CBN Reveals Why it Sacked All Director of First Bank, Announce New Members

CBN Reveals Why it Sacked All Director of First Bank, Announce New Members

- The CBN sacked all the director of First Bank after a confrontation about the replacement of its ceo

- First Bank had replaced Sola Adeduntan with Gbenga Shobo this week, a decision that CBN frowned against

- The central bank replaced the board of directors with new members, to initiate a restructure of the bank

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The Central Bank of Nigeria has stated reasons for sacking First Bank's newly appointed directors following a confrontation between the bank and the regulator of the financial institution.

The CBN governor, Godwin Emefiele, said the sack was meant to stabilise the financial institution that has been under regulatory forbearance. CBN and First Bank had disagreements over the leadership position.

The chief executive officer, Sola Adeduntan, had been replaced with Gbenga Shobo, this week, even though he had about eight months left. CBN frowned against the replacement.

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Sola Adeduntan's removal causes rift between CBN and First Bank, threat declared

In a leaked memo, CBN had threatened to take disciplinary action against First Bank. This threat led to the sack of the newly appointed executives, with the apex Bank replacing them.

CBN Reveals Why it Sacked All Director of First Bank, Announce New Members
Central Bank of Nigeria, Godwin Emefiele

The new board for First Bank approved by CBN are Remi Babalola, as chairman, UK Eke as managing director. Fatade Abiodun Oluwole, Kofo Dosekun, Remi Lasaki, Alimi Abdulrasaq, Ahmed Modibbo, Khalifa Imam and Sir Peter Aliogo are members.

While Tunde Hassan-Odukale is now to serve as the chairman of the bank, Sola Adeduntan is back as the managing director, Gbenga Shobo is the deputy managing director, Remi Oni serves as executive director, Abdullahi Ibrahim as executive director.

Other members are Tokunbo Martins, Uche Nwokedi, Adekunle Sonola, Isioma Ogodazi, Ebenezer Olufowose and Ishaya Elijah B. Dodo.

“Insiders took loans in the bank, with controlling influence on the board of directors, and have failed to adhere to the terms for the restructuring of their credit facilities and is contributing to the poor financial state of the bank,” Emefiele said.

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“For Sola Adeduntan to be removed without due notice to CBN was completely wrong.
“To us at the CBN, not only is it imperative to protect the minority shareholders, that have no voice to air their views, also important, is the protection of the over 31m customers of the bank who see FBN as a safe haven for their hard-earned savings,” Emefiele said on Thursday.

Meanwhile, had previously reported that Ikeja Hotel recorded over N60 million operating loss in three months and revenue shortfall in the first quarter of this year.

The company had disappointing results as it reported lostbefore-tax in before tax earnings and that of after-tax earnings for the first three months. Ikeja Hotel's revenue shortfall was 40.11%.

Source: Legit

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