Chairman of First Holdco Plc Femi Otedola has credited the Federal Government’s economic reforms and the Central Bank’s policies as key drivers behind his ₦320 billion personal investment in First Bank.
Otedola made the remarks on Thursday at the 13th Annual General Meeting (AGM) of First Holdco Plc.
“This journey aligns closely with the bold and visionary leadership of President Bola Ahmed Tinubu, who deserves credit for championing the tough but necessary reforms in our economy,” Otedola said.
He noted that the bank’s journey aligns with “the bold and visionary leadership” of President Bola Tinubu, who “deserves credit for championing the tough but necessary reforms in our economy.”
He also lauded the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, for his “courageous and pragmatic” policy reforms.
“I also commend the Governor of the Central Bank of Nigeria, Mr. Yemi Cardoso, for his courageous and pragmatic policy reforms. His actions are restoring credibility to the financial system and giving investors like me the confidence to commit long-term capital to this country.”
This development follows the conclusion of the bank’s first phase of capital raising exercise for a ₦150 billion rights issue in March. The process recorded subscriptions totalling ₦187.6 billion, exceeding the initial target by over 25 per cent. Although no date was issued, First HoldCo disclosed plans for a second phase of a capital raising exercise, targeting about ₦350 billion through private placement.
At the AGM, the billionaire said the vision to reposition the firm started with acquiring a “significant” stake in 2021.
He noted the acquisition was made as he planned to retire from corporate life with the sale of Forte Oil Plc (former African Petroleum) after repositioning and selling the company 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,” Otedola 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.
“By the time we conclude the next phase of capital raise, I would have personally invested over ₦320 billion, all in cash, without borrowing a single Naira.”
Otedola also said Cardoso’s actions restore credibility to the financial system and give investors the confidence to commit long-term capital to Nigeria.
“I must not also forget to recognise the immense contributions of the board of directors and management of the institution, who have keyed into this overall vision and are dogged in their efforts in ensuring that it is actualised,” he said.
“We have remained relevant and impactful for over 130 years as a result of the unwavering commitment of our esteemed 40 million-plus customers. I especially appreciate them.
“As an activist shareholder, my mandate is clear: curb excesses and wastages (no splurging on private jets, unchecked executive luxuries, etc), protect depositors’ funds, deliver strong returns to shareholders, and contribute meaningfully to the society /environment we serve and operate in.”
He stated his willingness to invest more as the bank prepares for the next phase of its capital raise, following the success and oversubscription of its recent offer.
“I am very positive that we will raise the capital required well ahead of the Central Bank’s deadline… that, I can assure you,” he added.
