- Targets African banking dominance
Onome Amuge
Femi Otedola, prominent activist investor and Chairman of First Holdco Plc, has expressed profound optimism regarding the future direction of First Bank, Nigeria’s oldest financial institution.
Speaking at the company’s 13th Annual General Meeting on Thursday, Otedola revealed his intention to inject over N320 billion in cash, without any borrowing, into the institution by the conclusion of its ongoing capital raise exercise.
This substantial personal commitment underscores Otedola’s conviction that First Bank is poised for a significant transformation. “I am more optimistic than ever that we are on the right path to repositioning Nigeria’s oldest and most iconic bank as the number one financial institution in Africa,” he told shareholders, outlining a bold vision for the group.
Otedola, who is also First Holdco’s largest individual shareholder, acknowledged the bank’s rich heritage, dating back to 1894, but conceded that it had more recently been plagued with non-performing loans and several corporate governance and confidence issues. Despite these challenges, he maintained the institution possesses “huge potential that is yet to be unlocked.”
His involvement, he explained, began with a major stake acquisition in 2021, a period when he had contemplated retirement after successfully repositioning and selling Forte Oil Plc in 2019.
“The intentional drive to rebuild and reposition First Bank became emboldened by the acquisition of additional shares and assuming a leadership position to consolidate these objectives,” he said.
“This was not a gamble; it was a calculated, strategic move to rebuild First Bank into a modern, well-governed, and highly profitable institution. And this doesn’t stop here. I am willing to invest even more as we prepare for our next round of capital raise, following the resounding success and oversubscription of our recent offer,” Otedola assured investors, confidently predicting the bank would meet the Central Bank’s capital deadline well ahead of schedule.
Drawing parallels with broader national economic reforms, Otedola commended President Bola Ahmed Tinubu for what he described as a bold and visionary leadership and the implementation of ‘tough but necessary reforms. He also commended Yemi Cardoso, governor of the Central Bank of Nigeria, for his courageous and pragmatic policy reforms, which he believes are restoring credibility to the financial system and giving investors like him the confidence to commit long-term capital to this country.
He also recognised the immense contributions of the board of directors and management, as well as the unwavering commitment of the institution’s esteemed 40 million-plus customers,who he said have ensured its relevance for over 130 years.
As an activist shareholder, Otedola reiterated his clear mandate to curb excesses and wastages, protect depositors’ funds, deliver strong returns to shareholders, and contribute meaningfully to society and the environment. He pledged to continue enforcing stronger corporate governance, encompassing responsible lending, operational discipline, and ethical leadership.
Otedola assured that the management will build a group that is trusted, tested, respected, and unmatched in service-delivery, innovation, governance, and profitability.
“Within the next four years, we will be one of Africa’s top banks, not just by asset size but by value creation, governance standards, and strategy,” he added.
