Discussions about banking power structures are fueled by Otedola’s growing presence in First HoldCo.

With his most recent purchase of First HoldCo Plc shares, Femi Otedola now owns nearly 20% of the company, making him one of the most powerful individual investors in Nigeria’s banking sector and reigniting the discussion about how much power a single investor should have in a systemically significant bank.

The rise coincides with the continued fragmentation of ownership structures throughout Nigeria’s banking industry, a model that developed following post-2009 banking reforms intended to limit the concentration of power within financial institutions, strengthen corporate governance standards, and lessen excessive insider dominance.

According to market disclosures, Otedola currently owns about 19.3% of First HoldCo, the company that owns First Bank of Nigeria, through affiliated entities. In a single trading session on the Nigerian Exchange (NGX) on May 13, 2026, Otedola, acting through Calvados Global Services Limited, bought 549,535,653 ordinary shares of First HoldCo at N79 per share. The deal, which is estimated to be worth N43.41 billion, is one of the biggest single-day investments made by a single person in NGX history. His total direct and indirect share of the company’s issued capital increased from 8.055 billion shares, or 18.12 percent, to roughly 8.604 billion shares, or 19.36 percent. Although RC Investment Management Limited is still thought to hold a larger bloc, this position places him among the largest individual shareholders in any tier-one Nigerian bank, according to data that is publicly available.

A shareholder with nearly one-fifth of a bank’s equity could still have significant influence, according to governance experts, even though Otedola is still far from majority ownership.

Johnson Chukwu, the CEO of Cowry Asset Management Limited, contended that the presence of powerful core investors in banks has not by itself resulted in operational instability or governance shortcomings in the financial system.

“We have those use cases replicated in almost all the major banks, and it has not in any way jeopardized efficient operations,” he stated.

He contends that whether a bank’s ownership structure and leadership follow accepted corporate governance norms is more important than the size of a shareholder’s stake.

He stated, “What matters is that you have ownership and leadership that want to follow good corporate governance standards and that are not overbearing or unduly negatively influential.”

“It even becomes advantageous to the bank if they have a positive influence,” he continued.

Additionally, Chukwu rejected claims that a mere 20% stake automatically equates to control of a bank, pointing out that significant minority interests, independent directors, and larger board structures continue to be crucial counterweights within regulated financial institutions.

Eighty percent of the shares are still held outside of that structure, and minority interests exist. “Independent directors are also included in the board’s constitution,” he stated.

According to David Adonri, Chairman of Highcap Securities, Otedola’s growing influence at First HoldCo has so far coincided with increased investor confidence in the company, even though a nearly 20% stake in a systemically important financial institution could draw regulatory and investor scrutiny.

He claims that the businessman’s consistent share purchases have improved the market’s opinion of the bank’s future and increased shareholder value.

Through his growing stake, he continues to provide the organization with more funding and trust. The market has reacted favorably, and shareholders have profited from the share price increase, according to Adonri.

In an environment where banking stocks continue to be appealing to both institutional and retail investors, he continued, investors usually assess such developments from the perspective of returns and market performance. For a lot of investors, the company’s ability to generate value is crucial. The stock’s upside benefits those who stay invested, but gains can also be realized by those who choose to sell, he stated.

However, Adonri pointed out that some analysts and market players might still see growing ownership concentration in a big bank as a governance issue, particularly in an industry thought to be essential to the stability of the financial system.

He claims that whenever a dominant shareholder starts to appear within a regulated financial institution, worries about excessive influence are common.

However, he clarified that rather than underlying concerns about ownership concentration, retail investors in the Nigerian market frequently react more to earnings performance, dividend prospects, and share price momentum. The typical retail investor has a herd mentality. They often follow the sentiment and direction of the market. Regardless of the dominant shareholder, they are likely to stay invested if they witness solid performance and ongoing value creation, he stated.

Manufacturing and industrial companies listed on the Nigerian Exchange are examples of sectors in Nigeria that have historically operated under concentrated ownership structures, with founders and promoter groups maintaining significant control over corporate decision-making and strategic direction. However, due to more stringent regulatory oversight and the systemic significance of financial institutions, ownership in the banking industry has historically remained relatively distributed.

Billionaire businessman Aliko Dangote controls more than 80% of the shares in companies like Dangote Cement Plc through affiliated entities, giving him significant control over corporate governance and policy decisions. In other non-banking industries, such as BUA Cement Plc and BUA Foods Plc, founder-linked holdings connected to Abdul Samad Rabiu continue to hold a disproportionate amount of ownership.

In contrast, even though powerful founders, chairmen, or strategic investors continue to play important roles in determining corporate direction, the majority of tier-one Nigerian banks, such as Zenith Bank Plc, Guaranty Trust Holding Company Plc, Access Holdings Plc, and United Bank for Africa Plc, have historically maintained broader institutional and retail shareholder structures.