BEVERLY HILLS, May 02, (THEWILL) – Less than 48 hours after the Boards of First Bank of Nigeria (FBN) Holdings Plc and First Bank Limited were suddenly dissolved by the Central Bank of Nigeria (CBN), the first generation bank has issued a statement on the current structure of the Boards.
According to the bank, the Board of Directors of First Bank of Nigeria Limited now comprises of Mr. Tunde Hassan-Odukale as Chairman, Mrs. Tokunbo Martin’s, Mr. Uche Nwokedi, Mr. Adekunle Sonola, Ms. Isioma Ogodazi, Mr. Ebenezer Olufowose and Mr. Ishaya Elijah B. Dodo.
Others are Dr. Adesola Adeduntan as Managing Director/ Chief Executive Officer, Mr. Gbenga Shobo as Deputy Managing Director, Dr. Remi Oni as Executive Director and Mr. Abdullahi Ibrahim as Executive Director.
In an official statement issued Friday by First Bank, it stated that “further to the press conference held by the Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele CON on Thursday, 29 April 2021, the Boards of FBN Holdings Plc and First Bank of Nigeria Limited were dissolved and reconstituted, pursuant to its power under Banks and Other Financial Institutions Act (BOFIA) 2020.
According to First Bank, Dr Adesola Adeduntan has since resumed work as CEO in line with the directives of the CBN.
“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”, First Bank added.
Meanwhile, members of Nigeria shareholders’ associations have expressed divergent views on the sudden dissolution of the boards of both First Bank of Nigeria (FBN) Holdings Plc and First Bank Limited by the Central Bank of Nigeria (CBN).
Leaders of the organised investors’ groups who spoke to THEWILL also differed in the decision of the CBN to reinstate Dr Sola Adeduntan as managing director of First Bank Limited, twenty-four hours after the bank announced his removal and the appointment of Mr Gbenga Shobo as Adeduntan’s successor.
The National President, Progressive Shareholders Association of Nigeria, Mr Boniface Okezie, described the CBN’s action as inappropriate and setting a wrong precedent.
He argued that the CBN should have directed First Bank to reverse the appointment of Mr Shobo if it did not follow due process because the board has the authority to decide on who to retain or remove.
“The CBN has no right to dissolve the board of the Holding Company because it is a different entity from First Bank Limited which is a subsidiary of the Holco (Holdings Company).
“The board has to discharge its responsibility to the shareholders because there is no smoke without fire.
“If the board has strong reasons to remove the managing director after the AGM, there is nothing wrong about that because it is acting within its regulatory authority,” Okezie said in a telephone chat.
“What the CBN has done amounts to usurping the powers of the board; it has no powers to dissolve the board of the Group as this is likely to affect investors’ confidence in the bank.
“This will lead to a run on the bank and people will lose confidence in the Holco which is not good for an economy that is severely challenged,” Okezie said .
On her part, the National Co-ordinator, Pragmatic Shareholders Association of Nigeria (PSAN), Mrs Bisi Bakare, argued that the CBN had the right to dissolve the board of First Bank Limited but not that of FBN Holdings Plc.
She expressed surprise at the development which happened barely forty-eight hours after their last AGM of the bank.
“We are surprised at this development because we were all at the AGM on Tuesday and the board did not bring any matter against the MD to the notice of the shareholders.
“I can’t see the hurry in removing Adeduntan when he still has about eight months to serve.
“I believe he must have done something that did not please Oba Otudeko who is chairman (of FBNH Plc); but Oba Otudeko is not the owner of the bank.
“It is quite unfortunate because Adeduntan has turned that bank around after many years that the bank was just struggling.
“I support the dissolution of the board of First Bank Limited by the CBN, if there is a strong reason for that; but CBN has no right to dissolve the board of FBN Holdings because it is not part of the apex bank’s regulatory entity.
Alhaji Mukhtar Mukhtar, Chairman, Trusted Shareholders’ Association condemned the action of the CBN which he described as wrong and unconstitutional. Mukhtar told THEWELL that the shareholders’ groups would confront the CBN on the development because, “you can’t sack a whole board because of one man.”
About the Author
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
