Home Business CBN sacks board of First Bank, returns Adeduntan as Managing Director

CBN sacks board of First Bank, returns Adeduntan as Managing Director


The boardroom rumbling at the First Bank Holdings came to a head Thursday as the Central Bank of Nigeria fired the entire members of the board of the bank.

The CBN also reinstated Adeduntan as the MD/CEO of the bank.

Before it wielded its big stick, the apex bank had queried the Board of the bank for removing Adesola Adeduntan as the Managing Director/Chief Executive Officer, as well as appointing Gbenga Shobo as MD/CEO designate without regulatory approval.

CBN 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 regulators had ordered the First Bank to divest from businesses owned by Oba Otudeko, but rather than do so, the board moved to sack Adeduntan.

In a letter dated April 26, 2021 with serial No: BSD/GBB/CON/FBN/01/028 titled RE: AUDITED IFRS ACCOUNTS FOR THE FINANCIAL YEAR ENDED DECEMBER 31, 2020, the CBN expressed its concern that First Bank has not complied with regulatory directives to divest its interest in Honey Well Flour Mills despite several reminders.

“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 removal of a sitting MD/CEO of a systematically important bank that has been under regulatory forbearance for 5 to 6 years without prior consultation and justifiable basis has dire implications for the bank and also portends significant risks to the stability of the financial system.

The CBN gave the Bank twenty-four hours to respond to the query and failure to do so will attract penalty.

But at a briefing today, CBN Governor, Godwin Emefiele, announced the sacking of all members of the board of the bank for the supposed affront.

The bank made new appointments for the board of First Bank Ltd and First Bank Holdings.

FBN Holdings new directors are Remi Babalola (Chairman), Tokunbo Martins, Uche Nwokedi, Adekunle Sonola, Dr Fatade Abiodun Oluwole, Kofo Dosekun, Remi Lasaki, Dr Alimi Abdulrazaq, Ahmed Modibbo, Khalifa Imam, Peter Aleogho, U. K. EKE (Managing Director) .