Oba Otudeko, a long-standing shareholder and former chairman of First Bank Holding Company Plc (First Holdco), has exited the group following a major off-market transaction on the Nigerian Exchange Limited (NGX). The deal involved 10.43 billion ordinary shares valued at approximately N323.33 billion, executed across 17 negotiated deals at an average of N31 per share, representing 25% of First Holdco's total shares. Initially, it was speculated that the stake had been acquired by Femi Otedola, the current chairman of First Holdco. However, emerging details reveal that the shares were actually acquired by a trustee acting on behalf of the Federal Government of Nigeria, established by the Office of the Attorney General in collaboration with the Central Bank of Nigeria (CBN).
"The shares are now with the trustee for the next two or three weeks, when they will decide how to proceed and reach a strategic decision on what to do with the shares and also look at FGN's plan for capital raise to meet CBN requirement," a source familiar with the transaction told ThisDay.
The block transaction comes amidst efforts to resolve shareholder conflicts that have long plagued First Holdco. Otudeko was previously charged to court following a criminal complaint by Otedola-led management, but the matter was dropped as part of a broader regulatory effort to stabilize the bank. "The apex bank, working with the Attorney General, decided to seek a non-legal solution to the infighting, resulting in the exit of Oba Otudeko in return for withdrawing the criminal complaint and prosecution by First Bank," the source said.
The off-market deal also saw the voluntary exit of another key shareholder, the Hassan Odukale family, who offloaded abour five percent of their holdings in a bid to seek better returns elsewhere. The total value of the trades reached N324.47 billion, executed at a fixed price of N31, while First Holdco's share price surged by 9.9% to N32.2, lifting the group's market capitalization to over N1.3 trillion.
Market observers said the transaction marks a major milestone in the evolution of First Holdco's ownership structure and signals a possible shift in governance. "First Bank is now positioned on the right side of history," said Boniface Okezie, National Coordinator of the Progressive Shareholders Association. “The transaction gives them the breathing room to tidy up their capital position, and given their legacy as the oldest bank in the country, they are in a strong position to outpace younger banks in the recapitalisation race.”
The deals were conducted under the NGX’s negotiated window, allowing large trades to be arranged privately before formal execution. Findings showed that First Securities Ltd acted as the buyer, while CardinalStone Securities, Meristem Stockbrokers, Rencap Securities, Regency Asset Management, United Capital Securities, and Stanbic IBTC Stockbrokers were among the sellers. Interestingly, First Securities Ltd also appeared on the seller’s side in some transactions, indicating potential portfolio reshuffling or inter-account transfers.
While the identity of the final beneficiary of the trustee-held shares remains under deliberation, regulatory filings are expected to follow. The CBN is likely to vet and approve any new significant shareholder in compliance with banking sector oversight protocols.
The development also led to a massive spike in overall market activity, with total turnover jumping by 807% to 11.67 billion shares valued at N363.41 billion, driven primarily by the First Holdco deal.
As the bank braces for the CBN's recapitalization mandate, the exit of long-term, high-stakes players like Otudeko and Hassan-Odukale, along with the federal government's strategic intervention, signals a new era of stability and reform under the leadership of Otedola.
