Otedola To Become Almost N1bn Richer As First Bank Announces Dividend Payment Date to Shareholders

Otedola To Become Almost N1bn Richer As First Bank Announces Dividend Payment Date to Shareholders

  • First Bank of Nigeria Holdings Plc (FBNH) has declared a final dividend for the financial year ending December 2023
  • Nigerian billionaire businessman Femi Otedola is set to be rewarded for his investment in the financial institution
  • In 2023, FBNH reported a profit after tax of N310.4 billion, the highest profit ever in its more than 130-year history.

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Nigerian billionaire and investor Femi Otedola is set to receive significant rewards for his investment in First Bank of Nigeria Holdings (FBNH).

FBNH, in a corporate statement published on the Nigerian Exchange Limited (NGX), announced a dividend of 40 kobo per share to shareholders for the year ending December 2023.

Read also

N800/$1: Group speaks on adopting new exchange rate for customs import duty

The total dividend payout to shareholders amounts to N14.35 billion.

First Bank of Nigeria shareholders
First Bank set to reward shareholders Photo credit: Patrick Meinhardt
Source: Getty Images

Dividends are payments a company makes to share profits with its stockholders. They're one of the ways investors can earn a regular return from investing in stocks. Dividends can be paid out in cash, or they can come in the form of additional shares.

Part of the statement reads:

"On August 23, 2024, dividends will be paid electronically to shareholders whose names appear on the Register of Members as at August 13, 2024 and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts"

Otedola to become richer

Femi Otedola, FBHN's Group Chairman and largest individual shareholder, is expected to receive a substantial windfall from the dividend payout.

Read also

Dangote Refinery speaks on Lagos, London stock exchange listings, gives details

Legit.ng analysis shows that Otedola has a total direct and indirect stake of 2.02 billion (2,029,376,358) shares.

This means that, based on the 0.40 value per share, Otedola will pocket N811.75 million as a dividend windfall from his stake in the bank.

Expert speaks

A financial analysts Kunle Alabi in a chat with Legit.ng, explained that the good performance of first bank is similar to the trend from other banks.

He noted:

"The financial sector was a big beneficiary of the Tinubu administration's policies, especially with the naira, due to their high exposure to foreign assets.
"Check other banks; it is the same story: huge profits and strong bottom-line results"

Zenith Bank chairman Jim Ovia makes over N13bn in 5 hours, buys more shares

In another report, Legit.ng revealed that Jim Ovia, the owner of Zenith Bank, has purchased additional shares in his bank.

Read also

Good, bad: List of economic events that shaped President Tinubu’s one-year performance in office

The new shares were purchased after he made over N13 billion from President Tinubu's inaugural speech.

He made money between 9:30 and 14:30, the trading hours of the Nigerian stock market.

Source: Legit.ng

Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

Online view pixel