KEY POINTS

• Otedola says First HoldCo’s restructuring may cause disruption but is necessary for long-term stability.
• The group has taken a major profit hit after cleaning up N748bn in non-performing loans.
• Otedola reaffirms commitment to building a transparent, sustainable, world-class financial institution

Femi Otedola, chairman of First HoldCo Plc, says the ongoing restructuring of the financial services group may cause short-term disruption but is crucial to securing the company’s long-term stability and competitiveness.

In a post on X on Tuesday, Otedola said transforming a long-established institution like First Bank’s parent company requires confronting deep-seated problems and laying a stronger foundation for sustainable growth.

“Rebuilding a long-established institution like FBN Holdings can bring some disruption, but it is part of strengthening the business,” he wrote.

“We are fixing what is not working and laying stronger foundations for the future. This is a new chapter anchored on transparency, accountability, sustainability, and long-term value.”

Commitment to Building a World-Class Institution

The billionaire investor said he remains fully committed to building a world-class financial institution and reaffirmed that his resolve to continue investing in First HoldCo remains firm.

His comments suggest a long-term strategy focused on restoring confidence in the group’s operations, governance framework, and financial health, following years of challenges linked to asset quality and weak risk management.

Otedola’s remarks come as First HoldCo undertakes an aggressive balance-sheet clean-up that has significantly affected its bottom line.

On January 31, the chairman disclosed that the group took a major profit hit after moving to address N748 billion in legacy non-performing loans. The decision, he said, was deliberate and aimed at strengthening the institution over the long term, even though it contributed to a sharp drop in 2025 profit.

According to him, the clean-up is a necessary step toward repositioning the group for healthier growth, improved risk controls, and stronger earnings quality in the years ahead.