First Bank Reacts to Reports on Plans To Remove Otedola as Chairman, Assures Customers
- First Bank management has assured customers that services will remain unaffected regardless of ongoing developments
- Reports indicate that some shareholders are planning to organize an Extraordinary General Meeting
- According to the reports, the shareholders aim to remove Chaistmatic billionaire Femi Otedola as chairman
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
FBN Holdings Plc (FBNH), the parent company of First Bank of Nigeria, has responded to reports of a call for an Extraordinary General Meeting (EGM) by two of its shareholders.
In a statement signed by Company Secretary Adewale L.O. Arogundade, FBN Holdings reassured customers, investors, and stakeholders that the development does not affect its operations or the services provided by its subsidiaries.
Source: UGC
The bank also assured us that measures were being taken to protect the interests of the company and its group entities.
The statement reads:
"The attention of FBN Holdings Plc (FBNH or the Company) has been drawn to a media publication regarding the call for an Extraordinary General Meeting (EGM) by two of the Company’s shareholders.
"This matter does not, in any way, impact the operations of the Company, and all businesses within the Group continue to provide uninterrupted services to their customers.
"We assure our valued customers, shareholders, investors, other stakeholders, and the general public that we are taking all necessary steps to protect the interests of the Company and its subsidiaries.
"The Group’s performance continues to improve, resulting in higher market capitalization, even as we work towards surpassing the regulatory minimum capital well ahead of the deadline.
"Meanwhile, the Registrar and Lead Issuing House are collating returns from all receiving agents concerning the Company’s Rights Issue, which closed on December 30, 2024.
"FBN Holdings and its subsidiaries remain committed to the highest standards of corporate governance."
What happened?
Reports from various sections of the media, including ThisDay and BusinessDay, claim that a group of shareholders holding a 10% equity stake in the financial institution have called for an EGM under Section 215(1) of the Companies and Allied Matters Act (CAMA).
The purpose of the meeting is to seek the removal of the chairman of the board, Femi Otedola, and a non-executive/deputy chief executive of Geregu Power Plc, Julius Omodayo-Owotuga.
The shareholders alleged that Otedola, the owner of Geregu Power, is attempting to gain full control of FBN Holdings by placing his loyalists on the board.
They further accused the businessman of planning to dominate the proposed private placement of N360 billion worth of shares in the firm, alleging that he was removing individuals he believed were obstructing his agenda.
Nigerian bank reportedly lays off 100 senior staff
Legit.ng earlier reported that First Bank has allegedly embarked on a significant restructuring which affected some senior staff
A report stated that the bank laid off about 100 senior staff members in a substantial shake-up in the company
The report, which Legit.ng has yet to confirm, said the sack affected a top executive director whose term was not renewed under agreed-upon circumstances.
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Source: Legit.ng
