All First Bank directors have been fired by the CBN

The Central Bank of Nigeria has fired all the directors of the First Bank of Nigeria, including those of the First Bank Holding Company. The people fired include the Chairman of First Bank, Chief (Mrs) Ibukun Awosika and the Chairman of First Bank Holding, Oba Otudeko.
 

The pinnacles of all commercial banks had queried the Board of the bank for removing Adesola Adeduntan as the Managing Director/Chief Executive Officer and appointing Gbenga Shobo as MD/CEO designate without regulatory approval.

On Wednesday, April 28, at the board meeting, the directors of the bank had removed Adeduntan as its MD and announced the appointment of Gbenga Shobo as its new Managing Director/Chief Executive Officer. The board of directors stated that Shobo’s appointment was with immediate effect and is subject to all regulatory approvals.

However, at a press briefing held today, April 29, Godwin Emefiele, the governor of the CBN, queried the board of directors’ decision to remove Adeduntan without due consultation with regulatory authorities. Emefiele reinstated Adeduntan as the managing director and chief executive officer of First Bank of Nigeria Limited.

In a letter sent to the bank, the CBN said it was not aware of any wrongdoing or misconduct by Adeduntan that led to his removal.

A letter signed by Haruna Mustafa, CBN’s director of banking supervision, reads in part

“The CBN was not made aware of any report from the board indicting the managing director of any wrong-doing 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.

It is also curious to observe that the sudden removal of the MD/CEO was done about eight months to the expiry of his second tenure, which is due on December 31, 2021.”

The apex bank also faulted the appointment of Abdullahi Ibrahim as deputy managing director, as well as the appointment of Ini Ebong, Segun Alebiosu, Seyi Oyefeso and Bashirat Odunewu, as executive directors. The apex bank, however, directed U.K Eke to remain the group CEO of FBN Holdings Plc.

Emefiele at the press briefing, announced the constitution of an interim board to clean up the large lender and stabilize the company.

With the sack of all the directors, First Bank Holdings will now have Remi Babalola as chairman while First Bank Limited will have Tunde Hassan-Odukale as its Chairman.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s