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  • First Bank crisis: Ex-board Chair, Awosika defends decision to sack Adedutan

    First Bank crisis: Ex-board Chair, Awosika defends decision to sack Adedutan

    The Former First Bank Chairman, Mrs. Ibukun Awosika, has insisted that the recently dissolved board under her leadership took the right decision in removing Dr. Adesola Adeduntan as Managing Director/Chief Executive Officer of the bank on Wednesday.

    “As a board, we acted in what we clearly believed to be in the best interest of the bank and we had great plans and aspirations for where the bank could go to in its future, building on all the work that has already been done in the last five plus years,” she said in her first reaction to the dissolution of her board by the Central Bank of Nigeria (CBN) on Thursday.

    The apex bank also reinstated Adeduntan to his position, saying his removal by the former board had a dire consequence for the bank and “portends significant risks to the stability of the financial system.” The CBN said the board acted without due consultation with the regulatory authorities, especially given the systemic importance of First Bank Ltd.

    “The CBN was not made aware of any report from the board indicting the Managing Director of any wrong-doing or misconduct; there appears to be no apparent justification for the precipitate removal,” it said. It immediately reconstituted the board and that of the FBN Holdco formerly headed by Mr. Oba Otudeko.

    However,Awosika in a statement entitled “My FBN Group Journey,” on her Instagram page yesterday said she has “always acted in honour and integrity with the utmost interest of the institution, all our stakeholders and the nation.”

    Her words: “In October 2010, I was appointed to join the board of First Bank of Nigeria. A few months later, I was appointed to chair the board of its start up FBN Life Insurance Limited (a joint venture with Sanlam of South Africa). As its pioneer chairman, I had the privilege of working with a strong management team led by Val Ojumah.

    “Together with the rest of our team we built a company that became profitable in twenty four months and continues to be so. In early 2013, I was moved from FBN Life Insurance Ltd, to assume the chairmanship of FBN Capital working with a brilliant team led by Kayode Akinkugbe as the Managing Director.

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    “We worked hard to build the institution, bought Kakawa Discount House which I was again asked by the group to chair. We eventually merged the companies to create the FBN quest Merchant Bank Group, which I chaired until my appointment as Chairman of First Bank of Nigeria on January 1st 2016.

    “For over five years, I have worked with a dedicated team of board and management, with the support of Central Bank of Nigeria to rebuild and restructure the institution for its future. This included cleaning up non-performing loans, establishing good operational governance systems and processes, building controls and an effective and robust risk management system.

    “I am confident we have brought First Bank of Nigeria to a place where it is more than able to deliver utmost value to its stakeholders and the nation at large. As a board, we acted in what we clearly believed to be in the best interest of the bank and we had great plans and aspirations for where the bank could go to in its future, building on all the work that has already been done in the last five plus years.

    Read Also: Awosika breaks silence after sack as First Bank chair

    “Without a shadow of doubt, I will unequivocally state that I have always acted in honour and integrity with the utmost interest of the institution, all our stakeholders and the nation.

  • First Bank reinstates ‘ousted’ CEO after CBN’s intervention

    First Bank reinstates ‘ousted’ CEO after CBN’s intervention

    First Bank of Nigeria Limited (FBN) on Friday confirmed that Dr Adesola Adeduntan had resumed as the Chief Executive Officer in line with the directives of the Central Bank of Nigeria (CBN).

    TheNewsGuru.com, TNG reports that First Bank has been in the news since Wednesday after its purported removal of Dr. Adeduntan and subsequent appointment of Gbenga Shobo according to a statement released by the board of directors of the bank.

    However, the apex bank would have none of that. It queried and later sacked all the board members of the bank including those of First Bank Holdings for embarking on such decisions without its approval. The CBN also reinstated Adeduntan whom it said still has eight months to complete his tenure.

    Confirming heeding CBN’s directive on Friday, First Bank management Adeduntan has now resumed officially as MD/CEO.

    Read full statement below:

    CORPORATE STATEMENT ON THE NEW BOARD CONSTITUTION

    We refer to the Central Bank of Nigeria Limited (CBN) pronouncement on the reconstitution of the Board of Directors of First Bank of Nigeria Limited.

    Further to the press conference held by the Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele CON on Thursday, 29 April 2021, the Boards of FBN Holdings Plc and First Bank of Nigeria Limited were dissolved and reconstituted, pursuant to its power under Banks and Other Financial Institutions Act (BOFIA) 2020.

    The Board of Directors of First Bank of Nigeria Limited is now comprised as follows:
    1. Mr. Tunde Hassan-Odukale – Chairman
    2. Mrs. Tokunbo Martins
    3. Mr. Uche Nwokedi
    4. Mr. Adekunle Sonola
    5. Ms. Isioma Ogodazi
    6. Mr. Ebenezer Olufowose
    7. Mr. Ishaya Elijah B. Dodo
    8. Dr. Adesola Adeduntan FCA – Managing Director/ Chief Executive Officer
    9. Mr. Gbenga Shobo – Deputy Managing Director
    10. Dr. Remi Oni – Executive Director
    11. Mr. Abdullahi Ibrahim – Executive Director

    Dr. Adesola Adeduntan has since resumed work as CEO in line with the directives of the CBN.
    We can confirm that the Bank is cooperating with the Central Bank of Nigeria and other regulators while the operations of the Bank are not hampered or hindered in any way and are in fact running smoothly.

    We further wish to reassure the public, our esteemed customers and stakeholders in the words of the Governor of the Central Bank in concluding his press conference, “The CBN hereby reassures the depositors, creditors and other stakeholders of the bank of its commitment to ensuring the stability of the financial system. There is therefore no cause for panic amongst the banking public, given that the actions being taken are meant to strengthen the Bank and position it as a banking industry giant.”

    Signed
    Management

  • CBN appoints new board for First Bank of Nigeria, First Bank of Nigeria Holding

    CBN appoints new board for First Bank of Nigeria, First Bank of Nigeria Holding

    The Central Bank of Nigeria (CBN) has approved the appointment of Tunde Hassan-Odukale as Chairman of First Bank of Nigeria Limited (FBN).

    CBN also approved the appointment of Remi Babalola as Chairman of FBN Holdings Plc, a subsidiary of FBN.

    It had earlier announced the removal of Mrs Ibukun Awosika as Chairman of the board of FBN and Mr Oba Otudeko as Chairman of the board of FBN Holdings

    Also announced the reinstatement of Sola Adeduntan as Managing Director; Gbenga Shobo as Deputy Managing Director; and Remi Oni and Abdullahi Ibrahim as Executive Directors of FBN Limited.

    Adeduntan was earlier removed by the Awosika-led board and replaced with Sobo as managing director, a move the apex bank condemned as not following due process.

    The apex bank made this known in a series of tweets on its twitter handle on Thursday.

    The action, said CBN Governor, Godwin Emefiele, was to protect 31 million customers and minority shareholders of First Bank.

    “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.

    “CBN reassures First Bank of Nigeria depositors, creditors and other stakeholders of the bank of its commitment to ensure the stability of the financial system,” Emefiele said.

    CBN also announced the appointments of Dr Fatade Abiodun Oluwole, Kofo Dosekun, Remi Lasaki and Dr Alimi Abdulrasaq as directors of FBN Holdings.

    Other directors of FBN Holdings so appointed are, Ahmed Modibbo, Khalifa Imam, Sir Peter Aliogo, and UK Eke, who was appointed as Managing Director.

    Directors of FBN Limited, as announced by the apex, include. Tokunbo Martins, Uche Nwokedi, Adekunle Sonola, Isioma Ogodazi, Ebenezer Olufowose and Ishaya Elijah Dodo.

    NAN reports that the CBN had earlier raised concerns over First Bank’s failure to comply with regulatory directives on divesting its interest in Honeywell Flour Mills.

    The concerns were contained in a letter dated April 26, 2021 and addressed to Ibukun Awosika, erstwhile Chairman of FBN Limited.

    It was in response to their audited International Financial Reporting Standards accounts for the 2020 financial year.

    In the letter signed by Director of Banking Supervision, Haruna Mustafa, the apex bank said:

    “We further noted that after four years the bank is yet to perfect its lien on the shares of Mr. Oba Otudeko in FBN Holdings which collateralised the restructured credit facilities for Honeywell Flour Mills contrary to the conditions precedent for the restructuring of the company’s credit facility.”

    The apex bank instructed First Bank to diversify the equity investments in all non-permissible entities such as Honeywell Flour Mills and Bharti Airtel Nigeria Limited within 90 days.

  • BREAKING: CBN sacks all board members of First Bank of Nigeria, First Bank of Nigeria Holding

    BREAKING: CBN sacks all board members of First Bank of Nigeria, First Bank of Nigeria Holding

    The governor of the Central Bank of Nigeria, Godwin Emefiele, has just sacked the entire members of the board of First Bank Holding and First Bank Nigeria Ltd.

    The sack was announced on live television, covered by Arise TV and other news channels. Emefiele, in his speech, cited insider abuse, insider credit and breakdown of corporate governance as the reason behind the apex bank’s move.

    Details to follow…..

  • First Bank risks sanctions over ‘unjust’ removal, appointment of new MD/CEO without ‘CBN approval’

    First Bank risks sanctions over ‘unjust’ removal, appointment of new MD/CEO without ‘CBN approval’

    The board of First Bank Nigeria Limited may face sanctions from the Central Bank of Nigeria (CBN) over its removal of Dr. Adesola Adeduntan as Managing Director/Chief Executive Officer and subsequent appointment of Mr. Gbenga Shobo as replacement on Wednesday.

    TheNewsGuru.com, TNG reports that the apex bank in a letter after the news broke of the appointment on Wednesday queried the board of First Bank Nigeria Limited for embarking on such corporate decisions without its approval.

    The apex bank said the board’s move has “dire implications for the bank and also portends significant risks to the stability of the financial system.”

    The central bank stated this in a letter dated April 28, 2021, signed by its Director, Banking Supervision, Mr. Haruna Mustafa, and addressed to the bank’s Chairman, Mrs. Ibukun Awosika.

    CBN also demanded a comprehensive response on the matter from Awosika to be delivered to the banking sector regulator latest 5pm on Thursday (today).

    The CBN noted with concern that the action was taken without due consultation with the regulatory authorities, especially given the systemic importance of First Bank as well as given that the tenure of Adeduntan was yet to expire.

    “The CBN was not made aware of any report from the board indicting the Managing Director of any wrong-doing or misconduct; there appears to be no apparent justification for the precipitate removal.

    “We are particularly concerned because the action is coming at a time the CBN has provided various regulatory forbearances and liquidity support to reposition the bank, which has enhanced its asset quality, capital adequacy and liquidity ratios amongst other prudential indicators.

    “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.”

    According to the central bank, the removal of a sitting MD/CEO of a systemically important bank, “that has been under regulatory forbearance for five to six 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.

    “In light of the foregoing, you are required to explain why disciplinary action should not be taken against the Board for hastily removing the MD/CEO and failing to give prior notice to the CBN before announcing the management change in the media.

    “In the meantime, you are directed to desist forthwith from making any further public/media comments on the matter. Your comprehensive response on the foregoing should reach the Director, Banking Supervision Department on or before 5pm on April 29, 2021,” it added.

    Meanwhile, the banking sector regulator in another letter also signed by Mustafa, titled: “Re: Audited FIRS Accounts for the Financial Year Ended December 31, 2020,” revealed that the bank was yet to divest its interest in HoneyWell Flour Mills, Barti Airtel and other non-permissible interest.
    The Chairman of FBN Holdings, the holding company of First Bank Nigeria Limited, Oba Otudeko is also the Chairman of Honey Well. He used to be the Chairman of Barti Airtel.

    However, the CBN in the letter stated: “We are concerned that the bank has not complied with regulatory directives to divest its interest in Honey Well Flour Mills despite several reminders. We further noted that after four years the bank is yet to perfect its lien on the shares of Mr. Oba Otudeko in FBN Holdco, which collateralised the restructured credit facilities for Honey Well Flour Mills contrary to the conditions precedent for the restructuring of the company’s credit facility.

    “Given the bank’s failure to perfect the pledge and satisfy conditions for regulatory approval, the restructuring has thus been invalidated and the credit facilities now payable immediately.”

    Consequently, the central bank has requested that HoneyWell, “ fully repays its obligations to the bank within 48 hours failing which the CBN will take appropriate regulatory measures against the insider borrower and the bank.”

    It added: “Furthermore, the Bank notes the untenable delay in resolving the long outstanding divestment from Bharti Airtel Nigeria Ltd in line with extant regulations of the CBN.

    “Accordingly, you are required to divest the equity investments in all non-permissible entities such as HoneyWell Flour Mills and Bharti Airtel Nigeria Limited within 90 days. Please you are to forward evidence of compliance in accordance with the timelines above to the Director of Banking Supervision.”

  • JUST IN: First Bank appoints new MD/CEO as Adeduntan retires

    JUST IN: First Bank appoints new MD/CEO as Adeduntan retires

    The Board of Directors of First Bank of Nigeria Limited has approved the appointment of Mr. Gbenga Shobo as its Managing Director/Chief Executive Officer (CEO), effective today (Wednesday).

    Until the appointment, Shobo was the bank’s Deputy Managing Director. Shobo succeeds Mr. Adesola Adeduntan, who will be leaving the financial institution in accordance with its term limits for Chief Executives, after leading the bank since January 2016.

    According to a statement, the appointment is subject to regulatory approval.

    Also appointed was Abdullahi Ibrahim as Deputy Managing Director, while Mr. Ini Ebong, Mr. Segun Alebiosu, Mr. Seyi Oyefeso and Mrs. Bashirat Odunewu, were also appointed as Executive Directors.

    Similarly, there appointments are also subject to regulatory approvals.

    Commenting on the appointment, the Chairman, First Bank, Mrs. Ibukun Awosika said: “We are proud to announce Gbenga Shobo as our new MD/CEO. His appointment has proven the resilience of our succession planning mechanisms and the value we place on our long-standing corporate governance practices, which underpins the institution’s enduring sustainability and the 127-year legacy.

    “I would like to thank Sola for his dedication and efforts during his helm at the bank, and before as Chief Finance Officer. The board and I are grateful for his leadership of the bank over the last five years and a half and believe that the strong foundation created during his term would provide an excellent basis for our continued success. We wish him well in his future endeavours outside the FirstBank Group.”

    The statement explained that Shobo has had a successful career in the bank and elsewhere, culminating in his appointment as Deputy Managing Director. In 2016, prior to his appointment as Deputy Managing Director, he was the Executive Director overseeing the Retail Banking/Public Sector businesses in the Lagos & West Directorate and was hitherto the Executive Director overseeing the Retail Business in the South Directorate.

  • Photo: Ex-bank staff bags 98 years in prison for stealing N49m, $368,000

    Photo: Ex-bank staff bags 98 years in prison for stealing N49m, $368,000

    A former staff of First Bank of Nigeria Limited, Oreoluwa Adesakin, has been handed a cumulative 98 years in prison by Justice Muniru Olagunju of Oyo High Court for fraud.

    Adesakin, female, was found to have committed financial fraud against her employers to the tune of N49,320,652.32 and an additional $368,203.00 belonging to the bank, which she converted to personal use.

    The convict was prosecuted by the Ibadan Zonal Office of the Economic and Financial Crimes Commission (EFCC) on 14-count charges bordering on stealing, forgery, and fraudulent accounting.

    One of the charges read: “That you Oreoluwa Adesakin sometime between the months of May 2013 and November 2013, at Ibadan within the Ibadan Judicial Division, whilst being a staff of First Bank PLC stole the sum of N25,974,116.13 from First Bank PLC MoneyGram Payment Naira Account, the property of First bank PLC.”

    She pleaded not guilty to all the charges, which necessitated her trial.

    Prosecution counsel, Usman Murtala, presented every vital document and witnesses which nailed the convict.

    The judge noted the EFCC amassed a pool of incontrovertible evidence against the convict and did a diligent investigation and prosecution.

    He pronounced Adesakin guilty of all the charges, sentencing her to seven years in prison without an option of fine on each of the 14 counts, which will run concurrently.

    Apart from the jail term, the convict is also to restitute the First Bank, through the EFCC, all the money she stole.

    According to EFCC Head of Media and Publicity, Mr. Wilson Uwujaren, the convict was arraigned April 4, 2014, by the EFCC following a conclusion of investigations against her which arose from a petition from her former employer, dated December 18, 2013.

    The bank alleged in the petition that Adesakin, as its Money Transfer Operator, saddled with the responsibility of effecting payments through Western Union Money Transfer and Money Gram platforms, fraudulently manipulated accounting and withdrew N49,320,652.32 and another $368,203.00 for herself, which the bank only uncovered while reviewing its internal account.

    The EFCC was also able to establish that the convict used part of the proceeds of her crime to acquire landed properties in different parts of Oyo State.

  • UBA, First Bank, Fidelity, others cut offshore monthly spending limit on Naira Card to $100

    UBA, First Bank, Fidelity, others cut offshore monthly spending limit on Naira Card to $100

    The United Bank for Africa (UBA), First Bank of Nigeria (FBN) and Fidelity Bank have joined the list of Nigerian banks that have reduced international spending limits for their customers as the foreign exchange situation in the country continues to bite harder.

    As they face tightening forex liquidity, it will be difficult for banks to meet their dollar commitments, particularly for debit card usage, hence, the need to cut down the spending limits.

    In a message sent to its customers and sighted by TheNewsGuru.com, TNG First Bank announced that it has now limited the amount its customers can henceforth spend for offshore transactions in a month, $100.

    “Spend now and pay later with your Naira Credit Card. Enjoy up to N3,000,000 credit facility, $100 monthly spend limit on international transactions, 45 interest-free days, flexible repayment plan, access to over 29 million channels worldwide, card control and protection using the Card Services feature on FirstMobile App,” the bank said in the notice.

    Equally, fellow tier-one lender, UBA, also announced that it was following the path due to the uncertainties surrounding the forex market which had forced its hand to review its international spending limits.

    The company, in a notice to its customers, said, “In light of the uncertainties in the Foreign Exchange Market, we have had to review international card spending limits.

    “The new applicable limit on your Naira card is $100 (or its equivalent in other foreign currencies) monthly effective August 21, 2020.

    “Whilst we note this significant reduction from your previous spend limit, we would like to reassure that this limit will be revised upwards as the market continues to improve.”

    Also, Fidelity Bank took the same step, putting $100 cap on international transactions via its Naira card.

    The bank stated, “Please be informed that the spending limit for international transactions on our Fidelity Naira Visa and MasterCard is now $100 monthly.

    “This means that your card can be used on Point-of-Sale (POS), WEB and ATM for a cumulative transaction value of $100 monthly.”

    In similar vein, Ecobank Nigeria also confirmed that a $100 monthly limit has been placed on international spending using its cards.

    TNG recalls that Guaranty Trust Bank (GTBank) had two weeks ago slashed the international spending limit on its Naira Mastercard by 80 per cent to $100 per month from $500 it first reduced it to earlier in the year.

    It was also reported that Stanbic IBTC Bank said its customers will only be able to spend $500 per month in terms of offshore card transactions and placed a monthly limit of $100 on withdrawals.

    Another tier one bank, Zenith Bank Plc, announced a temporary suspension of the use of debit cards for cash withdrawals abroad while it slashed the monthly spending limit for international card users to $200.

  • [UPDATE] Bloody bank robbery in Ondo: How robbers killed policemen, customers in First Bank, Polaris

    [UPDATE] Bloody bank robbery in Ondo: How robbers killed policemen, customers in First Bank, Polaris

    Policemen and bank customers were among people killed yesterday after daredevil robbers attacked First Bank and Polaris Bank in Ile-Oluji community, headquarters of Ile-Oluji/Oke-Igbo Local Government Area of Ondo State.

    Although the number of dead people were yet unknown, eyewitnesses claimed that two policemen and two bank customers were among those mowed down by the robbers. The robbers were said to have opened fire as it on a movie set.

    An undisclosed number of people were also said to have been injured during the operation. According to eyewitnesses, the gunmen stormed the First Bank located at the front of the palace of the monarch of the town, which also has the community’s market beside it, before moving to Polaris Bank at about 4: pm.

    During the operation, residents of the community scampered for safety as the robbers shot sporadically into the air and at any moving object.

    It was further learnt that when the robbers stormed the banks, they had immediately shot the policemen attached to the banks. They then used dynamites to blow up the security doors of the banks.

    An eyewitness said: “The robbers operated unhindered during the operation before the arrival of soldiers. But these soldiers came only after the robbers had left with their loot.”

    The identities of those killed were unknown as at the time of filing this report.

    The Ondo State Police Public Relations Officer (PPRO), a Chief Superintendent of Police (CSP), Femi Joseph, while confirming the attack, disclosed that the number of casualties was still unknown.

    The PPRO claimed that the robbers could not access the vault of Polaris Bank, while the situation at First Bank was unknown. He disclosed that policemen had been deployed on the scene of the incident. Meanwhile, it was also gathered that local hunters were on the trail of the robbers.

  • First Bank speaks on staff’s involvement in foiled robbery at Abuja branch

    First Bank of Nigeria Limited has released a Corporate Statement regarding the alleged role of a staff of one its Abuja branches where a five-man gang of armed robbers had invaded and were promptly rounded up and arrested by a combined team of policemen and soldiers.

    Below is the statement signed and made available by Folake Ani-Mumuney, Group Head, Marketing & Corporate Communications of the bank.

    ”We are aware that a customer service executive assigned to us by one of our vendors is helping the police with their investigations into the attempted robbery that happened last week in one of our branches in Abuja.

    We remain grateful that none of our staff or customers lost their lives during the incident.

    We will, however, refrain from commenting further at this time until the relevant authorities conclude their investigations and we urge all to cooperate fully to enable seamless investigations.

    As a responsible organisation that has built trust on the pillar of security and safety for over 125 years, continuous improvement involves taking learnings even from unfortunate situations to further strengthen our security protocols.”