CBN Sacks Awosika, Otudeko, Appoints New Board For First Bank

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 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 the bank.
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 as CBN Governor, Godwin Emefiele, said the action was to protect 31 million customers and minority shareholders of the 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 ensuring the stability of the financial system,” Emefiele said.
CBN also announced the appointments of Fatade Abiodun Oluwole, Kofo Dosekun, Remi Lasaki and Alimi Abdulrasaq as directors of FBN Holdings. Others are, Ahmed Modibbo, Khalifa Imam, Peter Aliogo, and U.K. Eke, who was appointed 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.
It was reported 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 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.