A group of shareholders is sounding the alarm about serious problems at FBN Holdings Plc, the company that owns First Bank of Nigeria Limited. They are worried that if these issues with management and strategy are not resolved soon, the bank could face a crisis that might lead to its downfall, government intervention, and big financial losses for those who have invested in it.
Mr. Patrick Ajudua, the National Chairman of the New Dimension Shareholders Association, highlighted the need for urgent action from regulators during a recent interview with reporters. He stated that it is the responsibility of the regulatory bodies to make sure that all rules and laws are followed in dealing with the ongoing issues at FBN Holdings. He warned that if they don’t step in, it could lead to the bank collapsing, which would ultimately result in a government takeover and a loss of investments for shareholders.
FBN Holdings Plc is one of the oldest and largest banks in Nigeria, but it has been facing increasing problems with its governance—essentially how the bank is managed. These issues have shaken investor confidence and raised fears about the bank’s future stability.
Recently, a group of shareholders who own 10 percent of the company’s shares formally requested an Extraordinary General Meeting (EGM). They did this based on a specific law that allows shareholders to call for such a meeting. At this meeting, they want to discuss important matters, including the removal of Group Chairman Mr. Femi Otedola and non-executive director Mr. Julius B. Omodayo-Owotuga.
The shareholders have accused Otedola of becoming chairman with the help of the former Governor of the Central Bank of Nigeria, Godwin Emefiele, who they say supported Otedola’s purchase of a significant number of shares. They believe this situation has thrown the bank’s management into disarray, causing instability and conflicts among executives.
They also raised concerns about the firing of former CEO Dr. Adesola Adeduntan, the sidelining of another executive, Tunde Hassan-Odukale, and the alleged ignoring of top candidates for important leadership roles.
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In response to these accusations, FBN Holdings Plc released a statement on Thursday, assuring everyone that the ongoing disputes will not affect how the bank operates. They emphasized their commitment to good management practices and pointed out that their financial performance has been improving, along with their market value.
The bank stated, “These issues do not impact our operations in any way, and all our services to customers continue without interruption. We are taking all necessary steps to protect the interests of the company and its subsidiaries.”
The ongoing crisis has led to calls for action from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC), which are the regulatory bodies overseeing financial institutions in the country. Shareholders are urging these regulators to enforce the rules, resolve the disputes, and ensure the bank remains stable for the sake of Nigeria’s financial system.
Ajudua added, “We have consistently encouraged all parties involved to prioritize the survival of the bank over personal interests and to find peaceful solutions.”
The resolution of these problems at FBN Holdings is essential not only for the bank itself but also for maintaining investor trust and protecting the wider financial sector in Nigeria.
As everyone waits to see what happens next, the focus is on the regulatory authorities to restore stability and uphold good management practices. The outcome of this situation will be a crucial test for the strength of Nigeria’s banking industry and its ability to handle governance challenges effectively.
The CBN and SEC are being urged to act quickly and decisively to bring stability back to FBN Holdings Plc.
