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First Bank Shareholders Demand EGM to Remove Chairman Femi Otedola

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First Bank Shareholders Demand EGM to Remove Chairman Femi Otedola

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By Emmanuel Kwada

A group of shareholders at First Bank of Nigeria Holdings Plc, holding 10% of the company’s shares, has formally requested an Extraordinary General Meeting (EGM) to remove Chairman Femi Otedola and Non-executive Director Julius Omodayo-Owotuga. The shareholders allege that since Otedola’s emergence as Chairman, influenced by former CBN Governor Godwin Emefiele, the bank has been plagued by controversies.

They claim that Otedola has consolidated control by removing key executives, including former CEO Adesola Adeduntan, and appointing loyalists to key positions.

The shareholders are concerned that Otedola’s leadership has undermined corporate governance and stability at the bank. They point to his history of non-performing loans and involvement with AMCON bailouts, which they believe should have prevented him from passing the fit and proper test. With Otedola’s personal staff in key positions, the shareholders fear that he has seized full control of the bank and can operate without checks and balances.

The shareholders are pushing for Otedola’s removal, citing his alleged mismanagement and abuse of power

The proposed EGM has been triggered under Section 215 (1) of the Companies and Allied Matters Act (CAMA), giving the company 21 days to convene the meeting. The shareholders are pushing for Otedola’s removal, citing his alleged mismanagement and abuse of power. They are also opposing the private placement of N360 billion shares, which they believe will further cement Otedola’s control over the bank.

Instead, the shareholders are advocating for a rights issue or public offer, which would ensure greater transparency and equitable participation by all shareholders. The battle for control of First Bank Holdings has been ongoing, with Otedola’s stake in the company recently increasing through a massive acquisition of shares. However, data from the Central Securities Clearing System (CSCS) shows that Barbican Capital, affiliated with the Oba Otudeko-owned Honeywell Group, is the largest single shareholder with a 15.01% stake.

The situation has sparked concerns about the bank’s governance and stability, with many questioning the role of the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) in addressing these issues. As the drama unfolds, one thing is certain – the future of First Bank Holdings hangs in the balance, and the outcome of the proposed EGM will have far-reaching implications for the bank and its stakeholders.

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