CBN May Take Over First Bank, As Crisis Worsens…

An imminent takeover of First Bank of Nigeria by the Central Bank of Nigeria is in sight, this is as internal crisis rocking the oldest financial institution in Nigeria continues to deepen, ENigeria Newspaper reports.

Recall that consistently, ENigeria Newspaper has over the years continued to chronicle the malfeasance and boardroom challenges entangling First Bank of Nigeria; a development that further deepened since controversial billionaire business man Femi Otedola came onboard the board of the financial house in 2021.

Since then, First Bank has been in a precarious financial position, and the price of the bank’s stock has dropped precipitously due to the frequent boardroom brawls between shareholders.

Only days back, a group of shareholders holding 10 percent shares of the bank, in a formal request demanded to call for an Extra-ordinary General Meeting (EGM) as contained in section 215 (1) of CAMA in which case they have 21 days to call the EGM.

ENigeria Newspaper gathered that the agenda of the EGM was to discuss the removal of Femi Otedola as Chairman of FBN Holdings Plc as well the removal of Mr. Julius B. Omodayo-Owotuga, a Non-executive/Deputy Chief Executive of Geregu Power Plc.

The shareholders claimed that the financial institution has been in turmoil ever since Godwin Emefiele, a former governor of the Central Bank of Nigeria (CBN), allegedly influenced Otedola to acquire a large number of shares, which allowed him to become Chairman of FBN Holdings.

According to a report by THISDAY monitored by ENigeria Newspaper, the former CBN governor had invited the former Chief Executive Officer of FirstBank, Dr. Adesola Adeduntan, to his house in Ikoyi and told him to work with Otedola to ensure he takes over the bank. Which he dutifully did, and subsequently paved the way for Otedola becoming a non-Executive in the first instance, without security clearance from the Department of State Security, DSS and the Economic and Financial Crimes Commission, EFCC.

However, having successfully taken over the bank, the first person Otedola targeted to be kicked out was Adeduntan himself, followed by Tunde Hassan-Odukale, who was the Chairman of First Bank of Nigeria Limited, and subsequently moved against Tosin Adewuyi, whom he side-stepped for the position of CEO despite coming first in the interview conducted by a global recruitment agency.

Instead, he influenced the appointment of the man who came last in the interview, Mr Olusegun Alebiosu, who was said to have since pledged “absolute loyalty” to Otedola and has allowed him to use another of his personal acolyte, a non-Executive Director, Akin Akinfemiwa, to run the bank.

According to the shareholders, with Otedola as Chairman, his personal staff, Omodayo-Owotuga at the Holdco, and yet another personal staff at the bank, Otedola has seized full control of the bank and does as he pleases.
Thus, with the private placement of N360 billion shares, other shareholders fear he would clearly have absolute control and could turn First Bank to his piggy bank without checks, balances and corporate governance.

But for Emefiele, who handed him the bank, the other shareholders contended that, Otedola could not have passed the fit and proper test, having ruined several banks with non-performing loans, which were then sold to AMCON before he got his “sweetheart deal” under former President Goodluck Jonathan and Godwin Emefiele
After ousting Adeduntan, Tosin Adewuyi, an Executive Director would follow and next was a Group Head, Folake Ani-Mumuney, whose only offence was that she carried out a directive of the board to host a send forth party for the retiring CEO, who had been at the helm of affairs in the bank for nine years.

He had earlier removed Ms. Ijeoma Nwogwugwu, a noted journalist, as a non-executive director of a First Bank subsidiary for daring to write a critically acclaimed article, which he considered unfavorable to his ego.

ENigeria Newspaper reports that experts are sounding a warning alarm emphasizing that at the rate in which the deepening crisis that has enveloped First Bank, a possible takeover by the apex bank is imminent, this is to ensure the safety of depositor’s funds amid the crossfire.

Even though a statement released by the bank claimed that the ongoing boardroom crisis “does not in any way impact the operations of the company, and all businesses within the group continue to provide uninterrupted services to customers”, concerns continue to mount that the situation is obviously getting out if hand.

On the other hand, not only is First Bank yet to recapitalize as directed by the apex bank, but it is also not clearly outlining how it plans to raise the N500 billion needed for the exercise, and all of these are due to the ongoing internal crisis which appears not be ending anytime soon.