Chairman of First HoldCo Plc, Femi Otedola, has warned that the ongoing rebuilding and restructuring of the financial services group will involve significant disruptions.
In a statement posted on his X page on Tuesday, Otedola said the transformation process would bring both pleasant and unpleasant outcomes as management dismantles legacy structures and lays a new foundation for the group’s future.
“Rebuilding and restructuring a behemoth like FirstHoldings Plc will come with a lot of disruptions including both pleasant and unpleasant surprises. We must pull things apart, remove old faulty foundations and build a new experience for all our stakeholders,” he said.
According to Otedola, the restructuring marks a reset for First HoldCo, anchored on transparency, accountability, and long-term value creation.
“A new beginning that guarantees corporate sustainability and longevity, fuelled by the tenacity of purpose and veracity of vision, supported by our core pillars of transparency, accountability, and long-term value for all stakeholders,” he added.
His comments come amid market concerns following First HoldCo’s 2025 financial results, which showed a sharp decline in profitability.
The group reported a pre-tax profit of ₦229.097 billion in 2025, a 71.18 percent drop from ₦796.461 billion in 2024.
Profit after tax also declined by 93.36 percent year-on-year, despite growth in interest income. The company attributed the earnings slump to a ₦748 billion one-off impairment charge, taken to clean up legacy non-performing loans and strengthen the balance sheet.
Otedola described the move as a deliberate “clean house” decision aligned with regulatory guidance and industry expectations, rather than a reflection of weak operating performance.
In 2025, Otedola increased his stake in First HoldCo to 18.12 percent after acquiring an additional 3.82 billion shares. Company filings show he now holds 8.05 billion shares, up more than 90 percent from 4.23 billion shares (11.8 percent stake) in 2024.
His expanded shareholding places him among two investors with ownership exceeding five percent, alongside RC Investment Management Limited, which holds a 23.47 percent stake.
As of December 2025, Otedola’s direct shareholding rose to 3.25 billion shares (7.31 percent) from 1.68 billion shares (4.71 percent) in 2024, while his indirect holdings increased to 4.80 billion shares (10.81 percent), up from 2.54 billion shares (7.09 percent) a year earlier.
The restructuring is expected to remain a key focus for investors as First HoldCo navigates its transition phase and works to restore profitability and confidence.
