CBN Sacks All Directors Of First Bank For Suspicious Appointment Of New MD/CEO

The Central Bank of Nigeria (CBN) has removed all the directors of First Bank of Nigeria Plc and those of First Bank Holding Company. Those sacked include Chairman of First Bank, Chief (Mrs) Ibukun Awosika and the Chairman of First Bank Holding, Oba Otudeko.

The apex bank had queried the Board of the bank for removing Adesola Adeduntan as the Managing Director/Chief Executive Officer and appointing Gbenga Shobo as MD/CEO designate without regulatory approval.

Recall that on Wednesday, April 28, the directors of the bank at its board meeting, removed Adeduntan as its MD and announced the appointment of Gbenga Shobo as its new Managing Director/Chief Executive Officer. The board of directors stated that Shobo’s appointment was with immediate effect and is subject to all regulatory approvals. Read here.

However, at a press briefing held today, April 29, Godwin Emefiele, the governor of the CBN, queried the board of directors’ decision to remove Adeduntan without due consultation with regulatory authorities. Emefiele reinstated Adeduntan as the managing director and chief executive officer of First Bank of Nigeria Limited.

In a letter sent to the bank, the CBN said it was not aware of any wrongdoing or misconduct by Adeduntan that led to his removal, especially as it was done 8 months before the expiration of his tenure in December this year.

The apex bank also faulted the appointment of Abdullahi Ibrahim as deputy managing director, as well as the appointment of Ini Ebong, Segun Alebiosu, Seyi Oyefeso and Bashirat Odunewu, as executive directors. The apex bank, however, directed U.K Eke to remain the group CEO of FBN Holdings Plc.

Emefiele at the press briefing, announced the constitution of an interim board to clean up the large lender and stabilize the company.