Femi Otedola, chairman of First HoldCo Plc, says his
investment in the financial institution would hit N320 billion in cash by the
next capital raising round.
He spoke at First HoldCo’s 13th annual general meeting (AGM)
on Thursday in Lagos.
Otedola said the bank’s journey aligns with “the bold and
visionary leadership” of President Bola Tinubu “who deserves credit for
championing the tough but necessary reforms in our economy”.
He also lauded Olayemi Cardoso, governor of the Central Bank
of Nigeria (CBN), for his “courageous and pragmatic” policy reforms.
In March, the bank concluded the first phase of its capital
raising exercise for a N150 billion rights issue, recording subscriptions
totalling N187.6 billion — exceeding the initial target by over 25 percent.
Although no date was issued, First HoldCo disclosed plans
for a second phase of a capital raising exercise, targeting about N350 billion
through private placement.
Speaking at the AGM, the billionaire said the vision to
reposition the firm started with the acquisition of a “significant” stake in
2021.
He said the acquisition was made when “I was planning to
retire from corporate life with the sale of Forte Oil Plc (former African
Petroleum), a company I successfully repositioned and sold in 2019”.
“The intentional drive to rebuild and reposition First Bank
became emboldened by the acquisition of additional shares and assuming a
leadership position to consolidate these objectives,” Otedola said.
“This was not a gamble, it was a calculated, strategic move
to rebuild First Bank into a modern, well-governed, and highly profitable
institution. And this doesn’t stop here.
“I am willing to invest even more as we prepare for our next
round of capital raise, following the resounding success and oversubscription
of our recent offer.
“By the time we conclude the next phase of capital raise, I
would have personally invested over N320 billion, all in cash, without
borrowing a single Naira. I am very positive that we will raise the capital
required well ahead of the Central Bank’s deadline… that, I can assure you.”
‘CBN REFORMS RESTORING CREDIBILITY IN FINANCIAL SYSTEM’
Otedola, also the chairman of Geregu Power Plc, also said
Cardoso’s actions are restoring credibility to the financial system and giving
investors the confidence to commit long-term capital to Nigeria.
“I must not also forget to recognise the immense
contributions of the board of directors and management of the institution who
have keyed into this overall vision and are dogged in their efforts in ensuring
that it is actualised,” he said.
“We have remained relevant and impactful for over 130 years
as a result of the unwavering commitment of our esteemed 40 million plus
customers. I specially appreciate them.
“As an activist shareholder, my mandate is clear: curb
excesses and wastages (no splurging on private jets, unchecked executive
luxuries, etc) protect depositors funds, deliver strong returns to
shareholders, and contribute meaningfully to the society /environment we serve
and operate in.”
‘FIRST HOLDCO WILL BECOME A GLOBAL STANDARD FOR FINANCIAL
SERVICES’
The businessman promised to continue to enforce stronger
corporate governance from risk asset management to responsible lending,
operational discipline, and ethical leadership.
Speaking about his vision for First HoldCo and its
subsidiaries, he said the company will become the global standard for financial
services in Nigeria and across the globe.
The mogul, describing the vision as “simple, but bold”, said
his team intends to build a group that is trusted, tested, respected, and
unmatched in service delivery, innovation, governance, and profitability.
“Let me say it again: First Bank will not just compete, it
will dominate. Within the next four years, we will be one of Africa’s top
banks, not just by asset size, but by value creation, governance standards, and
strategic impact,” Otedola said.
“We will expand lending, scale our digital infrastructure,
and accelerate international expansion with every subsidiary playing a pivotal
role in delivering results.
I have done this before. I know what it means to fail, rise
up, and win. I have revived companies that were considered dead and turned them
into value-making machines.
“Geregu Power Plc is a testament to this, having revived and
repositioned it from a moribund company to contributing 10% of Nigeria’s
electricity consumption.
“First Bank is no different; it’s a turnaround with a
purpose, and we are well on our way. I invest in value, I invest with
conviction, and I stay the course. First Holdco Plc is my best bet yet. We are
back. We are profitable.”
Otedola said the bank will remain on course in its
aggressive pursuit of being the foremost financial institution in Africa.
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