At the 13th Annual General Meeting (AGM) of FirstHoldCo Plc, shareholders were not only treated to an impressive financial report but also to a bold assurance from Chairman Femi Otedola: “A better final dividend—above 60 kobo—is coming.”

This statement, delivered with conviction, underscored the confidence of a man who has staked over N320 billion of his personal wealth—entirely in cash and without borrowing—in First Bank, Nigeria’s oldest financial institution and a subsidiary of FirstHoldCo.

The dividend declaration of 60 kobo per 50 kobo ordinary share, approved by 306 shareholders with an overwhelming 99.37% majority, was already a significant jump from the N14.36 billion paid out for the 2023 financial year. This year’s total dividend payout, amounting to N25.12 billion, marks a significant increase, reflecting not just growing profitability but also strategic financial positioning in a volatile economy. However, for Otedola, this is only the beginning.

Speaking passionately to stakeholders at the AGM held on May 22, 2025, Otedola credited recent economic reforms and central banking policies for making such ambitious moves possible. “This journey aligns closely with the bold and visionary leadership of President Bola Ahmed Tinubu, who deserves credit for championing the tough but necessary reforms in our economy,” he said. He also commended the Central Bank of Nigeria (CBN) Governor Yemi Cardoso for policy decisions that have begun to restore credibility to Nigeria’s financial system.

According to Otedola, the improving macroeconomic landscape is giving investors like him the confidence to reinvest in Nigeria. “This is not charity. This is calculated capital allocation driven by improved fundamentals and a belief in long-term value,” he said.

The Group’s Q1 2025 report is nothing short of remarkable. Interest income surged by 40.15% year-on-year to N625.2 billion, with loans and advances to customers contributing N364.1 billion and investment securities accounting for N222.3 billion. Net fee and commission income climbed to N64.1 billion, up from N52.3 billion a year earlier. Most notably, the Group swung from a foreign exchange loss of N98.5 billion in Q1 2024 to a gain of N80.4 billion in the same period this year.

Despite rising operating costs, FirstHoldCo still posted a strong operating profit of N186.6 billion, a testament to its robust financial management and growing resilience. Retained earnings climbed to N1.2 trillion, reflecting a 14.81% increase from the previous year. Meanwhile, the Group’s price-to-earnings (P/E) ratio stands at a modest 1.49x, significantly below the industry average of 2.29x—suggesting that its stock may be undervalued and potentially ripe for further investment.

With a current share price of N24.75, the dividend yield stands at 2.42%, while the payout ratio is 3.79%. Yet, according to Otedola, this is only the foundation for what’s to come.

He stressed patience among shareholders, promising that stronger returns are on the horizon. “Considering how much I have invested in this institution, I want you to be patient. A better final dividend—above 60 kobo—is coming.”

This isn’t mere rhetoric. Otedola’s hands-on involvement and personal financial commitment have brought new energy and focus to the bank’s operations.

Otedola is not your typical investor. Since becoming a shareholder in 2021 following his exit from Forte Oil Plc, he has positioned himself as an activist investor, committed to restoring discipline and driving strategic transformation at First Bank.“This was not a gamble; it was a calculated, strategic move to rebuild First Bank into a modern, well-governed, and highly profitable institution,” he told shareholders. And he has matched words with actions.

Otedola has consistently spoken against executive excesses, vowing to eliminate wasteful spending. “No splurging on private jets, unchecked executive luxuries. The era of executive excesses is over,” he stated.

He promised strong corporate governance, responsible lending, and operational discipline as the guiding principles for FirstHoldCo’s future, reiterating that depositors’ funds must be protected and shareholders should receive strong returns.

The Road to Continental Dominance: More than just stabilizing the ship, Otedola has cast a bold vision for the future. “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.”

Key to this ambition is strengthening the bank’s lending capacity, expanding digital infrastructure, and scaling up international operations. These steps, Otedola believes, will position FirstHoldCo not just as a national leader, but a continental powerhouse.

He compared the ongoing transformation of First Bank to his earlier work with Geregu Power Plc, which now contributes 10% of Nigeria’s electricity output. “I have done this before. I know what it means to fail, rise up, and win… First Bank is no different. It’s a turnaround with a purpose, and we are well on our way,” he declared.

Capital Raise and the Market Signal: As the CBN pushes for stronger capitalization among banks, Otedola’s declaration that his investment will exceed N320 billion signals a strong commitment to ensuring First Bank meets its capital requirements well ahead of regulatory deadlines.

Importantly, his investment is fully funded from personal resources—an extraordinary show of confidence in the institution and its future. This move sends a strong signal to the broader investment community. In a time of global economic uncertainty and cautious investor sentiment, Otedola’s stance is both a bold personal bet and a powerful endorsement of Nigeria’s financial and economic reforms.

With strong Q1 performance, improved macroeconomic outlook, and the assurance of a bigger dividend next year, FirstHoldCo is clearly a company on the rise.
“We are back. We are profitable. And we remain on course in our aggressive pursuit to be the foremost financial institution in Africa,” Otedola concluded. If words are a promise and numbers the proof, then FirstHoldCo, under Otedola’s leadership, is writing a compelling new chapter—one dividend at a time.