CBN Returns Sola Adeduntan As MD, Sacks Directors Of First Bank Holdings

The leadership of Nigeria’s Central Bank led by its Governor, Godwin Emefiele has reinstated Sola Adeduntan as the Managing Director and Chief Executive Officer of First Bank of Nigeria Limited.

The CBN Governor made the announcement in a press briefing on Thursday shortly after the news broke that the bank has sacked the MD without CBN’s knowledge. He also announced the immediate removal of all directors of FBN Limited and FBN Holdings.

The CBN had also faulted the appointment of Abdullahi Ibrahim as Deputy Managing Director, as well as the appointment of Ini Ebong, Segun Alebiosu, Seyi Oyefeso and Bashirat Odunewu, as Executive Directors of the institution, which is one of the biggest in the country. CBN, however, directed U.K Eke to remain the Group CEO of FBN Holdings Plc.

As a matter of fact, the CBN queried the board of First Bank of Nigeria Limited over the removal of Sola Adeduntan, without due consultation with regulatory authorities.

“The CBN was not made aware of any report from the board indicting the Managing Director of any wrong-doing or misconduct; there appears to be no apparent justification for the precipitate removal,” the letter signed by Haruna Mustafa, CBN’s director of banking supervision, read.

“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 expiry of his second tenure, which is due on December 31, 2021.” Emefiele announced the constitution of an interim board to clean up the large lender and stabilise the company.

The First Bank Holdings will now have Remi Babalola as Chairman, while Fisrt Bank Limited will have Tunde Hassan-Odukale as Chairman.

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