48 Hours After Appointment, CBN Nullifies Gbenga Shobo As First Bank New MD, Reinstates Sola Adeduntan

Barely 48 hours after Gbenga Shobo was appointed as the new Managing Director of First Bank Nigeria Limited, the Central Bank of Nigeria (CBN) has made changes at the financial institution, reinstating Sola Adeduntan as the bank’s managing director.

The bank had during the week announced that Gbenga Shobo would be taking over from Adeduntan as the latter’s five-year tenure draws to a close.

The CBN, however, queried the bank for the move on Thursday, saying that it did not notify it of the decision to remove Adeduntan.

At a news conference in Abuja, CBN governor Godwin Emefiele said the apex bank learnt through media reports that the board of directors of FirstBank, “had effected sweeping changes in executive management without engagement and/or prior notice to the regulatory authorities.”

The apex bank ordered the immediate removal of all the directors of FBN Limited and FBN Holdings PLC.

“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 Holding Plc also lacked the capacity to recapitalise the bank to minimum requirements,” Mr Emefiele said.

The apex bank also ordered the immediate removal of all the directors of FBN Limited and FBN Holdings PLC.

The following were named directors in FBN Holdings Plc — Remi Babalola (chairman), Fatade Oluwole, Kofo Dosekun, Remi Lasaki, Alimi Abdulrasaq, Ahmed Modibbo, Khalifa Imam, Peter Aliogo and UK Eke (managing director).

The new directors of First Bank of Nigeria are Tunde Hassan-Odukale (chairman), Tokunbo Martins, Uche Nwokedi, Adekunle Sonola, Isioma Ogodazi, Ebenezer Olufowose, Ishaya Dodo, Sola Adeduntan (managing director), Gbenga Shobo (deputy managing director), Remi Oni (executive director), and Abdullahi Ibrahim (executive director).

“The CBN hereby reassures the depositors, creditors and other stakeholders of the bank of its commitment to ensuring the stability of the financial system. There is therefore no cause for panic amongst the banking public, given that the actions being taken are meant to strengthen the bank and position it as a banking industry giant,” said Emefiele.

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