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Why Chairmen, Directors Of First Bank Holdings, First Bank Plc Were Removed, CBN

By
Ola Akinola
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The Central Bank of Nigeria (CBN) on Thursday removed Mr. Oba Otudeko and Mrs. Ibukun Awosika as Chairman of First Bank Holdings Company and Chairman, First Bank of Nigeria Plc respectively.

The bank also removed all the directors of the bank and the holding company.

At a press conference in Abuja, the CBN Governor, Mr. Godwin Emefiele, said Otudeko on three occasions rejected his entreaties not to remove Mr. Sola Adeduntan as managing director of the bank without making recourse to CBN, which has been providing regulatory forbearance to since 2016.

Emefiele stated that : “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 three years despite several regulatory reminders.

“The bank has not also divested its non-permissible holdings in non-financial entities in line with regulatory directives.”

The governor, who acknowledged the ordinary powers of the board to appoint or remove the managing director, however, stated that with substantial stake of CBN, it should have been taken along when such decision was being considered.

He noted that considering the regulatory forbearance and intervention of CBN since 2016, “It was therefore surprising for the CBN to learn through media reports that the board of directors of FBN, a systemically important bank under regulatory forbearance regime, had effected sweeping changes in executive management without engagement and/or prior notice to the regulatory authorities.

“The action by the board of FBN sends a negative signal to the market on the stability of leadership on the board and management and it is in light of the foregoing that the CBN queried the board of directors on the unfortunate developments at the bank.

The CBN governor added that First Bank maintained healthy operations up until 2016 financial year when the CBN’s target examination revealed that it was in grave financial condition with its capital adequacy ratio (CAR) and non-performing loans ratio (NPL) substantially breaching acceptable prudential standards.

According to him, “The problems at the bank were attributed to bad credit decisions, significant and non-performing insider loans and poor corporate governance practices.

“The shareholders of the bank and FBN Holdings Plc also lacked the capacity to recapitalize the bank to minimum requirements. This conclusions arose from various entreaties by the CBN to them to recapitalise.

The CBN stepped in to stabilise the bank in its quest to maintain financial stability, especially given FBN’s systemic importance as enumerated earlier. Regulatory action taken by the CBN in this regard included:

‘Change of management team under the CBN’s supervision with the appointment of a new “Managing Director/ Chief Executive Office in January 2016.

‘Grant of the regulatory forbearances to enable the bank work out its non-performing loans through provision for write off of at least N150b from its earning for four consecutive years.

Grant of concession to insider borrower to restructure their non-performing credit facilities under very stringent conditions

‘Renewal of the forbearances on a yearly basis between 2016 and 2020 following thorough monitoring of progress towards exiting from the forbearance measures.

“The measures had yielded the expected results as the financial condition of FBN improved progressively between 2016 when the forbearance was initially granted to the current financial year.

“For instance, profitability, liquidity and CAR improved whilst NPL reduced significantly.

Notwithstanding the significant improvement in the bank’s financial condition with positive trajectory of financial soundness indicators, the insider related facilities remained problematic.

“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.”

Kano Health Management Board Sacks Staffs Over Rape, Abortion

By
Ebenezer Adurodija
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0

The authorities of Kano Primary Health Care Management Board on Friday says it has relieved no fewer than 4 staffs for gross misconduct bothering on rape, and illegal abortion.

In a statement that was made available to newsmen by the Board’s Public Relations Officer Maikudi Muhammad Marafa, said the affected staff were found guilty by a Disciplinary panel.

He identified the staff via their civil service number to include KNLG 32323 from Dala who was found guilty of committing rape in one of its facility at Kurnar Asabe Primary Health Care.

Similarly, two other sacked staff with service numbers KNLG 09068 and KNLG 018423 from Gezawa Local Government were said to specializes in using staff Information to obtained loan without their consent , while KNLG 04608 from Gwarzo local governments was found guilty of conducting private practice and abortion.

The statement warned that “PHCMB under Dr. Tijjani Usman will not condone any misconduct from any staff. Staff are expected to carry out their responsibilities diligently, effectively and in accordance with the civil service rules and regulations”.

Mr. Marafa revealed that the recommendations, and decisions by the Governing Board and the Disciplinary Advisory Committee constituted to investigate the affected staff has been upheld by the Board.

The statement therefore advised staff to abide by the rules and regulations governing the state civil services rules.

Insecurity : Ortom’s Persistent Attack On Me Painful, Says Buhari

By
Ola Akinola
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0
Muhammadu_Buhari,_President_of_the_Federal_Republic_of_Nigeria
Muhammadu_Buhari,_President_of_the_Federal_Republic_of_Nigeria

President Muhammadu Buhari has expressed disappointment over the continued attack on him and his administration by the Benue Governor, Samuel Ortom, over recent killings in the state.

This was made known in a statement by his Senior Special Assistant on Media and Publicity, Mallam Garba Shehu, President Buhari also advised political leaders to desist from making comments that further divide the country.

According to him, the rising level of incidences, especially the killings and violence in various parts of the country, call for collaboration with security agencies.

Ortom had accused Buharis of having no interest in protecting Nigerians, following recent killings in his state, particularly the attack on an Internally Displaced Persons (IDP) camp where seven persons were killed by suspected killer herdsmen.

Buhari , however, expressed his condolences to families who lost their loved ones in the recent spate of killings in the state.

President Buhari is deeply pained by the terrible acts of violence happening not only in Benue State but also in other parts of the country and expects that the law enforcement agencies will go to every possible extent to catch the perpetrators of these heinous acts and bring them to justice.

According to him, “The lives of fellow citizens should not be desecrated by deploying them in political diatribe, which unfortunately appeared to be the intent of the string of emotional attacks and blame laid at the doors of the President for those killings by Governor Ortom.

“President Buhari took an oath to defend the life and property of every citizen, a duty he takes seriously and is committed to ensuring.

“Those citizens regardless of their affiliations, who either incite, sponsor or are proven to be abettors of these atrocities will face the law squarely and be answerable for their crimes against our fellow citizens and nation.

“President Buhari continuously stresses that the strength of our country lies in our diversity in faith, culture, and traditions and attempts to sharpen the divide between northern and southern Nigeria, between Muslims and Christians, and between communities that have coexisted for centuries should be frowned upon and resisted.

He continued; “As Nigerians, we accuse colonial rulers of the policy of divide and rule. Today, it is our own leaders who put region against region, religion against religion, ethnic group against ethnic group and community against community.

“The future of Benue State and indeed that of the entire country lies in harmony and the respect for law, order, and the constitution. It is the only way to achieve progress and development.

While the President will continue to keep security, police and the armed forces on their toes to be on top of their act in troubled parts of the country, the situation in the states will greatly be helped by everyone working together because that is the foundation on which progress and prosperity can be achieved.

“Benue under the Ortom administration ought to cooperate with the Federal Government in the implementation of a number of national strategic programs in addressing underlying issues militating against peace, progress and development.

“This can still get done when the interest of the people is placed above all other interests. A government voted into office by the people, should treat the people as its masters and not as its servants,” the statement reads.

Hassan Odukale Replaces Awosika as First Bank Chairman

By
Ola Akinola
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0

The Central Bank of Nigeria on Thursday, wielded its big stick on one of Nigeria’s oldest banks, First Bank of Nigeria Limited, and sacked all the board members of the bank including its Chairman, Board of Directors, Ibukun Awosika.

Recall Awosika was appointed First Bank Chairman in September 2015, making her one of the first women to hold the esteemed position.

The apex bank on Thursday ,however announced the immediate appointment of Tunde Hassan-Odukale as Chairman of First Bank. Before his appointment, Hassan-Odukale was the Managing Director of Leadway Assurance Company.

The re-organisation of First Bank by the regulator was not unconnected to the removal of Adesola Adeduntan as the Managing Director/Chief Executive Officer of the bank and the appointment of Gbenga Shobo as MD/CEO designate without regulatory approval. CBN had earlier queried the Board of the bank over the development.

At a press briefing in Abuja on Thursday, CBN Governor, Godwin Emefiele, dissolved the board of the bank and announced the appointments of new leaders, with immediate effect.

The statement which was released after the briefing titled, ‘Developments at First Bank Nigeria Limited,’ Emefiele said the decision was taken “to protect 31 million customers, minority shareholders of First Bank of Nigeria Ltd”.

The statement partly read, “CBN directs immediate removal of all Directors of First Bank Nigeria Limited and First Bank Holdings Plc.

“CBN reassures First Bank of Nigeria depositors, creditors and other stakeholders of the bank of its commitment to ensure the stability of the financial system.

“CBN approves appointment of Remi Babalola as Chairman FBN Holdings Plc.

“CBN appoints Dr. Fatade Abiodun Oluwole, Kofo Dosekun, Remi Lasaki, Dr Alimi Abdulrasaq, Ahmed Modibbo, Khalifa Imam, Sir Peter Aliogo, and UK Eke (Managing Director) as Directors of FBN Holdings Plc

“CBN approves appointment of Tunde Hassan-Odukale as Chairman of First Bank of Nigeria Limited.

“CBN appoints Tokunbo Martins, Uche Nwokedi, Adekunle Sonola, Isioma Ogodazi, Ebenezer Olufowose, Ishaya Elijah B. Dodo as Directors of First Bank of Nigeria Limited.

“CBN reinstates Sola Adeduntan as Managing Director; Gbenga Shobo as Deputy Managing Director; and Remi Oni and Abdullahi Ibrahim as Executive Directors of First Bank of Nigeria Limited.”

Governors, IGP Hold ‘Secret’ Meeting Over Rising Insecurity

By
Ola Akinola
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0

The Governor of Ekiti State, Dr Kayode Fayemi and his Kebbi State counterpart, Abubakar Bagudu, on Thursday, met the Acting Inspector-General of Police, Usman Baba, to seek ways of partnering to tackle the alarming security challenges confronting the country.

 
Fayemi who is the chairman of the Nigerian Governors’ Forum (NGF) while Bagudu chairs the Progressive Governors’ Forum

At the meeting, the IGP said the police, with the support of the governors, would “surmount the insurmountable”.

The state chief executives said they were at the Force Headquarters to congratulate the IGP on his appointment and commiserate with him over attacks on police formations and loss of police personnel.

The duo said the visit was also aimed at seeking ways of partnering the police high command to tackle the raging insecurity across the country.

According to them, “It’s a routine visit, we haven’t had the opportunity to see the new acting IGP, since he took over.

“So, apart from coming to congratulate him, we are also here to extend our own condolences over the loss of personnel in this unfortunate development across the length and breadth of the country.

“These are people who have put their lives on the line so that the rest of us can be secure and safe.

“So, we are here as governors, both chair of governors’ forum and my colleague chair of progressive governors to express our condolences to the IG and exchange ideas with him on how to stem the tide of insecurity in our country”, Fayemi said.

He said the governors had provided support and would continue to support the police in terms of funding, provision of equipment in a symbiotic arrangement.

In his remarks, Governor Bagudu said the police needed the support of the citizenry to succeed.

He said that, “We need to appreciate our security agents because they are doing a wonderful job.

“They are all over the town, working hard to keep us safe, under different conditions and logistics challenges and sometimes, behavioural because a lot of us expect them to do magic.

“We need to support them, we need to appreciate their needs. So my message is to appreciate what our security agencies are doing.

“Also, all of us as citizens ask ourselves, ‘how can I help? How can I support them?’ I believe with information, sometimes, logistic issues, we can all help”, he said.

Alleged Defilement: Lagos CP Says No Plan To Release Baba Ijesha

By
Ola Akinola
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0

Lagos Police Commissioner, Hakeem Odumosu has dismissed reports that the Command plans to release popular actor James Omiyinka who us popularly known as Baba Ijesha from custody.

He assured the suspect was still being held at the State Criminal Investigation Department (SCID) Panti pending legal advice from the Director of Public Prosecution (DPP).

Odumosu’s clarification came on the heels of protest at the SCID following a report that the police planned to release the actor on Friday.

According to him, the allegation against Omiyinka was sexual/ indecent assault which is bailable and not Defilement.

He said he interviewed all parties to the case for about three hours where it was established that the alleged defilement took place seven-years-ago but was not reported.

He further stated that : “You don’t do trial on the pages of newspapers. There are two issues in Baba Ijesha’ case. One is the allegation that he defiled a girl seven-years-ago .The girl is now 14 years old. At that time no compliant or report was made to the police.

“Last week, a video went viral where he was arrested for having sexual assault. What is meant by indecent assault? When a man touches a woman where he is not supposed to without her authority or consent.

“Baba Ijesha admitted that he sexually assaulted the girl. The case of defilement that happened seven years ago is still under thorough investigations and will require some scientific work.

“Sexual assault is a bailable offence. It is not like rape. No allegation of rape was made against him. Throughout yesterday, they were all with me, including the girl that was assaulted and Baba Ijesha’ himself. I listened to them, one after the other.

He continued, “We have compiled the case file and we have sent it to the office of DPP and the office of the Attorney General of Lagos State for legal advice.

“Once that comes out, action will be taken based on legal advice. Till then, Baba Ijesha’ is still in our custody. The case is bailable but we have not considered him for bail.”

Oshiomole, NLC Attribute Insecurity Challenges To Incessant Job Loses

By
Ekaette Ibuot
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0

The former governor of Edo state and former Chairman, All Progressive Congress (APC), Comrade Adams Oshiomole, has accused the Kaduna state government of contributing to the present insecurity challenges in the North Central.
Oshiomole while speaking in Abuja at the 2nd Nigeria Labour Congress National Peace and Security Summit alleged that the over 35,000 workers sacked in the state has played a major role in contributing to the current insecurity challenges in the state and its environs.
The former APC Chairman insisted that those that have been retrenched and are left without any means of livelihood, have now been forced into crime.

Oshiomole went on to say that the less priviledged children that were abandoned by the society are bitter with a bad society that abandoned them.

“Who are the bandits? I suspect, that those 35,000 workers in Kaduna city whose livelihood have been taken, what are they doing? What will their children and grandchildren be doing now? It’s common sense to know that an idle mind, is a devil’s workshop”.

“I suspect that those Nigerians that we abandoned and not provide for them, as you can call them almajiri or beggers, they have all grown up. When you talk about unemployment, the biggest problem is having the biggest population of unemployable people because they never had any opportunity of being taught by a qualified teacher.”

He added that security challenges should not only be looked from the aspect of what the military and police can do to restore peace, rather it should also be tackled from the issue of security of wages and jobs.

He tongue lashed state governors who are still yet to implement the thirty thousand naira minimum wage.

“When they deny workers such payment, can there be peace? I summit with International Labour Organisation that the condition for national peace and security does not necessarily need much bullet but decent jobs but when you are at an environment where jobs are being killed, jobs that does not exist cannot even be decent.”

“It is criminal for any Governor not to pay workers as at when due. If the oppressed stop antagonising and organise themselves, and find a common unity across the country, that will be the beginning of laying foundation for sustainable peace in Nigeria”.

In his opening remarks, the President Nigeria Labour Congress, Comrade Ayuba Wabba stated that the organised labour has the responsibility to represent and defend not only the interest of workers but also national interest that bothers on national security.

“This summit is taking place against the backdrop increase in criminalitiy as ocassioned by terrorism, banditry and all sheds of criminality including, kidnaping, abduction, and killing of our citizens. In the North East, Boko Haram insurgency is yet to be completely addressed, in the North Central, there is the farmers-herders conflict, and also the issue of kidnapping, in the South South and South East, there is the recent issue of criminals attacking armed forces and the police and carting away their ammunitions and in the North West, the situation is compounded with bandits sacking communities at will and taking over villages”.

” This peace summit is to interrogate the issues causing insecurity and find a lasting solution that can take the country of the woods of insecurity sooner or later. The temperament of this summit is supported by the International Labour Organization recommendation 205, dealing empowerment and employment for decent work for peace and resilience which recognises the importance of decent work, promoting peace, preventing crisis situation arising from conflict and disaster, enabling recovery and building resilience”.

In the same vein, Ayuba recalled the incessant sack of thousands of workers in the state and the need to reinstate them.

“The present high state of insecurity in Kaduna state has a lot to do with the penchance by the state government for throwing workers out of their jobs. As we Speak, from 2016 to date, over 29,000 workers have been thrown out of their jobs in Kaduna state. Also tuition fees in Kaduna state have been increased by 100 percent. What this means is that many children of the poor workers will not be able to attend good schools while the children of the rich are sent to study outside the country. The implication is that these children who dropped out of school will now be used by bad elements to perpetrate insecurity in the country”.

He went on to say that
“The summit is also looking at how best to support the armed forces in the prosecution of the anti terrorism war.
“However, we are concerned about recent plans to relocate the US African Command from Germany to Nigeria. While we welcome intelligence sharing and ammunitions support to our armed forces, we warn that it will be counter productive to replace our army with foreign soldiers. Nigerian Armed Forces are capable of summounting the insecurity challenge if they are supported with adequate funds and technological equipment”.

He further called on political leaders to take responsibility for their actions while in office.

Subsidy : NNPC To Govs Expect Zero Remittance Into Federation Account In April, May

By
Ola Akinola
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0

The Nigerian National Petroleum Corporation (NNPC) has alerted the federal and state governments to its dwindling contribution to the federation account as a result of the bloated fuel subsidy.

while hinting that, It said it would only be able to remit N12.966bn to the Federation Accounts Allocation Committee in June after removing fuel subsidy from its income.

The corporation, which stated this in a document titled, ‘January to March actual and April to June projected remittance to federation account,” indicated that it would not make any remittance for the April and May FAAC after paying fuel subsidy from its revenue.

The document, which was attached to a letter written to the Accountant General of the Federation, was dated April 26 and signed by the NNPC’s Chief Financial Officer, Umar Isa.

In the letter, copies of which were sent to the Minister of Finance, Budget, and National Planning; the Director-General of the Nigeria Governors’ Forum; the Director, Home Finance; and the Chairman, Commissioners of Finance Forum, the corporation explained how fuel subsidy had been affected its revenue to FAAC.

FAAC committee, which meets monthly to share funds among federal, state and local governments, consists of the finance minister, state commissioners of finance, state accountants – general, accountant-general of the federation and the permanent secretary of the Federal Ministry of Finance.

The money shared at FAAC comes from revenues generated by the Nigeria Customs Service, the Federal Inland Revenue Service and the NNPC. However, Nigeria’s oil corporation is the highest contributor as crude oil is the biggest source of revenue for the country.

It would be recalled that the Edo State Governor, Godwin Obaseki, that the Central Bank of Nigeria printed N60bn to augment the March allocation following a shortfall in revenue generated controversy with the Federal Government denying the allegation.

An analysis of the NNPC’s projection in the document obtained by one of our correspondents on Wednesday, shows that while the net revenue to FAAC in April is N111.966bn, the NNPC value shortfall as a result of petrol subsidy is put at N111.966bn, leaving zero remittance as the net revenue to FAAC after value loss.

In May, net revenue to FAAC is projected to be N171.747bn, the NNPC value shortfall is put at N171.746bn, leaving zero remittance as the net revenue to FAAC after value loss as a result of fuel subsidy payment.

In June, the projected net revenue to FAAC is at N105.337bn, the NNPC value shortfall is N92.371bn, while the net revenue to FAAC after value loss is put at N12.966bn.

According to the document, the NNPC in the letter stated that in January, February and March, the oil firm’s net revenue to FAAC after value loss were N96.86bn, N64.16bn and N41.184bn respectively.

The letter read in part, “The Accountant-General of the Federation is kindly invited to note that the average landing cost of premium motor spirit for the month of March 2021 was N184 per litre as against the subsisting ex-coastal price of N128 per litre, which has remained constant notwithstanding the changes in the macroeconomic variables affecting petroleum products pricing.

“As the discussions between government and the labour have yet to be concluded, the NNPC recorded a value shortfall of N111,966,456,903.74 in February 2021 as a result of the difference highlighted above

An official who spoke on condition of anonymity, due to the nature of the subject, said, “The NNPC, the FIRS, Customs and the NPA, all revenue generating agencies, contribute specified quantum to FAAC. But the largest contributors are usually the NNPC and the FIRS.

“So once there is a shock to the NNPC’s revenue yielding capacity, it will affect the entire federation. On several occasions, the NNPC has been accused of not disclosing all the revenues it makes.

“Since last year, even before COVID-19, the corporation had a challenge in terms of revenue and this was worsened by COVID-19, as well as the oil production quota allotted to the NNPC by OPEC.”

OPEC, an organisation which has Nigeria as member, asked its members to cut down on the volume of crude they produce in order to help shore up global oil prices.

Nigeria had to cut down its production from over 1.8 million barrels per day to about 1.4 million barrels per day in keeping with the demand of OPEC, a development that had also reduced crude oil revenues for the country.

All these variables worsened the revenue capacity of the corporation. So what the corporation has done now is to alert FAAC through the AGF. The Edo State governor was actually raising this issue, although he did not put it rightly,” the source stated.

The official added, “And right now as it stands, there are fears that it may get to a point where the corporation might find it tough to even pay salaries. It is that bad.

“Even last year, there was the concern that salaries for September would not come as expected. The challenge is now coupled with the bloated subsidy, because the NNPC is shouldering subsidy 100 per cent.”

The source stated that the subsidy issue made the NNPC to request loan from the Central Bank of Nigeria some years ago

The official said, “About two years ago or so, the corporation obtained approval from the President on the need to have a sort of a revolving loan from the CBN for servicing some of these subsidies, then the corporation will be making up as it generates enough.

“The committee set up to handle this was made of the NNPC, Ministry of Finance, the CBN, the FIRS, among others. This committee was able to generate enough revolving loan for the NNPC to service the subsidy then.”

When contacted on the matter and asked how the government intends to raise funds for FAAC, the media aide to the Finance Minister, Yunusa Abdullahi, simply replied, “You are jumping the gun. We are in April.”

Greenfield Varsity Student Narrates Narrow Escape From Being Kidnapped

By
Ebenezer Adurodija
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0

… Say Bandits Would Have Kidnapped Us All

Some of the students of Greenfield University Kaduna, who escaped being kidnapped by bandits during an invasion of the institution on April 21, have said they would have all been kidnapped.

They made this known at the funeral of Dorathy Yohanna, who was abducted and later killed by the bandits.

Narrating the incident, a 200-level International Relations student, Jesse Jakiri, at the funeral, which held at the ECWA Goodnews Church, Narayi High Cost Kaduna, said: “We hid ourselves on top of the wardrobe of our hostel to avoid being kidnapped when the bandits stormed our school.”

He described the attack as traumatic for students and the university community, saying, “the bandits shot sporadically to the air and went from one room to the other in search of students to abduct.

According to him, “It was around 8:30pm, we were in the hostel when we heard gunshots. We then came out to see what was happening only for us to see our porter dragging door with the bandits.

“That was when they shot him on the leg, he left the door and they went inside and shot him on the chest.

We were there wondering what was happening, rushed into our rooms and locked the door and climbed the wardrobe to hide ourselves, about three of us.

“Meanwhile, there was this door that many students ran into, that was the one the bandits attacked, broke the door and picked some students.

“After the incident, we came out when we heard soldiers came in to our rescue. It was then we discovered that they broke into the girls’ hostel and went away with all the girls. They would have gone with all of us too.”

Also, Lemuel Adamu, 200 level student of Cyber Security, who also escaped the attack, said he and three of his friends had to hide inside the wardrobe for almost an hour before they came out.

“The bandits came knocking on our door and asked us to open the door but we maintained silence and hide inside the wardrobe, three of us. After some persistence, they went away,” he said.

The operation, according to him, lasted for about 45minutes to one hour before the military came and asked them to come out.

The bandits abducted 16 females and six males with demand of N800m ransom after the operation.

So far, five of the students have been killed by the bandits who threatened to kill more if ransom is not paid accordingly.

CBN Queries First Bank For Removing CEO Without Approval

By
Ola Akinola
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0

The Central Bank of Nigeria (CBN) has queried the Board of the First Bank of Nigeria Plc for removing Dr Adesola Adeduntan, the Managing Director/Chief Executive Officer, without regulatory approval.

The query is contained in a letter dated April 28, 2021 signed by the CBN Director, Banking Supervision, Haruna Mustafa, and made available to newsmen in Abuja.

The letter was addressed to the bank’s chairperson, Ibukun Awosika.

According to Mustafa, the action was taken without due consultations with the regulatory authorities, especially given the systemic importance of the commercial bank.

He noted that the tenure of Adeduntan has yet to expire.

The statement read in bits :“The CBN was not made aware of any report from the board indicting the managing director of any wrongdoing or misconduct; there appears to be no apparent justification for the precipitate removal.

“We are particularly concerned because the action is coming at a time the CBN has provided various regulatory forbearances and liquidity support to reposition the bank, which has enhanced its asset quality, capital adequacy and liquidity ratios amongst other prudential indicators.

“It is also curious to observe that the sudden removal of the MD/CEO was done about eight months to the expiration of his second tenure which is due on Dec. 31, 2021,” he added.

Mustafa noted that the removal of a sitting MD/CEO of a systemically important bank was not good.

He continued; “The removal of a sitting MD/CEO of a systemically important bank that has been under regulatory forbearance for five to six years without prior consultation and justifiable basis has dire implications for the bank and also portends significant risks to the stability of the financial system.

“In light of the foregoing, you are required to explain why disciplinary action should not be taken against the board for hastily removing the MD/CEO and failing to give prior notice to the CBN before announcing the management change in the media.

“In the meantime, you are directed to desist forthwith from making any further public/media comments on the matter. Your comprehensive response on the foregoing should reach the Director, Banking Supervision Department, on or before 5p.m. on April 29, 2021,” he said.

Recall that First Bank on Wednesday announced the appointment of Gbenga Shobo as the new Managing Director and Chief Executive Director.

Awosika said that the appointment was subject to all regulatory approvals.

She said that Shobo succeeds Adeduntan who would be leaving the bank in accordance with the bank’s term limit for its chief executive after successfully leading the bank since January 2016.

These decisions will take effect from today, April 28, 2021,” Awosika said.

“We are proud to announce Gbenga Shobo as our new Managing Director/Chief Executive Officer.

“His appointment has proven our resilience of our succession planning mechanisms and the value we place on our long-standing corporate governance practices, which underpin the institution’s enduring sustainability and 127-year legacy.

“Shobo has had a successful career in the bank and elsewhere culminating in his appointment as the deputy managing director in 2016 prior to his appointment as the managing director.

“The board is confident that Shobo has the experience and the understanding of the bank and the know-how to lead the bank through this next phase of growth, which is focused on positioning First Bank as the preeminent bank in our chosen market, delivering value to our stakeholders,” she added.

Awosika said that the bank also appointed Abdullahi Ibrahim as the Deputy Managing Director.

According to her, Ini Ebong, Segun Alebiosu, Seyi Oyefeso and Bashirat Odunewu were also appointed as executive directors.

She noted that these decisions were subject to all regulatory approvals.

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