Nigerian businessman and investor Femi Otedola’s fortune has risen to about $2 billion, bringing him within striking distance of Tanzania’s Mohammed Dewji and Zimbabwe’s Strive Masiyiwa, according to wealth estimates attributed to Forbes.
Otedola’s latest wealth milestone has been driven largely by the sharp appreciation in the value of his substantial stake in First HoldCo Plc, the parent company of FirstBank Nigeria.
The development marks a significant increase from the $1.3 billion fortune Forbes attributed to Otedola in March. His wealth had risen to about $1.8 billion in August before moving closer to the $2 billion mark.
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Forbes’ real-time profile had valued Otedola at $1.9 billion as of September 16, illustrating how quickly the billionaire’s estimated wealth can change with movements in listed equities.
At the latest $2 billion estimate reported by BusinessDay, Otedola is about $100 million behind Dewji, founder and chief executive of Tanzanian conglomerate MeTL Group, whose fortune is estimated at $2.1 billion, and $200 million behind Masiyiwa, founder of Zimbabwe-based Econet Group, whose fortune is estimated at $2.2 billion.
The narrowing wealth gap highlights the growing influence of African capital markets on billionaire fortunes, particularly where substantial personal wealth is tied to publicly traded companies.
FirstHoldCo rally lifts Otedola’s wealth
The latest boost to Otedola’s fortune follows a sharp rally in FirstHoldCo shares.
The stock rose 8.11 per cent to ₦160 on September 18, from ₦148, according to Nigerian Exchange data. The rally pushed FirstHoldCo’s market capitalisation to approximately ₦7.28 trillion, making it the first listed Nigerian bank to cross the ₦7 trillion mark.
The rise has significantly increased the market value of Otedola’s holding in the financial services group.
Otedola has been steadily increasing his exposure to FirstHoldCo through his investment vehicle, Calvados Global Services Limited.
According to transaction disclosures cited in the report, he has spent about ₦351.2 billion increasing his stake through five disclosed purchases since July 22.
His latest disclosed acquisition involved the purchase of approximately 95.7 million FirstHoldCo shares for ₦12.58 billion on August 24, taking his holding to about 12.23 billion shares, equivalent to approximately 26.6 per cent of the company.
With FirstHoldCo’s shares now trading at ₦160, the value of that disclosed holding alone is roughly ₦1.96 trillion, although the precise value of Otedola’s overall investment and net worth will vary with market movements.
FirstHoldCo has experienced a dramatic share-price run in recent months. NGX data shows the stock trading at ₦136 on September 11 before rising to ₦141 on September 14 and 15, ₦148 on September 17 and ₦160 on September 18.
From $1.3bn to $2bn
Otedola’s reported wealth increase represents a gain of roughly $700 million from the $1.3 billion estimate recorded in March.
The businessman has substantial interests beyond FirstHoldCo. Forbes says he previously sold his majority stake in Geregu Power, receiving roughly $750 million, while retaining a 5 per cent interest in the power-generation company. He also owns properties and other investments.
However, his growing FirstHoldCo position has become increasingly important to his publicly visible wealth as the bank’s market value has surged.
The relationship between the share price and his wealth also means that the latest milestone is not necessarily a fixed measure of his wealth. Forbes’ real-time billionaire estimates change with market prices for individuals who hold significant publicly traded assets.
FTSE Frontier 50 adds investor attention
FirstHoldCo’s latest rally comes as the company prepares for inclusion in the FTSE Frontier 50 Index, alongside other Nigerian companies including Zenith Bank, GTCO, MTN Nigeria, Dangote Cement and Aradel Holdings.
Nigeria’s return to the FTSE Russell Frontier Market classification has also increased international attention around the country’s equities market.
For FirstHoldCo, inclusion in the benchmark could increase visibility among international investors and funds that track or benchmark against frontier-market indices. It does not, however, guarantee a particular level of foreign investment, as actual demand will depend on the company’s index weighting, fund mandates and broader investor appetite.
The company’s current market value of about ₦7.28 trillion represents a substantial increase from earlier levels. NGX data shows its market capitalisation at about ₦6.18 trillion on September 11, before the latest share-price surge.
Otedola closes in on African billionaire peers
The latest wealth estimate puts Otedola in increasingly close proximity to some of Africa’s prominent billionaire entrepreneurs.
Dewji’s estimated $2.1 billion fortune leaves a reported $100 million gap, while Masiyiwa’s $2.2 billion fortune is about $200 million ahead.
The development also demonstrates how rapidly billionaire rankings can change when wealth is concentrated in listed companies.
For Otedola, the performance of FirstHoldCo has become particularly significant. As the bank’s share price rises, the market value of his stake increases; a reversal in the stock would have the opposite effect.
For now, the combination of Otedola’s increased FirstHoldCo ownership and the bank’s strong share-price performance has pushed his estimated fortune towards the $2 billion threshold and narrowed the wealth gap with Dewji and Masiyiwa.
