The Central Bank of Nigeria (CBN) has relieved entire board members of First Bank Nigeria Ltd and First Bank of Nigeria Holdings Plc of their duties over alleged backdoor appointment of the lender’s new Managing Director/Chief Executive Officer.
The development was said to be among the apex bank’s oversight functions aimed at regulating activities of commercial banks across the country.
The CBN actions were said to have followed the removal of the bank’s former boss, Adesola Adeduntan as the MD and replaced with Gbenga Shobo as MD/CEO designate without regulatory approval.
The CBN Governor, Godwin Emefiele, who announced the director removals on Thursday evening, said that the move had become imperative to ensure the apex bank effectively manages the crisis rocking the oldest commercial bank in Nigeria.
Aside from announcing the directors’ removal, Emefiele also reinstated Adeduntan as the MD/CEO of the bank.
“Following further review of the situation and in order to preserve the stability of the bank so as to protect minority shareholders and depositors, the management of the CBN, in line with its powers conferred on it by the Banks and Other Financial Institutions Act 2020, has approved and hereby directs as follows:
“Immediate removal of all the directors of First Bank of Nigeria Limited and First Bank of Nigeria Holdings Plc. CBN reassures First Bank of Nigeria depositors, creditors and other stakeholders of the bank of its commitment to ensuring the stability of the financial system.
“CBN approves appointment of Remi Babalola as Chairman FBN Holdings Plc. 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
“CBN approves appointment of Tunde Hassan-Odukale as Chairman of First Bank of Nigeria Limited. CBN appoints Tokunbo Martins, Uche Nwokedi, Adekunle Sonola, Isioma Ogodazi, Ebenezer Olufowose, Ishaya Elijah B. Dodo as Directors of First Bank of Nigeria.
“CBN reinstates Sola Adeduntan as Managing Director; Gbenga Shobo as Deputy Managing Director; and Remi Oni and Abdullahi Ibrahim as Executive Directors of First Bank of Nigeria Limited.”