â¢Shareholders weigh options, Otudeko, Odukale and Adenuga in battle for conntrol
By Obinna Chima
The Central Bank of Nigeria (CBN) yesterday queried the board of First Bank Nigeria Limited over the removal of the Managing Director/Chief Executive of the bank, Dr. Adesola Adeduntan, saying the action was without regulatory approval.
The apex bank said the board’s move has âdire implications for the bank and also portends significant risks to the stability of the financial system.â
The central bank stated this in a letter dated April 28, 2021, signed by its Director, Banking Supervision, Mr. Haruna Mustafa, and addressed to the bankâs Chairman, Mrs. Ibukun Awosika, a copy of which was obtained by THISDAY.
A statement by the bank made on Wednesday said Gbenga succeeds Sola Adeduntan, who will be leaving the bank. These decisions take effect from today, 28 April 2021.
Also appointed is Abdullahi lbrahim as Deputy Managing Director, while Mr. Ini Ebong, Mr. Segun Alebiosu, Mr. Seyi Oyefeso and Mrs Bashirat Odunewu were also appointed as Executive Directors.
According to the bank, the decision is subject to all regulatory approvals.
While announcing the appointments, Mrs. Ibukun Awosika, Chairman, First Bank of Nigeria Limited said: “We are proud to announce Gbenga Shobo as our new MD/CEO. His appointment has proven the resilience of our succession planning mechanisms and the value we place on our long-standing corporate governance practices, which underpin the institution’s enduring sustainability and 127-year legacy”
The letter was addressed to the bank’s chairperson, Ibukun Awosika.
Mustafa said that the action was taken without due consultations with the regulatory authorities, especially given the systemic importance of the commercial bank.
He noted that the tenure of Adeduntan has yet to expire.
“The CBN was not made aware of any report from the board indicting the managing director of any wrongdoing or misconduct; there appears to be no apparent justification for the precipitate removal.
“We are particularly concerned because the action is coming at a time the CBN has provided various regulatory forbearances and liquidity support to reposition the bank, which has enhanced its asset quality, capital adequacy and liquidity ratios amongst other prudential indicators.
First Bank appoints new MD/CEO as Adeduntan retires tribuneonlineng.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from tribuneonlineng.com Daily Mail and Mail on Sunday newspapers.
Advertisement
Ibukun Awosika, the bank’s chairman, announced his appointment in a statement on Wednesday.
Shobo will succeed Sola Adeduntan, who will be leaving the bank in accordance with the term limit for chief executives, after leading the bank since January 2016.
“We are proud to announce Gbenga Shobo as our new MD/CEO. His appointment has proven the resilience of our succession planning mechanisms and the value we place on our long-standing corporate governance practices, which underpin the institution’s enduring sustainability and 127-year legacy,” Awosika said.
Advertisement
“The board is confident that Gbenga has the experience and understanding of the bank and the know-how to lead the bank through this next phase of growth, which is focused on positioning First Bank as the pre-