Billionaire investor and Chairman of First HoldCo Plc, Femi Otedola, has seen the value of his investment in the financial services group rise by about $221 million (over ₦330 billion at current exchange rates) in just three weeks, highlighting the rewards—and risks—of long-term investing in Nigeria’s equities market.
According to an analysis of Nigerian Exchange (NGX) market data, the value of Otedola’s 9.28 billion shares in First HoldCo increased from approximately $420 million on June 26 to about $641 million by July 17, as the company’s share price surged to ₦95.95.
The increase was driven entirely by the appreciation in First HoldCo’s share price, with no indication that Otedola acquired additional shares during the period.
The share price doubles in a year
First HoldCo has emerged as one of the Nigerian Exchange’s best-performing banking stocks this year.
The stock has gained more than 100 per cent since the beginning of 2026 and recently recorded three consecutive sessions of the NGX’s daily 10 per cent price appreciation limit before closing at a record ₦95.95.
The rally has significantly boosted the wealth of shareholders, particularly Otedola, who has steadily increased his stake in the company over the past two years.
Building the position
Otedola’s investment in First HoldCo was built through multiple acquisitions rather than a single transaction.
He first acquired a substantial stake in December 2024 at about ₦40.06 per share before participating in the bank’s private placement at ₦44 per share. He later increased his holding through additional purchases on the open market, including acquisitions around ₦79 per share.
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Market estimates indicate that he has committed more than ₦250 billion of personal capital to building the position.
His investments have raised his ownership in First HoldCo to about 20.42 per cent, making him the largest individual shareholder in the institution.
Confidence amid uncertainty
The latest rally comes after a period of uncertainty surrounding bank holding companies following regulatory changes by the Central Bank of Nigeria (CBN), including tighter oversight of holding company structures and recapitalisation requirements for commercial banks.
While some investors exited banking stocks during periods of market volatility, First HoldCo has since attracted renewed investor interest as confidence returned to the sector.
The performance of the stock underscores how long-term investors can benefit from remaining invested through periods of uncertainty, although analysts caution that past gains do not guarantee future returns.
A lesson in long-term investing
Commenting on investment behaviour, the Chartered Institute for Securities & Investment (CISI) notes that successful investing is often driven by discipline rather than attempts to time the market.
“Time in the market is generally more important than timing the market,“ the institute says in its investor education guidance, emphasising that long-term investing allows investors to benefit from compounding and market growth while reducing the impact of short-term volatility.
Market analysts say Otedola’s investment illustrates the importance of conviction and patience in equity investing, particularly for investors with a long-term outlook. However, they also stress that concentrated investments carry significant risks and that retail investors should diversify their portfolios rather than replicate the strategies of high-net-worth individuals.
The banking sector regains momentum
The strong performance of First HoldCo also reflects renewed optimism in Nigeria’s banking sector as lenders continue to strengthen their capital positions ahead of the CBN’s recapitalisation deadline.
Banking stocks have attracted increased investor interest in recent months, supported by improved earnings, higher interest rates, and expectations that better-capitalised banks will be well positioned to finance economic growth.
For investors, Otedola’s recent paper gain serves as a reminder that wealth creation in the stock market is often built over years through consistent investment and patience—not necessarily through frequent trading.
Sunday Michael Ogwu is a Nigerian journalist and editor of Pinnacle Daily. He is known for his work in business and economic reporting. He has held editorial roles in prominent Nigerian media outlets, where he has focused on economic policy, financial markets, and developmental issues affecting Nigeria and Africa more broadly.