First Bank Breaks Silence: Otudeko’s Stake to Be Sold as Capital Race Heats Up
- After weeks of speculation, First Bank has clarified its position on the controversial 10.4 billion-share stake linked to Oba Otudeko
- The Managing Director of the financial institution, Wale Oyedeji, explained this during an investor meet in Lagos
- He explained that the shares were temporarily held by a Special Purpose Vehicle (SPV) and would be disposed of in due time
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
First Bank’s parent company, FBN Holdings Plc, has confirmed it will sell off shares previously linked to businessman Oba Otudeko, through a structured transfer involving an undisclosed special purpose vehicle (SPV).
Managing Director Wale Oyedeji made the revelation during an investor call in Lagos on Monday, August 5, 2025, stating, “We will be disposing those shares... ultimately, you will see that those shares will be disposed in the market.”
Source: Getty Images
The RC investment mystery and market controversy
While no specific timeline was disclosed, Oyedeji said the shares were only temporarily held and would be offloaded as part of the bank’s stabilisation plan.
The shares in question—representing approximately 25% of FBN Holdings—were originally held by Barbican Capital, a company linked to Otudeko.
Last month, Barbican sold the stake via a non-traditional structure to RC Investment Management Ltd, an SPV whose beneficial owners remain unnamed.
The transaction raised eyebrows in financial circles, drawing sharp criticism over a lack of transparency and triggering broader concerns about control and governance in one of Nigeria’s oldest financial institutions.
The estimated value of the shares, ₦323 billion, added further weight to the controversy, especially given that Otudeko had previously been entangled in boardroom struggles at First Bank.
Capital raise continues despite share sale drama
Despite the furore, Oyedeji assured investors that the group’s ambitious ₦350 billion capital raise via private placement remains on course and “not impacted by the recent share divestment.”
This capital raise follows a ₦147 billion rights issue earlier this year and is part of FBN Holdings' strategy to meet the Central Bank of Nigeria’s (CBN) recapitalisation directive issued in March 2024.
The CBN now requires commercial banks with international licences to raise their minimum capital to ₦500 billion by 2026, a move that has triggered a wave of mergers, private placements, and rights issues across the industry.
Behind the scenes: Power plays and regulatory pressure
The Otudeko-linked share disposal comes amid long-standing tensions over control of First Bank, following the CBN’s 2021 intervention and board restructuring.
Sources familiar with the situation suggest that the decision to sell the stake is also aimed at removing uncertainty around ownership, ahead of crucial recapitalisation milestones.
With regulatory oversight tightening and investors watching closely, First Bank’s leadership appears determined to streamline its shareholder base while complying with the CBN’s timelines.
What this means for investors and the market
The plan to sell the Otudeko-linked shares could bring clarity to FBN Holdings’ ownership structure, potentially boosting investor confidence at a time of intense scrutiny.
However, depending on how the shares are disposed of—and who acquires them—the move could also reshape control dynamics within Nigeria’s most storied bank.
Source: Getty Images
As FBN Holdings races to meet the CBN’s ₦500bn capital requirement, the outcome of this share disposal could become a defining moment in the institution’s history.
RC Investment buys N323bn First HoldCo shares
Legit.ng earlier reported that First HoldCo Plc has clarified widespread speculation surrounding a major N323 billion block share acquisition, distancing both its chairman, Femi Otedola, and the Nigerian government from the high-stakes transaction.
In a statement to the Nigerian Exchange Limited (NGX) and the public, the bank's holding company disclosed that RC Investment Management Limited, not any government agency or insider investor, was the buyer of the over 10 billion shares traded earlier in the week.
The deal had sparked widespread rumours, with some outlets suggesting that the federal government had taken control of a significant stake in the company as part of an alleged effort to assert influence in Nigeria’s oldest bank.
Source: Legit.ng
