The Central Bank of Nigeria (CBN) Thursday night announced the sack of the entire members of the board of First Bank of Nigeria (FBN) and of FBN Holding.
Governor of CBN, Godwin Emefiele, announced on live television and broadcast from the headquarters of the apex bank in Abuja.
He cited insider abuse, insider credit and breakdown of corporate governance as reasons for the action.
Emefiele also announced the reinstatement of Dr Sola Adeduntan, who was sacked on Wednesday by the disbanded board of FBN, as the Managing Director of the interim Board of the bank.
The Shield Online had previously reported the CBN’s query to First Bank, expressing concern that the appointment of Gbenga Shobo as replacement for Adeduntan was done without the approval of the apex bank. The CBN also claimed that the tenure of the then ousted Adedutan was yet to expire and as such, there was no justification for his removal.
Emefiele in the press briefing stated that the CBN had been keeping close tabs on First Bank Nigeria over the past 5 years having discovered that the bank was in “grave financial condition with its capital adequacy ratio (CAR) and non-performing loans ratio (NPL) substantially breaching acceptable prudential standards.”
According to Emefiele, “The insiders who took loans in the bank, 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 of the bank. The CBN’s recent target examination as at December 31, 2020 revealed that 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. The bank has not also divested its non-permissible holdings in non-financial entities in line with regulatory directives.”
CBN in a series of tweets on Thursday evening via its official Twitter handle also assured “First Bank of Nigeria depositors, creditors and other stakeholders of the bank of its commitment to ensure the stability of the financial system.”
Below is a list of members of the newly constituted interim Boards of the FBN and FBN Holding .
1. Chairman – Tunde Hassan-Odukale
2. Tokunbo Martins
3. Uche Nwokedi
4. Adekunle Sonola
5. Isioma Ogodazi
6. Ebenezer Olufowose
7. Ishaya Elijah B. Dodo
8. Sola Adeduntan – Managing Director
9. Gbenga Shobo – Deputy Managing Director
10. Remi Oni – Executive Director
11. Abdullahi Ibrahim – Executive Director
1.Chairman – Remi Babalola
2.Dr. Fatade Abiodun Oluwole
5.Dr Alimi Abdulrasaq
8.Sir Peter Aliogo
9.UK Eke – Managing Director