Otedola’s $750m War Chest: Market Braces for Next ‘Big Move’ From GTCO Entry to Anchoring Dangote Refinery IPO

… How Otedola’s Liquidity Redefines the 2026 Investment Map

Femi Otedola’s liquidity event—a massive $750 million (approximately ₦1.1 trillion) cash injection from his Geregu stake sale—comes at a pivotal moment in the Nigerian economic cycle.

With the 2026 recapitalization deadline looming for banks and the energy sector undergoing a structural shift, Otedola is positioned as the ultimate “Market Mover.”

In a move that sent shockwaves through the Nigerian power sector and the investment community, billionaire tycoon Otedola earlier this week sold his controlling interest in Geregu Power Plc.

As of December 29, 2025, a formal “Change in Shareholding” notification filed with the Nigerian Exchange (NGX) confirmed that Otedola divested a significant portion of his Geregu stake, marking a strategic pivot for the man who brought the first power generation company to the main board of the exchange.

The new influx of liquidity and firepower means Otedola is set to redefine the 2026 investment map.

MoneyCentral has identified four strategic areas where this capital is most likely to be deployed to maximize both influence and returns.

1. Consolidating the Throne: First HoldCo (FirstBank)

Increasing his stake in FBN HoldCo Plc is the most logical “defensive and offensive” move Otedola can make. As the current Chairman, Otedola has a vested interest in ensuring the group meets the ₦500 billion new Central Bank of Nigeria (CBN) capital requirement without diluting his influence.

• The Play: Using a portion of the $750m to lead a Private Placement or pick up unsubscribed shares in a Rights Issue.

• Impact: This would solidify his control and signal to international investors that Nigeria’s oldest bank is backed by “fortress” private capital.

Otedola’s combined direct and indirect stake has risen to approximately 16.98% up from 16.1% in September 2025.

Otedola now owns 7,111,457,953 shares in First HoldCo which has 41.878 billion shares outstanding. He may be set to further increase his stake with the fresh firepower at his disposal.

2. The Infrastructure Titan: Dangote Refinery IPO

The relationship between Aliko Dangote and Femi Otedola is one of Nigeria’s most significant business alliances. With the Dangote Refinery IPO expected to be the largest listing in African history (potentially valued at $20bn+), Otedola could take a cornerstone investor role.

• The Play: A strategic equity stake in the refinery would transition Otedola from “Power Generation” (Geregu) to “Energy Processing.”

• Impact: It aligns with his history of investing in critical national infrastructure while securing high-margin dividends as the refinery begins full-scale PMS and Jet A1 exports in 2026.

Otedola and Dangote have in the past partnered to buy stakes in Nigeria’s state owned oil refineries, which was however overturned by the government. This could be a way to rekindle that partnership.

3. Strategic Banking Hedge: GTCO Stake

While First HoldCo is his primary focus, a move into Guaranty Trust Holding Company (GTCO) would be a pure “Alpha” play. GTCO is arguably the most efficient bank in Nigeria with the highest Return on Equity (ROE).

• The Play: Acquiring a significant but non-controlling minority stake (e.g., 10%) as a “Yield Play.” With GTCO valued at N3.315 trillion a 10% stake purchase would cost Otedola just about N331 billion or ($228 million). Otedola could easily build up his GTCO stake in London or on the NGX or both.

• Impact: This provides Otedola with a diversified banking portfolio, balancing the “turnaround” story of First HoldCo with the “cash-cow” performance of GTCO.

It is important to note that Mr. Otedola has been here before as he once controlled major stakes in Nigeria’s largest banks including United Bank for Africa (UBA) and Zenith Bank. So in a sense it would be back to familiar territory for the ultimate market maker.

4. The Digital Frontier: AI & Data Centres

Otedola has in the past hinted at shifting toward “future-proof” assets. Nigeria currently suffers from a massive shortfall in local data residency and nascent artificial intelligence (AI) industry.

• The Play: Investing in a tier-4 Data Centre hub in Lagos or Abuja, potentially partnering with global giants like Microsoft or Amazon Web Services (AWS) for an AI-localized cloud.

• Impact: This offers a “dollar-indexed” revenue stream and positions him at the center of Nigeria’s digital transformation and the booming global AI race.

Africa’s richest man Aliko Dangote earlier this year expressed interest in investing in data centers in India, recognizing the immense growth potential in digital infrastructure in the world’s most populous nation.

Otedola could decide to follow in the footsteps of Dangote by investing a portion of his $750 million firepower in technology, AI and Data Centers on the African continent and beyond.

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