his reputation. "My attention has been drawn to an article published by ThisDay, clearly instigated by Mr. Nduka Obaigbena, filled with baseless allegations aimed at smearing my reputation," he said.

Otedola protects First Bank’s interests

At the heart of the conflict is a $230 million loan obtained by Obaigbena’s General Hydrocarbons, allegedly facilitated by former Central Bank Governor Godwin Emefiele. Otedola claims the loan was misused, diverted for personal expenses and political purposes, including funding Emefiele's presidential campaign and lavish spending on luxury properties and jet rentals. "Nduka’s profligacy is well known," Otedola stated, "as is his penchant for using media blackmail to silence those who hold him accountable."

This clash escalated when the Federal High Court in Lagos recently issued a Mareva injunction, freezing assets linked to Obaigbena and his family as part of a debt recovery process initiated by First Bank of Nigeria, a subsidiary of FBN Holdings. The court order, issued on Dec. 30, 2024, followed allegations that Obaigbena had failed to repay a $718 million debt owed to the bank. The injunction has frozen $225 million in accounts tied to the Obaigbenas and halted financial transactions involving their businesses.

In response to the financial dispute, Otedola underscored his commitment to safeguarding the interests of First Bank’s shareholders and depositors, stressing the bank's role in ensuring corporate governance. "As Chairman of FBN Holdings, my primary responsibility is to protect the interests of the bank’s shareholders and depositors," Otedola explained. "These actions are necessary to recover funds that belong to depositors and ensure corporate governance. My commitment to upholding the integrity of the financial system and protecting depositors outweighs any cheap attempts at blackmail."

Otedola also emphasized his personal integrity and philanthropic efforts, notably his role as Chancellor of Augustine University and his support for the Save the Children Fund. "Let me remind the public that my integrity is not in question," he affirmed, pointing to his long-standing commitment to charitable causes. "I will not allow unscrupulous elements to derail the efforts of First Bank to recover loans or jeopardize the financial security of our shareholders."

Obaigbena’s financial woes, Otedola’s triumph

This is the latest in a series of financial controversies surrounding media mogul Obaigbena, who launched THISDAY in 1995 and Arise News in 2013. Over the years, he has faced multiple allegations of mismanagement and fraud. In 2016, his financial troubles escalated when Nigeria’s Economic and Financial Crimes Commission (EFCC) detained him following investigations into the misuse of funds intended for arms procurement. His troubles extended beyond Nigeria in 2021, when he was disqualified from serving as a company director in the UK due to financial mismanagement at Arise News.

In contrast, FBN Holdings, the parent company of Nigeria’s oldest bank, has thrived under the leadership of Femi Otedola. Despite the economic challenges, including Nigeria’s struggling naira, Otedola has propelled the company to remarkable financial milestones. Under his stewardship, total assets surged from N14.17 trillion ($8.56 billion) in June 2023 to N27.49 trillion ($16.6 billion) by September 2024, while the company’s equity grew by 88.6 percent.

Otedola’s strategic oversight is reflected in these impressive gains, including a 128.2 percent profit increase to N610.5 billion ($371.7 million) in the first nine months of 2024, primarily driven by higher interest income, commissions, and fair value gains. Since becoming chairman, Otedola has also solidified his position as the largest individual shareholder, increasing his stake from 5.07 percent in 2021 to 13.16 percent.

Beyond the banking sector, Otedola’s leadership has revitalized Geregu Power, where profits more than doubled from N11.36 billion ($7.2 million) in 2023 to N24.19 billion ($15.1 million) in 2024. The company, which Otedola took full ownership of in 2021, was also honored for its corporate governance with the “Most Compliant Listed Company of the Year 2024” award at the NGX Made of Africa (MOA) Awards. This recognition further emphasizes Otedola’s commitment to transparency and excellence.

His diversified success across sectors such as energy, finance, and philanthropy solidifies his standing as one of Africa's most impactful business leaders. Despite challenges, including media blackmail, Otedola remains focused on safeguarding First Bank’s legacy and continues to steer both the bank and Geregu Power to new heights. His philanthropic endeavors, such as the $14-million donation to Save the Children UK in 2019, reflect his long-standing commitment to social causes, especially in supporting vulnerable children in northeast Nigeria.