Otedola praises Tinubu’s, Cardoso’s reforms as First HoldCo’s annual profit surges

President Bola Tinubu’s “tough but necessary” reforms to transform Nigeria to an investor-friendly haven has proven the president’s “bold and visionary leadership,” Femi Otedola, top shareholder of First HoldCo, the parent of Nigeria’s oldest lender First Bank, has said.

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Similarly, Yemi Cardoso, the governor of the Central Bank of Nigeria (CBN), is also pursuing courageous and practical reforms that offer assurance of investment safety, Mr Otedola said in a Thursday statement, issued following First HoldCo’s 13th annual general meeting in Lagos.

“His actions are restoring credibility to the financial system and giving investors like me the confidence to commit long-term capital to this country.”

The businessman is referring to the far-reaching monetary and economic policies Mr Cardoso has implemented since taking office in 2023.

The reforms Mr Otedola praised have earlier won applause from Bretton Woods lenders like the IMF and the World Bank, both of them long-standing advocates of orthodoxy.

Monetary policy tightening by the CBN all through 2024 raised interest rate by 8.75 per cent, helping fulfil one of the key aspirations of the central bank’s chief, who came to office promising to tame galloping inflation.

First HoldCo’s net profit rose 118.1 per cent to N677 billion, with interest income accounting for as much as 74.6 per cent of revenue.

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Mr Otedola sold his controlling stake in energy company Forte Oil (now Ardova) in 2019 and acquired electricity provider Geregu Power that same year, taking it public in October 2022.

He disclosed in his Thursday statement that his goal of positioning First HoldCo as the foremost financial institution in Africa inspired his acquisition of a significant stake in the group in 2021, which also drove subsequent share purchases.

“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,” he said.

“By the time we conclude the next phase of capital raise, I would have personally invested over N320 billion, all in cash, without borrowing a single naira.”

First HoldCo announced this March it had sourced N150 billion in fresh capital from an equity sale to shareholders, which was 25 per cent oversubscribed.

A private placement is in the works for a further N350 billion capital raise targeting affluent investors. It will help meet the half-a-trillion-naira new minimum core capital requirement for lenders with international banking operations in Nigeria, with the deadline set for March next year.

Mr Otedola, who described himself as “an activist shareholder” in the press release, vowed to curtail wastages and executive indulgences like acquisitions of private jets and unchecked luxuries to safeguard depositors’ funds and deliver improved shareholder value.

BELOW IS THE FULL STATEMENT BY MR OTEDOLA

First Holdco Plc has just concluded its 13th Annual General Meeting today and with today’s deliberations , I am more confident than ever before that we are on the right path to repositioning Nigeria’s oldest and most iconic bank as the number one financial institution in Africa.

First Holdco and its major subsidiary, First Bank Plc maintain their rich heritage entwined in our national history as the first and oldest bank in Nigeria, having been established in 1894. While the institution has more recently been plagued with non-performing loans and several corporate governance and confidence crises, it has still remained very resilient, with a very huge potential that is yet to be unlocked. Unlocking this potential and positioning the entity as the foremost financial institution in Africa requires a series of bold and deliberate steps, which I have decided to champion under my leadership.

The vision of positioning the institution started with the acquisition of a significant stake in 2021 at a time I was planning to retire from corporate life with the sale of Forte Oil Plc (former African Petroleum); a company I successfully repositioned and sold 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. 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. By the time we conclude the next phase of capital raise , I would have personally invested over N320 billion, all in cash, without borrowing a single Naira. I am very positive that we will raise the capital required well ahead of the Central Bank’s deadline… that, I can assure you.

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. 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. 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.

“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 specially 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. I will continue to enforce stronger corporate governance from risk asset management to responsible lending, operational discipline, and ethical leadership.

My vision is simple but bold: First Holdco Plc and its subsidiaries, in Nigeria and across the globe, will become the global standard for financial services. We will build a group that is trusted, tested, respected, and unmatched in service delivery, innovation, governance, and profitability. Let me say it again: First Bank will not just compete it will dominate. 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 strategic impact. We will expand lending, scale our digital infrastructure, and accelerate international expansion with every subsidiary playing a pivotal role in delivering results.

I have done this before. I know what it means to fail, rise up, and win. I have revived companies that were considered dead and turned them into value-making machines. Geregu Power Plc is a testament to this having revived and repositioned it from a moribund company to contributing 10% of Nigeria’s electricity consumption. First Bank is no different; it’s a turnaround with a purpose, and we are well on our way. I invest in value, I invest with conviction, and I stay the course. First Holdco Plc is my best bet yet.

We are back. We are profitable. And we remain on course in our aggressive pursuit to be the foremost financial institution in Africa.

FEMI OTEDOLA
May 22, 2025