Zenith Bank Plc’s founder and Chairman, Mr. Jim Ovia, and the Group Managing Director/CEO, Dr. Adaora Umeoji, have significantly increased their stake in the bank, acquiring shares worth over N3.3 billion between June 10 and June 18, 2025.
This emerged as FirstHoldCo Plc’s announcement of its plan to exit regulatory forbearance in December this year has stirred fresh concerns.
Also, yesterday, the All-Share Index (ASI) rose by 39 basis points in early trading, with banking stocks leading the charge up by 130bps.
The acquisitions by Ovia and Umeoji, demonstrated confidence in the bank’s fundamentals and its ability to deliver shareholder value amid ongoing regulatory reforms.
The transactions were disclosed in separate filings on the Nigerian Exchange, with purchases made through direct and indirect holdings.
Umeoji bought directly in the open market, while it disclosed a related party acquisition bought by Quantum Zenith Securities and Investments, owned by Ovia.
Umeoji, led the acquisitions with a total of 68.75 million shares purchased in two tranches. On June 18, she bought 58,754,007 units at N48 per share, and earlier, on the same day, acquired 10 million units at N47.90 per share. The combined purchase was valued at approximately N3.3 billion.
On the other hand, Ovia, through Quantum Zenith Securities and Investments, acquired 1.45 million shares across three transactions.
On June 10, 250,000 units were purchased at N50.90 per share, this was followed by 700,000 units at N46.10 per share on June 16 and another 500,000 units at N45.50 per share on June 17, amounting to a cumulative purchase valued at over N67 million.
The insider purchases came a day after Zenith Bank reaffirmed its commitment to exit all regulatory forbearance arrangements with the Central Bank of Nigeria (CBN) in 10 days, by the June 30, 2025, deadline, clearing the path for a potential dividend payout thereafter .
In a disclosure signed by the Company Secretary, Michael Otu, the bank had explained that it had already surpassed the N500 billion minimum capital requirement and is currently compliant with the CBN’s Single Obligor Limit (SOL).
The remaining forbearance exposure affecting only two credit customers was expected to be fully provisioned before the end of June.
Meanwhile, in a statement yesterday, First HoldCo Plc assured investors that it remains on course to meet compliance requirements and sustain dividend payments after December 31st, 2025.
In the statement, the company explained the SOL breach at its flagship subsidiary, FirstBank, was tied to foreign currency loans to two customers affected by the over 200 per cent naira devaluation in 2023/2024.
It added that the breach would be resolved with the planned capital raise in the second half of 2025.
FirstHoldCo also clarified that its forbearance exposures were linked to syndicated loans across industry sectors, which are currently being restructured.
With the planned completion of the capital raise in the second half of 2025 among other measures, the bank will cure the breach in this regard by the end of the year. Furthermore, the bank’s forborne loans are in respect of syndicated facilities that are industry exposures.
“The consortium of lenders is working to re-tenor the facilities to align with their cashflows as all the assets are back to active production and generating appreciable revenue,” it added.
It also noted that some also have receivables awaiting payment from relevant agencies of government and that syndicate lenders would ensure the processes are concluded within the current financial year.
It stated further: “Any loan not fully re-tenored will be fully provisioned and exit forbearance. As a well-diversified financial holding Company, FirstHoldCo will sustain its dividend payments in 2025 and beyond as we remain committed to our esteemed stakeholders.”
However, what FirstHoldCo did not say is that the consortium of lenders in this instance to Aiteo limited have already provisioned for the facility. They include, GTCO, which provisioned in December last year, as well as Zenith Bank and AccessCorp which said they will provision for the Aiteo facility in 10 days.
Banking Analysts wonder what manner of restructure FirstHoldco will undertake over the next 6months when the borrower, Aiteo is in dispute with Shell Trading ( a member of the consortium over valuation of the asset) leading to the provisioning by GTCO and others.
Analysts say FirstHoldco’s statement has not provided any clarity or comfort as to how it will exit forbearance by the end of the year and pay dividend to shareholders.
Analysts also question the status of former Chairmen, Oba Otudeko and Tunde Hassan-Odukale’s shares, (Leadway shares) which Femi Otedola is currently acquiring. The market is seeking full transparency.
In buying those shares, it does not necessarily increase the bank’s capital, but just a matter of crossing shares and taking control of the holding company, as the hard work of raising FirstHoldco’s capital to above the N500 billion mark through Right Issue remains unclear.
In the meantime, the Nigerian equities market continued its upward momentum yesterday, buoyed by renewed investor confidence in the banking sector following Zenith Bank’s founder and CEO’s share purchases and strong dividend guidance.
The All-Share Index (ASI) rose by 39 basis points in early trading, with banking stocks leading the charge up by 130bps.
All Tier-1 banking stocks traded in the green, led by FirstHoldCo gaining 5.12 per cent, AccessCorp up by 3.34 per cent, Zenith Bank by 2.16 per cent, UBA gained 1.18 per cent, and GTCO marginally by 0.63 per cent.
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