Shares of FBN Holdings Plc (First Holdco) have soared by more than 20 per cent in just two trading sessions, following heightened investor interest triggered by a landmark ₦323.33bn off-market transaction that reshaped the company’s ownership structure.
The stock, which closed at ₦29.30 on Monday, July 14, rallied to ₦32.20 by Wednesday and climbed further to ₦35.40 during the trading on Thursday, July 17.
The sharp price movement reflects strong market optimism surrounding the exit of Oba Otudeko, a long-time key shareholder, and the potential implications of new leadership at the helm of Nigeria’s oldest financial group.
The rally follows the execution of one of the largest block transactions in Nigerian capital market history. Through the Nigerian Exchange Limited’s negotiated window, 10.43 billion ordinary shares—representing 25% of First Holdco’s 41.87 billion outstanding shares—were traded in 17 off-market deals at an average price of ₦31 per share.
The strategic transaction, widely interpreted as the final phase of Otudeko’s exit from the group, has shifted investor attention toward a possible consolidation of control by billionaire investor Femi Otedola, who is now the most prominent shareholder in First Holdco.
The buyer, while yet to be formally disclosed, is widely believed to be billionaire businessman Femi Otedola, who now reportedly controls close to 40 per cent of First Holdco’s shares.
Market data and sources within the capital market confirm that Otedola has solidified his position as the company’s largest and most influential shareholder—culminating a lengthy boardroom battle with former shareholders, including Otudeko and Hassan Odukale.
The NGX negotiated window facilitates large-volume trades between willing parties at pre-agreed prices and terms, ensuring minimal disruption to the broader market while maintaining regulatory transparency.
With this acquisition, Otedola now takes full control of FBN Holdings—the parent company of First Bank of Nigeria—where he already serves as chairman of the board. His ascension caps a multi-year effort to gain substantial influence over the 130-year-old financial institution, long regarded as a symbol of Nigeria’s banking legacy.
The market responded positively to the news. First Holdco’s share price surged nearly 10% to close at ₦32.20, lifting its market capitalisation above ₦1.3trn.
Total market turnover also soared, with trading volume jumping 807% to 11.67 billion shares valued at ₦363.41 billion, driven by the significance and size of the transaction.
Market analysts and stakeholders have welcomed the development as a critical turning point that could improve corporate governance, operational focus, and strategic execution at First Holdco.
“This transaction gives First Bank breathing room to tidy up its capital position,” said National Coordinator of the Progressive Shareholders Association of Nigeria, Boniface Okezie. “It positions the bank on the right side of history and puts it in a strong place to lead the recapitalisation race.”
An economist, Bola Oduola said the exit of Otudeko eliminates uncertainty. “The protracted shareholding contest had cast a shadow over governance and direction. A cleaner ownership structure now paves the way for stronger institutional discipline and focus,” he said.
A financial analyst, James Chukwudi noted that the deal is timely as Nigerian banks brace for a recapitalisation deadline set by the Central Bank of Nigeria (CBN). “With Otedola assuming a more decisive role, we expect bolder moves on capital strategy and a redefinition of First Holdco’s competitiveness,” he stated.
A banking sector analyst, Chuka Nwosu added: “This is more than a change in shareholding—it’s a signal of market discipline. Investors will now be watching how First Holdco translates this clarity into sustainable performance.”
The transaction comes as Nigeria’s banking sector undergoes a major regulatory shift. The CBN has mandated that all deposit money banks increase their minimum capital base to ₦500bn by 2026. As of June 2025, First Holdco had raised approximately ₦346bn, leaving a funding gap of about ₦154bn.
Analysts believe the current shake-up improves the group’s ability to attract further investment and execute capital-raising initiatives swiftly under a unified leadership.
Otudeko’s exit marks the end of a contentious era in the history of First Holdco. His stake, previously held via Honeywell-related entities, was central to boardroom conflicts and regulatory scrutiny. The episode drew concerns over corporate governance, transparency, and compliance—particularly at a time when the bank was under close watch by the apex regulator.
With the ownership structure now stabilising, observers say First Holdco is better positioned to focus on long-term value creation, improved risk management, and strategic alignment with regulatory expectations.
As the market awaits formal confirmation of the acquiring party and CBN’s approval of the new controlling interest, attention is now firmly on how Otedola will steer First Holdco through its next chapter—marked by recapitalisation, competitive repositioning, and renewed investor confidence.
