Otedola Set To Take Full Control Of First Bank As Otudeko, Odukale Exit Stakes

The prolonged power tussle for the control of Nigeria’s premier financial institution, First Holdco Plc—the parent company of First Bank of Nigeria—appears to be nearing a definitive resolution. Key stakeholders, Oba Otudeko and the Leadway Assurance/Olukayode Odukale bloc, are reportedly finalizing an agreement to sell their stakes to billionaire businessman Femi Otedola at a price of ?31 per share.

According to sources familiar with the transaction, the deal—once concluded—will firmly consolidate Otedola’s grip on FirstBank, ending years of intense boardroom rivalry that, at times, threatened the stability of Nigeria’s oldest and most systemically important bank.

The internal struggle for control has spanned several years, involving three prominent Nigerian business figures: Oba Otudeko, Olukayode Odukale (through Leadway Assurance), and Femi Otedola. The contest has played out through aggressive share acquisitions, behind-the-scenes boardroom maneuvers, and close regulatory oversight, including interventions by the Central Bank of Nigeria (CBN).

Otedola’s consistent accumulation of shares since 2021 signaled his long-term ambition to become the bank’s controlling force. With the latest acquisition, that vision is now materializing, positioning him in a role akin to Jim Ovia at Zenith Bank and Tony Elumelu at United Bank for Africa (UBA).

Analysts believe the development could usher in long-awaited stability and strategic coherence for FirstBank, allowing it to pursue bolder, long-term business objectives without the distractions of internal power struggles. The resolution, they note, could also strengthen the bank’s corporate governance structure and strategic focus.

Otedola’s rise to prominence within the institution has been rapid. In July 2023, he acquired 797,946,415 shares at an average price of ?21.58, a deal valued at ?17.2 billion, pushing his equity stake to 11.64%—the first time any individual surpassed the 10% threshold in the bank’s historically diffused ownership structure.

This was followed by another purchase of 534,094,407 shares at ?30, increasing his total holding to 13.16%. Earlier in the year, Otedola had spent ?18.9 billion to amass a 9.41% stake.

His influence within the bank grew further when he joined the board as a non-executive director in August 2023 and emerged as Chairman of the holding company just six months later. Since then, he has been credited with spearheading an aggressive corporate transformation, including the strategic decision to relocate the bank’s headquarters to Eko Atlantic City.

Sources also indicate that Otedola is offering over a 5% premium to other major shareholders to secure full control, reflecting his firm commitment to FirstBank’s long-term future. The bank’s recent 19% month-on-month share price gain further signals market confidence in its new strategic direction under Otedola’s leadership.

Once finalized, the transaction will mark a pivotal moment in Nigeria’s banking history, firmly establishing Femi Otedola as the central figure in the next chapter of FirstBank’s evolution.