Shock Twist: N324 Billion Share Transfer Linked to Federal Custodian, Not Otedola

Fresh revelations have debunked earlier reports that billionaire investor Femi Otedola had acquired an additional 25% stake in First Holdco Plc, pushing his total shareholding to 40%. Contrary to that belief, the shares in question were actually acquired by a trustee acting on behalf of the Federal Government through a custodial arrangement facilitated by the Office of the Attorney General and the Central Bank of Nigeria.

According to iReporter Online, this trustee arrangement is temporary, lasting two to three weeks while authorities deliberate on how best to manage the newly acquired stake. A strategic decision is expected regarding the shares, with a keen focus on First Bank’s capital-raising plans in response to the Central Bank’s regulatory requirements.

The shakeup in ownership comes in the wake of long-standing internal shareholder disputes at First Holdco, which saw Oba Otudeko, the former Chairman, charged to court following a criminal complaint lodged by the Otedola-backed FBN management. The Central Bank, concerned about the instability such infighting could cause to capital adequacy targets, opted for a diplomatic resolution. This involved Otudeko’s compelled exit from the board, with the charges against him dropped in exchange.

The aftermath of this internal power reshuffling was felt strongly in the capital market on Wednesday, as First Holdco’s shares experienced a major off-market block trade. According to iReporter Online, a staggering 10.47 billion units valued at N324.47 billion changed hands on the Nigerian Exchange Limited (NGX). These trades were executed at a fixed rate of N31.00 per share, causing First Holdco’s stock to spike by 9.9% and close at N32.20 per unit.

According to iReporter Online, the transactions were executed via negotiated block deals rather than the typical buy/sell orders seen in open-market trading. The major buyer was identified as First Securities Ltd, which also acted as a seller in several of the 17 executed deals, suggesting a complex portfolio reshuffle or internal transfer.

Meanwhile, the Hassan-Odukale family, another significant long-term shareholder in the company, voluntarily divested their 5% stake in what market insiders have described as a strategic exit for improved shareholder returns elsewhere. These exits represent a major reconfiguration of ownership in First Holdco, signalling a new era for the institution under tightened regulatory scrutiny and revamped stakeholder alignment.