CBN gives three reasons for sacking all First Bank, FBN Holdings board members

Following what many analysts have described as shocking, the Central Bank of Nigeria (CBN) has listed reasons why it took the decision to sack all the newly appointed directors of First Bank Nigeria and reinstating Sola Adeduntan as the CEO and Managing Director.

According to the Governor of CBN, Godwin Emefiele, the sack was necessary to ensure stability in the banking system.

Explaining the decision on Thursday after an emergency meeting, CBN said if it did not react, the decision of the bank could crumble the oldest bank in Nigeria.

“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,” said the Governor

“For Sola Adeduntan to be removed without due notice to CBN was completely wrong.

Read also: CBN sacks all directors of First Bank, FBN Holdings

“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 explained during the press meeting.

CBN also pointed out that the ten-year tenure of Adedutan was yet to expire and that there were no reports of any misconduct to necessitate his removal.

For the Holdings, the new board approved by CBN includes 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.

For the Bank, Tunde Hassan-Odukale is now to serve as the chairman, 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.

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

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