The market has speculated about the involvement of billionaire investor and current chairman of First Holdco, Femi Otedola, in the N323.4bn block transaction in the holdco’s shares.
This follows the execution of one of the largest deals on the Nigerian Exchange Limited in recent times, even as the market awaits regulatory disclosure of the transaction.
According to transactional records seen by The PUNCH, the deal was executed in 17 negotiated trades at N31 per share on Wednesday, July 16, 2025. It involved the movement of over 10 billion shares through multiple brokers, including CardinalStone Securities, Meristem Stockbrokers, Rencap Securities, United Capital Securities, Stanbic IBTC Stockbrokers, Regency Asset Management, and First Securities Ltd., which was also listed as the buyer.
Data shows that the majority of the shares offloaded came from entities linked to Oba Otudeko and Tunde Hassan-Odukale. Oba Otudeko’s divestment totalled approximately 7.79 billion shares, including 5.87 billion units crossed through Barbican Capital Limited, 1.52 billion shares via Peace Account GASL Nominee, and 392.9 million shares through RAML/MEF9.
Tunde Hassan-Odukale’s divestment was executed through several pension, insurance, and investment entities, accounting for a combined 2.28 billion shares. This includes 1.03 billion shares sold by Leadway Holdings Limited, 432.3 million shares by Leadway Assurance Company, and 392.3 million shares from UBAPC/Leadway Pensure PFA Ltd-T.
Other sales came from various pension schemes and internal accounts under the Leadway structure.
The transaction has sparked speculations in the minority shareholder community and among market watchers that Otedola may have acquired a significant portion of the shares and now controls a large block of First HoldCo.
Although some analysts dismissed the speculations, saying his current stake stood at 11.8 per cent, which is the information available in its 2024 full-year financial report.
The Chief Executive Officer of Arthur Stevens Asset Management Limited, Tunde Amolegbe, stated that, “Our understanding is that he has sold his shares to Femi Otedola. While we do not have any official documents at the moment, the market has been aware of this for a while now. Negotiations were ongoing for him to sell so the bank could move forward.”
He added that the shareholder in question has legal disputes with the bank, which accelerated the decision for a share transfer.
“He had legal issues with the bank, so the negotiation was for him to sell his shares and leave the bank,” Amolegbe said.
However, he noted that the Nigerian Exchange Limited is yet to release any formal notification regarding the share transfer, which is required under exchange rules when shareholding exceeds five per cent.
“NGX has not released a formal document yet. They have a specific timeline to do so because the stake involved is above five per cent, as per the rules of the exchange.”
An economist and investment specialist, Vicent Nwani, stated that this reflects a recurring pattern in the ownership history of First HoldCo, a legacy institution that has witnessed periodic shifts in strategic control over the years.
“One thing I know is that whatever is happening, the current chairman must know, and that is natural. We have seen that over the last three years, Otedola has acquired lots of shares, and billionaires like him do not just stop. They have a deep pocket to consolidate their stake. Even Oba Otudeko did the same thing. Every decade or so, First Bank experiences ownership reshuffling. These flows, whether through asset swaps, negotiated exits, or silent acquisitions, usually reflect repositioning in the power structure of the institution.”
He added that the most important role now lies with the Central Bank of Nigeria, which must ensure that minority shareholders are protected amid any ongoing changes.
While speculations continue to mount regarding Otedola’s involvement in the latest transaction, market observers maintain that without an official statement from FBN Holdings or the NGX, the true intent and beneficiary of the block deal remain unclear.
Additionally, a market analyst who spoke to The PUNCH on condition of anonymity, explained that the recent spike in trade volume was not a conventional market acquisition but rather part of a strategic adjustment to meet regulatory requirements, particularly the Central Bank of Nigeria’s Single Obligor Limit policy.
“This is not a new acquisition by Otedola,” a source familiar with the matter said. “The block deal that happened was triggered by the need to address regulatory forbearance concerning the CBN’s Single Obligor Limit. It was an internal restructuring rather than a straightforward market sale.”
The Single Obligor Limit policy, revised by the Central Bank of Nigeria on June 13, 2025, is aimed at ensuring banks reduce exposure to large single borrowers and increase capital buffers. The CBN directed banks enjoying regulatory forbearance to suspend dividend payments, defer bonuses for senior executives, and halt offshore investments. The new rules have prompted several banks and their key shareholders to adjust their capital and ownership structures accordingly.
Despite the scale of the transaction, no filing had been made by First HoldCo to the Nigerian Exchange as of press time. This has raised questions among investors and analysts, especially as the NGX rules mandate that any transaction involving five per cent or more of a listed firm’s shares must be publicly disclosed.
