CBN Dissolves First Bank Board of Directors over Misconduct
The Central Bank of Nigeria (CBN) has approved the appointment of Tunde Hassan-Odukale as Chairman of First Bank of Nigeria Limited (FBN) with Remi Babalola taking over as Chairman of FBN Holdings Plc as board room game gets dirty.
Nigerian apex bank had earlier announced the removal of Mrs. Ibukun Awosika as Chairman of the board of FBN and Mr Oba Otudeko as Chairman of the board of FBN Holdings as it reinstates Adesola Adeduntan as Managing Director; Gbenga Shobo as Deputy Managing Director; and Remi Oni and Abdullahi Ibrahim as Executive Directors of FBN Limited.
Adeduntan was earlier removed by the Awosika-led board and replaced with Shobo as new Managing Director, a move the apex bank condemned as not following due process.
The apex bank made this known in a series of tweets on its twitter handle on Thursday, the action, said CBN Governor, Godwin Emefiele, was to protect 31 million customers and minority shareholders of First Bank.
“First Bank of Nigeria is one of Nigeria’s systemically important banks, given its historical significance, balance sheet size, large customer base and high level of interconnectedness with other financial service providers.
“CBN reassures First Bank of Nigeria depositors, creditors and other stakeholders of the bank of its commitment to ensure the stability of the financial system,” Emefiele said.
The apex bank also announced the appointments of Dr. Fatade Abiodun Oluwole, Kofo Dosekun, Remi Lasaki and Dr Alimi Abdulrasaq as directors of FBN Holdings.
Other directors of FBN Holdings so appointed are, Ahmed Modibbo, Khalifa Imam, Sir Peter Aliogo, and UK Eke, who was appointed as Managing Director.
First Bank Appoints Gbenga Shobo CEO as Adeduntan Retires
Directors of FBN Limited, as announced by the apex, include. Tokunbo Martins, Uche Nwokedi, Adekunle Sonola, Isioma Ogodazi, Ebenezer Olufowose and Ishaya Elijah Dodo.
The CBN had earlier raised concerns over First Bank’s failure to comply with regulatory directives on divesting its interest in Honeywell Flour Mills.
The concerns were contained in a letter dated April 26, 2021 and addressed to Ibukun Awosika, erstwhile Chairman of FBN Limited.
It was in response to their audited International Financial Reporting Standards accounts for the 2020 financial year.
In the letter signed by Director of Banking Supervision, Haruna Mustafa, the apex bank said:
“We further noted that after four years the bank is yet to perfect its lien on the shares of Mr. Oba Otudeko in FBN Holdings which collateralised the restructured credit facilities for Honeywell Flour Mills contrary to the conditions precedent for the restructuring of the company’s credit facility.”
The apex bank instructed First Bank to diversify the equity investments in all non-permissible entities such as Honeywell Flour Mills and Bharti Airtel Nigeria Limited within 90 days.
CBN Dissolves First Bank Board of Directors over Misconduct
