Apparently dissatisfied with the explanations offered by the group regarding its sack of Dr. Adesola Adeduntan as chief executive of First Bank of Nigeria Limited, its flagship and other alleged malpractices, the Central Bank of Nigeria (CBN), on Thursday wielded the big stick, sacking Oba Otudeko, Chairman of FBN Holdings Plc.
CBN, while reinstating Adeduntan, also fired Mrs. Ibukun Awosika, chairman of the bank, as well as other directors of the group, except the MD, Uke Kalu Eke.For First Bank of Nigeria Limited, besides Adeduntan, the DMD, Gbenga Sobo was retained, while Tunde Hassan Odukale was appointed chairman, replacing Mrs. Ibukun Awosika.
CBN, while reinstating Adeduntan, also fired Mrs. Ibukun Awosika, chairman of the bank, as well as other directors of the group, except the MD, Uke Kalu Eke.For First Bank of Nigeria Limited, besides Adeduntan, the DMD, Gbenga Sobo was retained, while Tunde Hassan Odukale was appointed chairman, replacing Mrs. Ibukun Awosika.
Addressing a press conference monitored live from Lagos, Godwin Emefiele named Remi Babalola, a one-time executive director of the bank and later Minister of State, Finance as a replacement for Otudeko.
Other directors of FBN Holdings as announced by the apex bank are: Dr. Fatade Abiodun Oluwole, Kofo Dosekun Remi Lasaki, Dr Alimi AbdulRazak, Alhaji Ahmed Modibbo, Alhaji Khalifa Imam, Peter Aliu, Uke Kalu Eke, MD
For the bank:Tunde Hassan Odukale- Chairman, among others
The sack was also announced on live television, covered by Arise TV and other news channels. Emefiele, in his speech monitored in Lagos cited insider abuse, insider credit and breakdown of corporate governance as the reasons behind the apex bank’s move.
CBN had in a letter dated 26th April 2021 and addressed to Ibukun Awosika, the former Chairman of First Bank Nigeria Limited, in response to their audited International Financial Reporting Standards accounts for the financial year that ended 2020, the Central Bank of Nigeria raised its concerns that First Bank of Nigeria had not complied with regulatory directives on divesting its interest in Honeywell Flour Mills despite several reminders.
Specifically CBN has also moved against the former chairman of FBN Holding Plc, Oba Otudeko who also is the owner of Honey Well Flour Mills as the regulator directed First Bank Ltd. to recover the debt owed by his flour mills within 48 hours or face regulatory sanction.
In the letter signed by the CBN’s Director of Banking Supervision, Haruna B. Mustafa, the Apex bank said: “We further noted that after 4 years the bank is yet to perfect its lien on the shares of Mr. Oba Otudeko in FBN Holdco which collateralized the restructured credit facilities for Honeywell Flour Mills contrary to the conditions precedent for the restructuring of the company’s credit facility.
CBN stated that for failure to perfect the pledge and satisfy the condition for regulatory approval, such restructuring has been terminated and the credit facilities now payable immediately.Consequently, the CBN issued an ultimatum of 48 hours that was meant to elapse on the 28th of April for Honeywell Flour Mills to fully repay its obligations to First Bank Nigeria as the failure to do so could cause the apex bank to take regulatory measures against the insider borrower and the bank.
CBN in its words also “noted the untenable delay in resolving the long outstanding divestment from Bharti Airtel Nigeria Ltd in line with extant regulations of the CBN.”
Furthermore, the Apex Bank instructed First Bank Nigeria to diversify the equity investments in all non-permissible entities such as Honeywell Flour Mills and Bharti Airtel Nigeria Limited within 90 days.
Prior to Thursday’s trading session, the Tier 1 bank was trading at N7.40 within a striking distance to its 52 weeks high of N9 with a market capitalization standing at N265.6 billion; and Honeywell Flour Mills was priced at N1.33 with a market value of N10.55 billion.
CBN stated that for failure to perfect the pledge and satisfy the condition for regulatory approval, such restructuring has been terminated and the credit facilities now payable immediately.Consequently, the CBN issued an ultimatum of 48 hours that was meant to elapse on the 28th of April for Honeywell Flour Mills to fully repay its obligations to First Bank Nigeria as the failure to do so could cause the apex bank to take regulatory measures against the insider borrower and the bank.
CBN in its words also “noted the untenable delay in resolving the long outstanding divestment from Bharti Airtel Nigeria Ltd in line with extant regulations of the CBN.”
Furthermore, the Apex Bank instructed First Bank Nigeria to diversify the equity investments in all non-permissible entities such as Honeywell Flour Mills and Bharti Airtel Nigeria Limited within 90 days.
Prior to Thursday’s trading session, the Tier 1 bank was trading at N7.40 within a striking distance to its 52 weeks high of N9 with a market capitalization standing at N265.6 billion; and Honeywell Flour Mills was priced at N1.33 with a market value of N10.55 billion.
