In a significant move that has stirred renewed investor interest, Custodian Investment Plc announced that its Board Director, Mr. Olakunle Ade-Ojo, acquired 150 million shares of the company, amounting to N2.98 billion. The transaction was formally disclosed through a share dealing notice published on the Nigerian Exchange on May 26, 2025. Adeyinka Jafojo, the Company Secretary, signed the notice, confirming the acquisition.

Breakdown of the Share Purchase

According to the notice, Mr. Ade-Ojo executed the transaction in five separate tranches spread across a week, from May 19 to May 26. The average purchase price stood at N19.84 per share. The acquisition details include:

• May 19: 10 million shares bought at N19.45

• May 20: 35 million shares acquired at N19.60

• May 21: Another 35 million shares purchased at N19.70

• May 22: 35 million shares executed at a high of N20.65

• May 26: Final 35 million shares at N19.80

Before this transaction, Mr. Ade-Ojo held 926,136,506 shares in Custodian Investment, both directly and indirectly, giving him a 15.7% stake. Following the new acquisition, his total holding surged to 1,076,136,506 shares, representing an 18.3% share in the company’s ownership and voting power.

Mr. Ade-Ojo, who also serves as the Managing Director of Toyota Nigeria Ltd, is widely recognized as a prominent figure in Nigeria’s business community. His increased investment in Custodian Investment appears to reflect strong confidence in the company’s future trajectory.

Market Reactions and Share Performance

This strategic purchase had a ripple effect on market activity. After the first tranche was executed on May 19, trading volumes on the Nigerian Exchange surged significantly. Daily volumes climbed to over 10 million shares, reflecting increased investor enthusiasm.

The company’s stock performance in 2025 has been remarkable. Custodian Investment began the year trading at N17.10 per share and has since maintained a solid upward trend. During January alone, it recorded a turnover of 34.1 billion shares and closed at N18.90.

In February, the stock retained positive momentum, albeit with lower trading activity. By the end of March, Custodian shares had climbed to N19.50, while April saw a slight correction as the stock dipped to N18.00.

However, May has proven to be a turning point. Prior to Mr. Ade-Ojo’s purchase, shares traded between N17.00 and N18.00. After the acquisition on May 19, the stock price rose sharply, surpassing N21.00 on May 22. By May 26, shares closed at N19.70, delivering a month-to-date gain of 11.11%.

Strong First Quarter Lays Foundation for Growth

Custodian Investment’s strong fundamentals likely played a key role in Mr. Ade-Ojo’s increased investment. The company reported a solid financial performance in the first quarter of 2025.

Pre-tax profit reached N12.3 billion, reflecting a 3% year-on-year growth. This growth was largely driven by a standout performance from the investment division, which generated N11.8 billion in Q1, compared to N7.04 billion in the same period last year.

Despite absorbing N1.37 billion in direct operating expenses, the company posted a net income of N16.1 billion. On the balance sheet side, total assets expanded to N432 billion, a 6% increase from the previous year. Additionally, retained earnings rose by 11.28%, climbing to N100.1 billion.

This performance underscores Custodian’s growing strength in Nigeria’s financial sector, particularly in investment management, insurance, and pensions—its three core business segments.

Investor Sentiment and Strategic Implications

Mr. Ade-Ojo’s substantial purchase reinforces market sentiment that Custodian Investment remains undervalued despite its robust financials. Analysts suggest that insider purchases of this scale often signal positive expectations about a company’s long-term prospects.

In particular, his increased stake could suggest plans for deeper engagement in corporate governance or influence over strategic decisions as the company pursues expansion opportunities. Some market watchers also view the move as a defensive strategy to consolidate control amid potential interest from institutional investors or competitors.

The development may encourage more retail and institutional investors to consider Custodian shares as a growth stock with upside potential, especially given its impressive 90% year-to-date return as of late May 2025.

Conclusion: Strong Fundamentals and Executive Confidence Drive Momentum

In summary, Mr. Olakunle Ade-Ojo’s acquisition of N2.98 billion worth of Custodian Investment shares marks a pivotal moment for the company in 2025. Not only has it boosted his stake to 18.3%, but it has also injected momentum into the stock market, helping lift Custodian’s share price by over 11% in May alone.

Coupled with a robust Q1 performance and growing investor confidence, the move underscores Custodian Investment Plc’s strengthening position in Nigeria’s financial services landscape. As the year progresses, stakeholders will closely watch for further strategic actions by the company’s leadership, particularly with such a significant insider now holding nearly one-fifth of the total voting power.