CBN sacks directors of First Bank of Nigeria, FBN Holdings Plc; inaugurates new Board

The Central Bank of Nigeria (CBN) has directed the immediate removal of all Directors of First Bank of Nigeria Ltd and FBN Holdings Plc.

 

Mr Godwin I. Emefiele, Governor of the CBN (Nigeria’s apex bank), announced this on Thursday evening, 29th April, 2021.

 

Mr Emefiele said that the move was in the interest of 31 million customers, minority shareholders of First Bank of Nigeria Ltd, while reassuring depositors, creditors and other stakeholders of the bank of its commitment to ensure the stability of the financial system:

#Emefiele says #CBN acted to protect 31 million customers, minority shareholders of First Bank of Nigeria Ltd.

— Central Bank of Nigeria (@cenbank) April 29, 2021

“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,” #Emefiele  said.

 

The CBN Governor, in a press briefing, said that the apex bank had, over the past five years, observed First Bank of Nigeria and discovered that “the bank was in grave financial condition with its capital adequacy ratio (CAR) and non-performing loans ratio (NPL) substantially breaching acceptable prudential standards.

 

“The insiders who took loans in the bank, with controlling influence on the board of directors, failed to adhere to the terms for the restructuring of their credit facilities, which contributed to the financial state of the bank.

 

“…The bank has not also divested its non-permissible holdings in non-financial entities in line with  regulatory directives.”

 

The CBN went on to announce the new appointments as follows:

#CBN appoints Tokunbo Martins, Uche Nwokedi, Adekunle Sonola, Isioma Ogodazi, Ebenezer Olufowose, Ishaya Elijah B. Dodo as Directors of First Bank of Nigeria. #FBN

— Central Bank of Nigeria (@cenbank) April 29, 2021

The apex bank, however, reinstated Mr Sola Adeduntan as Managing Director, First Bank of Nigeria Limited.  Just about 24 hours ago, without the CBN’s authorization, Adeduntan had been removed from office eight months before his tenure was yet to expire on 31st December, 2021 and was replaced with his deputy, Mr Gbenga Shobo.

 

With the CBN’s intervention, Mr Gbenga Shobo has now been re-instated to his previous position as the Deputy Managing Director, while Remi Oni and Abdullahi Ibrahim were appointed Executive Directors.

 

FBN Holdings Plc

While approving the appointment of Remi Babalola as Chairman, FBN Holdings Plc, Dr. Fatade Abiodun Oluwole, Kofo Dosekun, Remi Lasaki, Dr. Alimi Abdulrasaq, Ahmed Modibbo, Khalifa Imam, Sir Peter Aliogo, and UK Eke (Managing Director)  were appointed as Directors.

#CBN appoints Dr. Fatade Abiodun Oluwole, Kofo Dosekun, Remi Lasaki, Dr Alimi Abdulrasaq, Ahmed Modibbo, Khalifa Imam, Sir Peter Aliogo, and UK Eke (Managing Director) as Directors of FBN Holdings Plc

— Central Bank of Nigeria (@cenbank) April 29, 2021

 

Amaka E. Nliam