x

CBN fires First Bank Directors, Reinstates Adeduntan as MD

The Central Bank of Nigeria (CBN) has sacked all board members/directors of First Bank Holding and First Bank Nigeria Limited.

CBN Governor, Godwin Emefiele, announced their query on Thursday when he addressed the media.

Emefiele further announced the reinstatement of Adesola Adeduntan as First Bank Managing Director.

The apex bank declared that the appointment of Gbenga Shobo was done without its approval.

Emefiele said CBN has been involved in management changes involving First Bank in the last 5 years to stem the slide regarding the status of the bank.

The Governor expressed surprise that First Bank effected sweeping changes in executive management without engagement and/or prior notice to the authorities.

He noted that the action sends a negative signal to the market on the stability of leadership on the board and management.

The CBN confirmed First Bank has over 31 million customers, with a deposit base of N4.2trillion, shareholders funds of N618billion and NIBSS instant payment (NIP) processing capacity of 22% of the industry.

Emefiele said the bank maintained healthy operations up until 2016 when the CBN’s target examination revealed grave financial condition with its capital adequacy ratio (CAR) and non-performing loans ratio (NPL) substantially breaching acceptable prudential standards.

The problems, according to him, were caused by bad credit decisions, significant and non-performing insider loans and poor corporate governance practices.

Emefiele added that the shareholders of the bank and FBN Holding Plc lacked the capacity to recapitalize the bank to minimum requirements.

The CBN chief recalled the steps that were taken to stabilize the bank in its quest to maintain financial stability.

“Change of management team under the CBN’s supervision with the appointment of a new Managing Director/ Chief Executive Office in January 2016;

“Grant of the regulatory forbearances to enable the bank work out its non-performing loans through provision for write off of at least N150b from its earning for four consecutive years;

“Grant of concession to insider borrower to restructure their non-performing credit facilities under very stringent conditions;

“Renewal of the forbearances on a yearly basis between 2016 and 2020 following thorough monitoring of progress towards exiting from the forbearance measures.”

Emefiele lamented that despite the significant improvement in First Bank’s financial condition with positive trajectory of financial soundness indicators, the insider related facilities remained problematic.

He disclosed how insiders who took loans, 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 poor financial state.

The CBN’s recent target examination as at December 31, 2020 revealed insider loans were materially non-compliant with restructure terms (e.g. non perfection of lien on shares/collateral arrangements) for over 3 years despite several regulatory reminders.

After a review of the situation, the CBN, with powers under BOFIA 2020, ordered the immediate removal of all directors of FBN Ltd and FBN Holdings Plc.

The apex bank announced the appointment of the following persons as directors in FBN Ltd and FBN Holdings Plc:

For First Bank: Chairman – Tunde Hassan-Odukale; Tokunbo Martins; Uche Nwokedi; Adekunle Sonola; Isioma Ogodazi; Ebenezer Olufowose; Ishaya Elijah Dodo; Sola Adeduntan – Managing Director; Gbenga Shobo – Deputy MD; Remi Oni – ED; Abdullahi Ibrahim – ED.

For FBN Holdings: Chairman – Remi Babalola; Dr. Fatade Abiodun Oluwole; Kofo Dosekun; Remi Lasaki; Dr Alimi Abdulrasaq; Ahmed Modibbo; Khalifa Imam; Sir Peter Aliogo, Urum Kalu ‘UK’ Eke – Managing Director.

Emefiele assured the depositors, creditors, other stakeholders of the bank and all Nigerians its commitment to ensure the stability of the financial system.

Hot this week

Editors Urge Government To Create Safe, Enabling Environment For Journalists

· Ask security agents to find missing Vanguard journalist As...

EXCLUSIVE: Buhari orders probe of Isa Funtua, AMCON over keystone and Etisalat

Following the controversy generated by the leading opposition party,...

6 Signs your boyfriend thinks you are ugly -Take note of No. 2

They say there are three kinds of people; the...

2023: South-East, Middle Belt Forum Endorses Peter Obi

The South-East and Middle Belt Forum has endorsed the...

Tinubu Assures Abuja Residents, No More ” One Chance” Attacks

By Joyce Remi-Babayeju President Bola Tinubu has assured Abuja residents...

INEC Sets August 16 for Bye-Elections in 12 States, Resumes Voter Registration

The Independent National Electoral Commission (INEC) has announced August...

Tinubu Hosts Fubara, Wike, Rivers Lawmakers in Fresh Push for Peace

President Bola Tinubu on Thursday convened a closed-door meeting...

Kaduna Govt, SMEDAN Seal N1 Billion Partnership to Support MSMEs

The Kaduna State Government has signed a ₦1 billion...

President Tinubu Appoints Grace Henry as First Female Chair of Nigerian Legion

President Bola Tinubu has appointed Grace Henry, a 60-year-old...

Former Plateau Governor’s Aide Calls for Unity in PDP Amid Internal Rifts

By Israel Adamu, Jos A media consultant to former Plateau...

Kaduna Journalist Decries Threats to Life Over Report on Security Raids

By Achadu Gabriel, Kaduna Kaduna-based investigative journalist, Mr. Idibia U.A....

Sokoto State Flags Off Landmark Gas Cylinder Distribution Program

By Muhammad Ibrahim, Sokoto The Sokoto State Government, in collaboration...
spot_img

Related Articles

Popular Categories

spot_imgspot_img