The First Bank bet that added billions to Otedola’s wealth: All you need to know
When billionaire businessman Femi Otedola began steadily increasing his stake in First HoldCo, the move attracted attention in Nigeria’s financial market.
Months later, the value of that investment has climbed sharply, helped by a combination of Otedola’s continued share purchases, a strong rally in First HoldCo’s stock and a significant improvement in the banking group’s financial performance.
As of September 18, 2026, Otedola’s First HoldCo stake was worth more than ₦2 trillion after the company’s shares hit a record ₦162.80 on the Nigerian Exchange (NGX). He holds about 12.34 billion shares, representing roughly 27.6% of the company.
That means the billionaire’s First HoldCo investment has become one of the most valuable individual holdings on the Nigerian stock market.
How Otedola built his First HoldCo stake
Otedola did not acquire his position in one transaction.
The businessman has repeatedly bought First HoldCo shares, gradually increasing his ownership in the financial services group.
In July, for example, a company linked to Otedola acquired about 1.78 billion First HoldCo shares for approximately ₦222.2 billion. The transaction came shortly after another purchase of more than 706 million shares.
By August, Otedola’s stake had risen to 27.70% after he acquired another 95.7 million shares worth about ₦12.58 billion through Calvados Global Services Limited.
His accumulation has continued to coincide with a strong rise in the company’s share price.
On September 18, First HoldCo shares rose by the maximum 10% permitted in a trading session, reaching ₦162.80. The move added about ₦182.6 billion to the market value of Otedola’s stake in a single session.
First HoldCo shares have surged
Otedola’s gains have not come only from buying more shares.
The value of the shares he already owns has also risen considerably.
According to a September 18 market report, First HoldCo had gained 194.4% in the year to September 14, making it the strongest-performing Nigerian bank over that period. The banking index gained 67.96% during the same period, while the broader Nigerian market gained 56.35%.
The rally means that shares bought by Otedola at lower prices are now worth substantially more on paper.
It is important to note, however, that an increase in the market value of his shares is not the same as cash profit. The value would only become realised to the extent that shares are sold at the higher price.
What is happening inside First HoldCo?
The share-price rally has also been accompanied by a significant improvement in First HoldCo’s earnings.
The group reported a profit before tax of ₦654 billion for the first half of 2026, an 83% increase from the corresponding period in 2025.
First HoldCo’s own financial disclosures show that its first-quarter 2026 gross earnings rose 26.8% year-on-year to ₦942 billion, while profit before tax increased 72.2% to ₦321.1 billion. The company attributed part of the improvement to actions taken in 2025 to address impaired and non-performing loans.
The group’s financial statements and results are available through its “official investor-relations portal” .
This is important because First HoldCo’s current performance follows a difficult period in which the group made substantial provisions to clean up its balance sheet.
In other words, the story is not simply about a rising share price. Investors are also responding to a banking group that has reported stronger earnings after addressing some of its legacy credit problems.
The number attracting investors’ attention
One of the clearest indicators of First HoldCo’s recent performance is its return on average equity.
The group reported a 31.63% return on average equity in the first quarter of 2026, according to Billionaires Africa. That figure was higher than the comparable figures reported for the major Nigerian and South African banks examined in the publication’s analysis.
By the half-year, First HoldCo’s return on average equity stood at 30.37%, according to the same analysis.
For investors, the metric matters because it provides an indication of how effectively a company is generating profit from shareholders’ equity.
But the sharp rise in First HoldCo’s valuation also means investors are paying more for those earnings. The September 18 analysis put the company’s price-to-book ratio at 1.91 and price-to-earnings ratio at 17.56, both above the Nigerian banking median cited in the report.
Why Otedola’s First Bank bet matters
First HoldCo is the parent company of FirstBank, one of Nigeria’s oldest and largest banking institutions. The group also operates businesses spanning asset management, securities, trusteeship and insurance brokerage.
For Otedola, the investment has therefore become much more than a passive stock-market position.
His continued purchases have made him the company’s largest shareholder, while the rise in First HoldCo’s share price has pushed the value of his stake beyond the ₦2 trillion mark.
The businessman has previously indicated that he intends to keep increasing his investment. In August, reports said Otedola had signalled that his investment threshold generally goes above 51%, although his stated position regarding First HoldCo’s ultimate ownership has been the subject of market interest.
For now, the numbers tell a clear story: Otedola has continued putting money into First HoldCo while the company’s shares and reported earnings have climbed.
The bigger question is whether the strong performance can be sustained.
As First HoldCo’s valuation rises, investors will be watching whether its improved earnings continue to come from underlying banking operations, rather than factors that may not be repeated in future periods. That will help determine whether the remarkable rise in Otedola’s First HoldCo investment represents the beginning of a longer-term transformation or another chapter in Nigeria’s rapidly changing banking market.