Bank Led By Nigerian Billionaire Femi Otedola Recovers $305-million Loan From Failed Bank

First Bank’s financial statements for the first quarter ending March 2024 show balances with other banks at N688 billion ($460 million), down from N735 billion ($490 million) in December 2023. The recovered loan is expected to further strengthen this position.

Heritage Bank’s financial troubles began in 2019, prompting the CBN to intervene to prevent its collapse. Despite regulatory support, the bank’s financial health continued to decline, leading to the CBN’s decision to revoke its banking license on Monday, citing “continued financial distress and lack of recovery prospects.”

FBN Holdings, the parent company of First Bank, is chaired by Nigerian billionaire Femi Otedola, who holds a significant stake in the financial services group. Since becoming a majority shareholder in October 2021, Otedola has played a key role in enhancing the group’s financial performance and valuation. The group operates across ten countries.

Otedola’s leadership is solidifying FBN Holdings’ position in Nigeria’s financial sector. Total assets rose to N21.58 trillion ($15.51 billion) by March 31, 2024, from N16.94 trillion ($12.17 billion) on December 31, 2023, while retained earnings increased from N588.9 billion ($423.37 million) to N794.4 billion ($571.1 million).