Why First Bank Transaction Sparks Financial Market Speculation

A massive N323.4 billion ($211.7 million) share transaction involving First HoldCo Plc, the parent company of First Bank of Nigeria, has set the Nigerian financial market abuzz with questions and guesses. 

‎This deal, one of the biggest in the history of the Nigerian Exchange Limited (NGX), happened on July 16, 2025, involving the sale of 10.43 billion shares, which is about 25% of all First HoldCo’s shares, at N31 per share. 

‎Unlike regular stock market trades, this was done privately through 17 “off-market” deals, meaning they were negotiated directly between the buyers and sellers. 

‎The size of the deal, combined with uncertainty about who bought the shares and why, has everyone talking about what it means for First Bank, Nigeria’s oldest bank, and its future.

‎The shares were sold by two big players: Oba Otudeko, a former chairman of First HoldCo, and Tunde Hassan-Odukale, another ex-chairman. 

‎‎Otudeko sold 7.79 billion shares through companies he controls, like Barbican Capital Limited (5.87 billion shares), Peace Account GASL Nominee (1.52 billion shares), and RAML/MEF9 (392.9 million shares). 

‎Hassan-Odukale sold 2.28 billion shares through his companies, including Leadway Holdings Limited (1.03 billion shares) and Leadway Assurance Company (432.3 million shares), plus other pension and investment firms he’s linked to. 

‎‎The buyer was listed as First Securities Ltd, a brokerage firm, and the deal was handled by several other firms like Cardinal Stone Securities and Meristem Stockbrokers.

‎The big question is whether Femi Otedola, the current chairman of First HoldCo and a wealthy businessman, bought these shares to gain more control of the bank. 

‎According to reports, his ownership could have jumped from 11.8% (as reported in 2024) to as much as 36.7% or even 40%, making him the most powerful shareholder in First Bank and among Nigeria’s top banks. 

‎But there’s a conflicting story suggesting a company called RC Investments Management Limited, possibly acting for the Nigerian government, bought the shares instead. 

‎‎This confusion, along with no official announcement from First HoldCo or the NGX, is driving the speculation.

Why It Caused Speculations

Several reasons explain why this deal has everyone guessing about what’s happening:

‎Who Bought The Shares?

‎‎Nobody knows for sure who the buyer is. Many believe Otedola, who has been buying First HoldCo shares since 2021, is behind it. If true, he could now control up to 40% of the bank, giving him huge influence. 

‎‎However, one report claims RC Investments Management Limited, linked to someone named Samuel Babatunde Sule and possibly the government, was the buyer. 

‎The NGX rules say any deal involving 5% or more of a company’s shares must be publicly announced, but as of July 18, 2025, neither First HoldCo nor the NGX has said anything. This silence is fueling suspicions. 

‎First Bank’s History Of Fights

‎First Bank has had years of drama among its big shareholders. Otudeko was chairman from 2012 to 2021 but was removed by the Central Bank of Nigeria (CBN) for breaking rules, like giving his own companies huge loans (one was N456 billion!). 

‎‎He’s also facing a lawsuit from the Economic and Financial Crimes Commission (EFCC) over a N12.3 billion fraud case. Some say First HoldCo’s current leaders, led by Otedola, pushed Otudeko to sell his shares to avoid more legal trouble. 

‎This deal gave Otudeko over N300 billion, letting him walk away from the bank’s problems. 

Hassan-Odukale, who also fought for control in 2021, sold his shares too, possibly to invest in other businesses. These exits suggest a big shift in who runs the bank, making investors wonder what Otedola’s plans are.

‎New Government Rules 

‎The CBN, which oversees banks in Nigeria, made new rules on June 13, 2025, called the Single Obligor Limit. 

‎These rules stop banks from lending too much money to one person or company and require banks like First HoldCo to raise N500 billion in new capital by March 2026 to stay strong. 

‎First HoldCo has raised N346 billion so far but still needs N154 billion. Some experts think this share deal was a way to reorganize the bank’s ownership to follow these rules, not just Otedola buying more shares. But without clear information, people are left guessing.

‎Big Market Reaction

‎After the deal, First HoldCo’s share price shot up by 9.9% to N32.2 on July 16 and climbed to N35.40 by July 18, a 20% increase in two days. This pushed the bank’s total value to over N1.3 trillion. 

‎Investors are excited because Otedola has a good track record of turning around companies like Forte Oil and Geregu Power. 

‎They hope he can fix First Bank’s problems, like its N1 trillion in bad loans (money lent out that might not be paid back). 

‎But some smaller shareholders worry that if Otedola owns too much (like 30% or more), he could make decisions that favor him over them.

Earlier this year, these shareholders protested a N350 billion share sale plan, thinking it was Otedola’s way to take over quietly.

‎First Bank’s Challenges

‎‎First HoldCo is struggling with big issues, like its N1 trillion in bad loans and the need to raise more money to meet CBN rules. There are speculations because they want to know if Otedola, or whoever bought the shares, can solve these problems. 

‎The CBN is also watching to make sure smaller shareholders aren’t pushed out, adding pressure to clear up the confusion.

Financial Outlook 

This N323.4 billion deal could be a turning point for First HoldCo, potentially ending years of fights and instability. 

‎If Femi Otedola now controls up to 40%, his experience could help fix First Bank’s bad loans and meet the CBN’s new rules. But the lack of clear information about who bought the shares and why, is making investors nervous. 

‎The NGX and CBN need to share details soon to calm the market and protect smaller shareholders. 

‎As Nigeria’s banks work to raise more money and follow new rules, this deal shows how powerful businessmen, government rules, and market hopes are shaping First HoldCo’s future. 

‎Until there’s an official announcement, the speculation will keep growing, and everyone will be watching to see what happens next at Nigeria’s oldest bank.

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