First HoldCo Plc has clarified widespread speculation surrounding a major N323 billion block share acquisition, distancing both its chairman, Femi Otedola, and the Nigerian government from the high-stakes transaction.

In a statement to the Nigerian Exchange Limited (NGX) and the public, the bank's holding company disclosed that RC Investment Management Limited, not any government agency or insider investor, was the buyer of the over 10 billion shares traded earlier in the week.

Mystery buyer emerges in billion-naira share deal

The deal had sparked widespread rumours, with some outlets suggesting that the federal government had taken control of a significant stake in the company as part of an alleged effort to assert influence in Nigeria’s oldest bank.

Others speculated it was a strategic consolidation move led by Otedola himself, who has steadily increased his involvement in the banking sector over the past year.

Otedola, FG not involved, firm says

Breaking its silence, First HoldCo said plainly:

“We wish to state that the Chairman of First HoldCo, Mr. Femi Otedola, did not purchase any of the shares in question, nor did the Federal Government of Nigeria or any of its agencies acquire the shares in trust.”

According to the company, the sellers of the shares were Barbican Capital Limited and its affiliates, along with Leadway Group and its affiliates.

The sole buyer, as stated officially, was RC Investment Management Limited, a firm yet to reveal its long-term intentions with its new stake in the bank.

AGF denies the government’s involvement In a separate but related development, the Attorney General of the Federation (AGF) firmly dismissed media reports that a government trustee vehicle was used to purchase the shares.

TheCable reports that the AGF’s office described the claims as “inaccurate, misleading and malicious,” stating that neither the Tinubu administration nor any federal institution was involved in the deal.

The statement emphasised that the shareholding transaction was a private-sector initiative and should not be politicised or misinterpreted.

Link to banking recapitalisation strategy? This transaction comes as Nigeria’s banking sector faces fresh regulatory pressure from the Central Bank of Nigeria (CBN), which has mandated a sweeping recapitalisation process for all commercial banks.

Although First HoldCo has not confirmed whether the sale is directly tied to recapitalisation efforts, industry analysts suggest the deal may be strategic.

With large investors repositioning and major blocs of shares changing hands, firms may be preemptively realigning ownership and capital structures ahead of the recapitalisation deadline.

It also raises questions about the role private equity and investment managers like RC Investment may play in shaping the future of Nigeria’s banking landscape, especially as banks scramble to meet new capital requirements.

As the dust settles, market watchers remain focused on how First HoldCo will leverage its new investor relationship and whether other legacy banks may soon follow a similar path.