A dramatic shift in the ownership structure of Nigeria’s oldest bank, First Bank, is shaking up the country’s financial sector. In what has become the largest block trade ever recorded on the Nigerian Exchange (NGX), over 10.3 billion shares, worth more than ₦323 billion, changed hands, transferring control from two of the bank’s most influential former shareholders.
But who exactly is the new buyer? Here’s what we know:
Boardroom battles
First Bank, through its parent company First HoldCo, has witnessed boardroom struggles in recent years. The bank’s current chairman Femi Otedola, Oba Otudeko, founder of Honeywell Group and former chairman of the bank, and Tunde Hassan-Odukale, managing director of Leadway Assurance, had vied for control at different times.
Otudeko re-emerged in 2023 to reclaim his influence, purchasing over 4.7 billion shares via a special purpose vehicle called Barbican Capital. This followed earlier boardroom tensions involving the Central Bank of Nigeria (CBN), which had in 2021 removed the entire First Bank board over alleged corporate governance lapses.
Otedola’s surprise acquisition of nearly 6% of shares in 2022 also intensified shareholder competition. The CBN, concerned that the tussle was distracting from capital raising plans and investor confidence, reportedly brokered a solution, leading to the eventual sale.
A little-known new buyer
On July 18, First HoldCo confirmed the new buyer to be a company called RC Investment Management Limited. It was not Femi Otedola, nor the Federal Government, contrary to widespread speculation.
Following initial media reports, First HoldCo Plc issued a statement through its company secretary, Adewale Arogundade, clarifying the buyer’s identity. The statement explicitly denied any involvement of Otedola, or the federal government.
“We wish to state that the Chairman of First HoldCo, Mr. Femi Otedola, did not purchase any of the shares in question, neither did the Federal Government of Nigeria or any of its agencies acquire the shares in trust,” the company stated.
Federal government denies involvement
The federal government also denied its involvement in the acquisitions. ThisDay had reported that a trustee set up as a special purpose vehicle acquired the shares for the government.
It said the trustee was established “through the settlement being brokered by the Office of the Attorney General of the Federation, working with the Central Bank of Nigeria.”
“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 FBN’s plan for capital raise to meet CBN requirement,” the paper said.
The justice ministry denied the government bought the shares, but confirmed that a trustee was established by First HoldCo, and said that the CBN approved Stanbic IBTC as a third-party overseer.
RC Investment Management Limited is believed to be acting in that stead.
How much the new buyer got and what’s its stake?
RC Investment acquired:
- 7.78 billion shares from Otudeko-linked firms: Barbican Capital and RAML
- 2.65 billion shares from Odukale-linked entities: Leadway Holdings, Leadway Pensure, and others
Total: 10.43 billion shares, valued at ₦323.45 billion
The acquisition gives RC Investment an estimated 29% stake, making it the current largest single shareholder in First HoldCo.
The substantial shareholder as of December 2024 was Femi Otedola, who directly or indirectly owned 4.23 billion shares, equal to 11.8%. With First HoldCo’s total outstanding shares at 35.9 billion as of same date, the new owner controls 29% of the banking company.
Who Owns RC Investment?
Corporate filings reveal that RC Investment Management Ltd was incorporated in Nigeria in 2023, just over a year ago. It is linked to a certain Samuel Babatunde Sule. BusinessDay reports that Sule is associated with at least four other registered entities: RC Africa Limited, Avuso Payment, Odde Properties, and Green Arrow Services Limited.
Little is publicly known about these firms’ operations. Industry analysts are now speculating whether he is acting alone or as a front for more powerful interests, a practice not uncommon in Nigerian corporate circles.
Why It Matters
The deal marks a major shift for First HoldCo. Otudeko, who once chaired the board for nearly 24 years (1997–2021), is now exiting, walking away with a ₦241 billion payout. Odukale’s camp is also cashing out ₦82.1 billion.
What remains unclear is RC Investment’s strategy. Will Sule and his affiliates take an active role in the bank’s governance? Or are they preparing for yet another shift in ownership?
Market watchers say the transaction, while settling lingering shareholder disputes, raises fresh transparency questions. Who backed the record-setting ₦323 billion deal? What is the buyer’s long-term plan? And how will it affect First HoldCo’s capital raising and public trust?
The market’s immediate reaction was positive, with First HoldCo’s share price rallying above N35.40 on July 17, its highest mark ever.
Discover more from Pluboard
Subscribe to get the latest posts sent to your email.