By Juliet Aliwo.
A group of shareholders holding 10 percent of First Bank of Nigeria Holdings Plc. has initiated a move to remove chairman Femi Otedola, citing allegations of fraud and governance concerns.
The shareholders have formally requested an Extraordinary General Meeting (EGM) to be convened within 21 days, in accordance with Section 215 (1) of the Companies and Allied Matters Act (CAMA).
According to the shareholders, Otedola’s ascension to the chairmanship was facilitated by significant share acquisitions influenced by the former Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele. They allege that the bank’s former CEO, Adesola Adeduntan, played a role in Otedola’s takeover, which they claim was directed by Emefiele.
The shareholders further contend that Otedola assumed the role of non-executive chairman without the necessary security clearances from the State Security Service (SSS) and the Economic and Financial Crimes Commission (EFCC). Following his takeover, Otedola reportedly dismissed several key executives, including Adeduntan and Tunde Hassan-Odukale, the former chairman, along with other senior staff members who were critical of his leadership.
Concerns have been raised that Otedola’s control over the bank has intensified, with allegations that he has positioned personal employees in key roles. Stakeholders fear that a proposed private placement of N360 billion in shares could grant him unchecked control over the bank, undermining corporate governance.
Critics argue that Otedola would not have passed the necessary fit and proper test to lead the bank if not for Emefiele’s influence, citing his previous involvement in the collapse of several banks due to non-performing loans sold to the Asset Management Corporation of Nigeria (AMCON).
In a related development, the African Export-Import Bank (Afreximbank) has reportedly extended a loan of $45 to $50 million (approximately N90 billion) to Otedola. Sources indicate that this funding could facilitate his control during the anticipated N360 billion private placement. However, some shareholders advocate for a rights issue or public offering instead of a private placement, expressing concerns that Otedola’s preference for the latter is aimed at consolidating his control over the institution.
This call for Otedola’s removal follows a recent restructuring at First Bank, which resulted in the layoff of approximately 100 senior staff members, including top executives, as part of a corporate repositioning strategy under the leadership of newly appointed Managing Director and CEO Olusegun Alebiosu, who took office in June 2024.
