Drama in First Bank as Shareholders Reject Calls For Otedola’s Removal

• Some First Bank shareholders have backed the proposed private N350 billion private placement
• The shareholders, who dismissed calls for an extraordinary general meeting, said the move was in the bank’s best interest
• They also rejected calls for Otedola's removal, saying that the bank has flourished under his leadership as chairman

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The ongoing debate among some First Holdco shareholders over the planned N350 billion private placement has raised questions about corporate governance and transparency.

Some shareholders have backed the ongoing reforms and reorganisation under Femi Otedola’s leadership as chairman of First Holdco, rejecting calls for an extraordinary general meeting (EGM).

Shareholders reject calls for Otedola’s removal

The shareholders described the call for Otedola’s removal as driven by external interests. They said Otedola's moves were in the bank’s best interest, and that the protesting shareholders were pawns in the hands of some individuals.

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A Punch report quoted Matthew Akinlade, the past president of the Noble Shareholders Solidarity Association, saying that capital raising should be an inclusive process.

Others defended the private placement as long as it abides by legal and regulatory guidelines.

On Thursday, January 9, 2025, First Holdco reassured investors, shareholders, and the public that it is taking steps to protect the bank’s interest and its subsidiary.

Shareholders praise First Bank’s progress under Otedola

The company disclosed that the group's performance has improved, resulting in a more robust market cap as it is on track to exceed the required minimum capital by the Central Bank of Nigeria (CBN) before the deadline.

The statement said the company was committed to corporate governance and that management and its subsidiaries operate with the highest levels of transparency and accountability.

First Bank management reacted to an online publication which called for Otedola’s removal from the private placements.

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According to the publication, Otedola allegedly secured about $50 million from Afreximbank and intends to turn the bank into a private business empire, a statement the bank’s management denied.

Controversy surrounds the retirement of 100 senior staff

The bank opened a rights issue, offering 5.983 billion ordinary shares at 50k each to existing shareholders at N25 per share to raise additional funding of N150 billion.

This development followed the retirement of 100 senior bank executives in what the bank called a strategic realignment.

However, sources said the retirement might be connected to a lavish party in honour of the bank’s former MD/CEO, Adesola Adeduntan.

TheCable's report quoted sources as saying that the sack might be part of the board's concerted effort to inject fresh blood into several leadership cadres in the bank.

Another source reportedly revealed that some exits were voluntary for senior executives who wanted to explore other career options.

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Otedola reportedly demands sack of top executives

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.

Previous reports disclosed that on December 9, 2024, the bank’s chairman, Femi Otedola, asked Folake Ani-Mumuney to step aside as the bank’s global head of marketing and corporate communications.

Otedola reportedly demanded Ani-Mumuney’s resignation after it emerged that a massive sum was spent on a send-off party for Adeduntan, the bank’s ex-managing director.

Nigerian banks announce new conditions to save money

Legit.ng earlier reported that in line with a recent monetary adjustment by the Central Bank of Nigeria (CBN), 19 banks are now giving customers an interest of 8.18% on deposits.

The banks are required to offer a minimum interest of 30% of the MPR on customer deposits.

The move aimed to counter the rising inflation as the CBN increased the MPR to 27.75%.

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Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.

Source: Legit.ng