Femi Otedola Signals Reset at First HoldCo

Billionaire investor Femi Otedola has warned that the ongoing restructuring of First HoldCo Plc will involve difficult disruptions as the financial services group embarks on a deep reset aimed at long term stability.

Otedola, chairman of the holding company, made the remarks in a statement shared on his social media page, where he described the transformation as both necessary and unavoidable for an institution of First HoldCo scale.

According to him, rebuilding a large financial group requires dismantling outdated structures and confronting weaknesses that may have been ignored in the past. He said the process would bring a mix of positive outcomes and uncomfortable adjustments as management works to lay a new foundation.

Otedola framed the reset as a turning point in the company history, saying the group has entered a new phase anchored on transparency, accountability and sustainable value creation. He stressed that the objective is to build an institution designed to endure, rather than chase short term performance.

The comments come against the backdrop of First HoldCo 2025 financial results, which showed a sharp decline in profitability and triggered concern among investors. The results marked one of the most challenging reporting periods for the group in recent years.

First HoldCo reported a profit before tax of two hundred and twenty nine point zero nine seven billion naira in 2025, down sharply from the seven hundred and ninety six point four six one billion naira recorded a year earlier. Profit after tax fell by more than ninety three percent year on year, despite growth in interest income.

Management attributed the decline largely to a one time impairment charge of seven hundred and forty eight billion naira, taken to clean up legacy non performing loans and strengthen the balance sheet. Otedola described the move as a deliberate clean house decision aligned with regulatory expectations and industry best practice.

He emphasized that the impairment was not the result of weak core operations but a strategic step to address inherited risks and position the group for future growth under a stronger governance framework.

Otedola influence within First HoldCo has expanded significantly over the past year. In 2025, he increased his stake to 18.12 percent after acquiring an additional three point eight two billion shares, reinforcing his position as one of the group most powerful shareholders.

Company filings show that his total shareholding rose to eight point zero five billion shares, up from four point two three billion shares in 2024. His holdings place him among only two investors with ownership above five percent, alongside RC Investment Management Limited.

As of December 2025, Otedola direct shareholding stood at three point two five billion shares, while his indirect holdings accounted for four point eight zero billion shares, underscoring his long term commitment to the group.

Market analysts say Otedola growing exposure signals confidence in the restructuring strategy and gives him significant leverage in shaping the future direction of one of Nigeria most systemically important financial institutions.