Sack of Ibukun Awosika, Others Meant to Protect Shareholders, Depositors, says CBN

Sack of Ibukun Awosika, Others Meant to Protect Shareholders, Depositors, says CBN

- In order to protect the customers and shareholders, CBN said it had to sack the First Bank board of directors

- First Bank had replaced its managing director, Sola Adeduntan, with Gbenga Shobo, eight months before his tenure

- The apex bank said the change in leadership wasn't approved, and neither did First Bank consult the CBN

PAY ATTENTION: Join a community of CEOs, founders, and decision-makers: subscribe for a free monthly business newsletter Digital Talks and succeed BIG!

The governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, stated that customers' concerns had influenced the decision to sack all members of First Bank's board of directors.

Legit.ng had reported the sack on Thursday following a press conference held by Emefiele to announce the change of management in Nigeria's oldest bank.

The management was changed following the replacement of Sola Adeduntan by the former directors without prior notice to the CBN or receiving approval from the financial regulator.

Read also

2023: PDP takes final decision on Uche Secondus, sends warning to members

Adeduntan was replaced by Gbenga Shobo on Wednesday. This decision was moved against by the CBN, which criticised First Bank's former management and threatened to hit them with disciplinary action.

Sack of Ibukun Awosika, Others Meant to Protect Shareholders, Depositors, CBN
Central Bank of Nigeria, Godwin Emefiele and First Bank logo. Photo: Chris J. Ratcliffe/Bloomberg/Getty Images (R) and @FirstBankngr/Twitter
Source: UGC

Making true of its word, the CBN sacked all board members, and tied its regulatory decision to the protection of shareholders and customers of  First Bank who have been caught in the leadership crisis.

“Following further review of the situation and in order to preserve the stability of the bank so as to protect minority shareholders and depositors, the management of the CBN, in line with powers conferred on it by the Banks and Other Financial Institutions Act 2020, has approved and hereby directs as follows:
“The immediate removal of all the directors of First Bank of Nigeria Limited and First Bank of Nigeria Holdings Plc.” Emefiele said at the press conference on Thursday.

The sack affected Ibukun Awosika and her board members, while Gbenga Shobo was left out to act as deputy to Adeduntan in the new management of First Bank.

Read also

CBN reveals why it sacked all director of First Bank, announce new members

Meanwhile, Legit.ng had previously reported that Ikeja Hotel lost over N60 million in the first three months of this year. During the first quarter of 2021, the company reported a shortfall of 40.11% in revenue.

Before-tax earnings and after-tax earnings for the first quarter of this year also declined, affecting Ikeja Hotel's total earnings. The company had been affected by COVID-19 pandemic.

Due to the virus outbreak, Ikeja Hotel and other hospitality companies were on lockdown for over four months in 2020 and that has had a negative impact on Ikeja Hotel.

Source: Legit

Online view pixel