â¢Moves to recapitalise bank
Obinna Chima in Lagos and James Emejo in Abuja
In one fell swoop yesterday, the Central Bank of Nigeria (CBN) removed, effective immediately, all directors of First Bank Nigeria Limited and those of its parent company, FBN Holdings Plc to stave off a boardroom crisis that led to the shortlived retirement of its Managing Director/Chief Executive Officer, Dr. Adesola Adeduntan, on Wednesday.
However, the CBN Governor, Mr. Godwin Emefiele, at a press conference in Abuja, announced the reinstatement of Adeduntan.
He said the central bank took the actions in order to preserve the stability of the bank and protect minority shareholders and depositors.
The management of
FBN Holdings PLC, the parent company of First Bank, says the holding company and the bank will cooperate with the new directive from the Central Bank of Nigeria.
The company made this known on Friday through a corporate disclosure to the Nigerian Exchange Limited. The statement was signed by the company secretary, Seye Kosoko.
The regulator sacked the board of the bank and its holding company on Thursday, in a dramatic move that came a day after the bank named a new managing director.
First Bank, Nigeria’s premier bank, has for years been plagued by “bad credit decisions, significant and non-performing insider loans and poor corporate governance practices”, the CBN said Thursday.
Punch Newspapers
Sections
Okechukwu Nnodim, Abuja
Okechukwu Nnodim, Abuja
Published 30 April 2021
The Central Bank of Nigeria on Thursday fired all the directors of First Bank of Nigeria Limited and First Bank of Nigeria Holdings Plc and appointed new persons to fill the positions.
CBN Governor, Godwin Emefiele, announced the removal of the First Bank directors at a press briefing in Abuja.
He said the decision was taken by the management of CBN, the apex regulator of Nigeria’s financial sector, following the query which the CBN had earlier issued the Board of First Bank for removing Adesola Adeduntan as the Managing Director/Chief Executive Officer, without regulatory approval.
Dr Adesola Adeduntan, Chief Executive Officer, FirstBank Nigeria Limited. The Central Bank of Nigeria (CBN), yesterday, sacked the boards of First Bank Nigeria Limited and its holding company, FBN Holdco, citing insider abuse and corporate governance breakdown as reasons. The apex bank also set up interim boards, reinstalling the ousted Managing Director/ Chief Executive, Dr. Sola Adeduntan. The interim board chairman of the bank, according to CBN, will be Tunde Hassan-Odukale. Other members of the bank subsidiary are Tokunbo Martins, Uche Nwokedi, Adekunle Sonola, Isioma Ogodazi, Ebenezer Olufowose, Ishaya Elijah Dodo, Gbenga Shobo, Remi Oni and Abdullahi Ibrahim. The board of the holding company is chaired by Remi Babalola while the managing director is U.K. Eke. Other members are Dr. Fatade Abiodun Oluwole, Kofo Dosekun, Remi Lasaki, Dr. Alimi Abdulrasaq, Ahmed Modibbo, Khalifa Imam and Peter Aliogo.
“We can confirm that the bank is cooperating with the Central Bank of Nigeria and other regulators while the operations of the Bank are not hampered or hindered in any way and are in fact running smoothly.
“We further wish to reassure the public, our esteemed customers and stakeholders in the words of the Governor of the Central Bank in concluding his press conference,” said the statement.
The CBN governor had earlier said, “The CBN hereby reassures the depositors, creditors and other stakeholders of the bank of its commitment to ensuring the stability of the financial system.”
Also according to the management of First Bank, ”there is, therefore, no cause for panic amongst the banking public, given that the actions being taken are meant to strengthen the bank and position it as a banking industry giant”. (NAN)