Confusion Trails Otudeko’s 10.43 Billion Share Sale In First Bank Holding Company
July 19, 2025
LAGOS, Nigeria — Confusion and speculation have continued to trail the recent sale of 10.43 billion shares in First Bank Holding Company (First HoldCo), previously held by prominent Nigerian businessman Oba Otudeko and his associate, Hassan Odukale. The deal, reportedly valued at over ₦323 billion, has sparked intense public debate over the identities of the buyers, regulatory transparency, and the implications for corporate governance in the banking sector.
On Wednesday, July 16, the Nigerian Exchange (NGX) witnessed one of its largest off-market transactions in recent history. Approximately 10.43 billion shares, representing about 25% of First HoldCo’s total equity, were exchanged in 17 block deals executed at ₦31 per share.
Oba Otudeko, through Barbican Capital Limited, sold approximately 7.79 billion shares, while Hassan Odukale, linked with Leadway Holdings, disposed of around 2.65 billion shares. The total transaction value is estimated at over ₦323 billion.
The sale led to a sharp increase in First Bank’s stock price, which surged by nearly 10%, closing at ₦32.20 per share shortly after the news broke.
The size and speed of the transaction triggered a wave of speculation, particularly regarding the identity of the buyer:
- Initial claims suggested that Femi Otedola, the current Chairman of First HoldCo and a significant shareholder, was behind the acquisition. Some reports claimed that the billionaire had increased his stake to over 40%, consolidating control of the institution.
- Government Involvement Alleged: A separate narrative emerged alleging that the Federal Government, through a trustee arrangement, facilitated the purchase as part of the Central Bank of Nigeria’s (CBN) recapitalization strategy. This account implied that the acquisition was part of broader regulatory measures aimed at stabilizing the financial sector.
- Denials Issued: Both Femi Otedola and the Office of the Accountant General of the Federation (AGF) swiftly issued public statements denying any involvement in the transaction. The AGF described the reports linking the government to the share purchase as “inaccurate, misleading, and malicious.”
In a statement released by First Bank Holding Company on Friday, the firm clarified that the buyer of the 10.43 billion shares was RC Investments Management Limited, a Special Purpose Vehicle (SPV) reportedly affiliated with Renaissance Capital.
According to the company, RC Investments is controlled by Mr. Sule Babatunde, CEO of Renaissance Group, a reputable investment firm. RC Investments was incorporated in 2024 and is said to be a registered capital market operator in Nigeria.
The statement emphasized that no shares were purchased by Femi Otedola or any federal government-linked entity.
Despite the official clarification, the transaction has raised several important regulatory and governance concerns:
- Lack of Immediate Disclosure: The Nigerian Exchange Regulation (NGX RegCo) confirmed that it had not received timely notification of the ownership change, which is a mandatory requirement when a shareholder crosses the 5% threshold.
- CBN and SEC Silence: As of this report, neither the Central Bank of Nigeria nor the Securities and Exchange Commission (SEC) has issued formal comments on the transaction, fueling concerns about oversight and transparency.
- Governance Concerns: Market analysts have questioned the opacity surrounding such a large and potentially influential deal, warning that the lack of clarity could undermine investor confidence in the Nigerian capital market.
The sale marks the formal exit of two of the company’s largest historical shareholders—Otudeko and Odukale—effectively reshaping the bank’s ownership structure. With RC Investments now holding a significant stake, questions remain regarding their long-term intentions, board representation, and potential strategic direction for First HoldCo.
This also opens up renewed speculation about Femi Otedola’s continued role and whether he remains the single largest shareholder or has been overtaken by the new entity.
The 10.43 billion share transaction in First HoldCo has not only rewritten the ownership script of one of Nigeria’s oldest financial institutions but also raised broader concerns about market transparency, regulatory compliance, and the need for improved communication between corporate actors and the investing public.
As stakeholders await formal regulatory disclosures and possibly a revised shareholder register, the financial sector will be closely watching how this development shapes the governance and future of First Bank
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