Femi Otedola, the president of First Holdco Plc, cited the Federal Government’s policies and the Central Bank’s economic reforms as the main drivers of his $ 320 billion personal investment in First Bank.
At First Holdco Plc’s 13th Annual General Meeting (AGM), Otedola made the remarks on Thursday.
Bola Ahmed Tinubu’s bold and visionary leadership, which merits praise for advancing the difficult but necessary reforms in our economy, is at the heart of this journey, Otedola said.
He noted that President Bola Tinubu’s “heart and visionary leadership” and the bank’s strategy “deserve praise for championing the difficult but necessary reforms in our economy.”
He also praised Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), for his “courageous and pragmatic” policy changes.
“I also commend Mr. Yemi Cardoso, the governor of the Central Bank of Nigeria, for his tenacious and pragmatic policy changes. His actions give the financial system new life and inspire investors like me to invest in this nation for the long term.
This development comes after the bank’s initial 150 billion rights issue capital raising exercise in March is complete. The process generated subscriptions worth more than 25% than the initial target. First HoldCo made known its intentions for a second stage of a capital raising exercise, which would aim to target about 350 billion through private placement, despite no specific release date.
The billionaire stated at the AGM that the company’s strategy for repositioning was to start with acquiring a “significant” stake in 2021.
He noted that the purchase was made as he planned to leave the corporate world in the wake of Forte Oil Plc’s (former African Petroleum) sale in 2019.
The acquisition of additional shares and assuming a leadership position to consolidate these goals “made the intentional drive to rebuild and reposition First Bank stronger,” Otedola said.
The rebuilding of First Bank into a modern, well-run, and highly profitable institution was not a gamble; it was a deliberate, strategic decision. This does not end here.
By the time the next capital raise phase was over, I would have personally invested more than $ 320 billion in cash without taking a single Naira to borrow.
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Otedola added that Cardoso’s actions gave investors confidence to invest long-term and strengthened the financial system.
“I must not forget to acknowledge the enormous contributions of the board of directors and the institution’s management, who have spearheaded this overall vision and worked tirelessly to make sure that it is realized,” he said.
Our valued 40 million+ customers have been our unwavering support for over 130 years, keeping us relevant and influential. They are very much appreciated.
My role as an activist shareholder is clear: stop unnecessary spending on private jets, unchecked executive luxuries, protect depositors’ funds, deliver strong returns to shareholders, and make a significant contribution to the society/environment we serve and operate in.
Following the success and oversubscription of its most recent offer, he declared his willingness to make more investments as the bank gears up for the bank’s next capital raise.
