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Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" - Business - Nairaland

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Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by Bamibor: 7:21am On Apr 29
•Says bank under forbearance, liquidity support can’t remove helmsman without approval

The Central Bank of Nigeria (CBN) yesterday queried the board of First Bank Nigeria Limited over the removal of the Managing Director/Chief Executive of the bank, Dr. Adesola Adeduntan, saying the action was without regulatory approval.

The apex bank said the board’s move has “dire implications for the bank and also portends significant risks to the stability of the financial system.”

The central bank stated this in a letter dated April 28, 2021, signed by its Director, Banking Supervision, Mr. Haruna Mustafa, and addressed to the bank’s Chairman, Mrs. Ibukun Awosika, a copy of which was obtained by THISDAY.

CBN also demanded a comprehensive response on the matter from Awosika to be delivered to the banking sector regulator latest 5pm today.

The Board of Directors of First Bank had earlier yesterday announced the appointment of Mr. Gbenga Shobo as the new Managing Director/Chief Executive Officer (CEO).

But in a swift reaction, the CBN noted with concern that the action was taken without due consultation with the regulatory authorities, especially given the systemic importance of First Bank as well as given that the tenure of Adeduntan was yet to expire.

“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.

“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.”

According to the central bank, the removal of a sitting MD/CEO of a systemically important bank, “that has been under regulatory forbearance for five to six years without prior consultation and justifiable basis,” has dire implications for the bank and also portends significant risks to the stability of the financial system.

“In light of the foregoing, you are required to explain why disciplinary action should not be taken against the Board for hastily removing the MD/CEO and failing to give prior notice to the CBN before announcing the management change in the media.

“In the meantime, you are directed to desist forthwith from making any further public/media comments on the matter. Your comprehensive response on the foregoing should reach the Director, Banking Supervision Department on or before 5pm on April 29, 2021,” it added.

Meanwhile, the banking sector regulator in another letter also signed by Mustafa, titled: “Re: Audited FIRS Accounts for the Financial Year Ended December 31, 2020,” revealed that the bank was yet to divest its interest in HoneyWell Flour Mills, Barti Airtel and other non-permissible interest.

The Chairman of FBN Holdings, the holding company of First Bank Nigeria Limited, Oba Otudeko is also the Chairman of Honey Well. He used to be the Chairman of Barti Airtel.

However, the CBN in the letter stated: “We are concerned that the bank has not complied with regulatory directives to divest its interest in Honey Well Flour Mills despite several reminders. We further noted that after four years the bank is yet to perfect its lien on the shares of Mr. Oba Otudeko in FBN Holdco, which collateralised the restructured credit facilities for Honey Well Flour Mills contrary to the conditions precedent for the restructuring of the company’s credit facility.

“Given the bank’s failure to perfect the pledge and satisfy conditions for regulatory approval, the restructuring has thus been invalidated and the credit facilities now payable immediately.”

Consequently, the central bank has requested that HoneyWell, “ fully repays its obligations to the bank within 48 hours failing which the CBN will take appropriate regulatory measures against the insider borrower and the bank.”

It added: “Furthermore, the Bank notes the untenable delay in resolving the long outstanding divestment from Bharti Airtel Nigeria Ltd in line with extant regulations of the CBN.

“Accordingly, you are required to divest the equity investments in all non-permissible entities such as Honey Well Flour Mills and Bharti Airtel Nigeria Limited within 90 days. Please you are to forward evidence of compliance in accordance with the timelines above to the Director of Banking Supervision.”

Source: https://www.thisdaylive.com/index.php/2021/04/29/cbn-queries-first-bank-as-ceo-is-purportedly-ousted/

2 Likes 1 Share

Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by nams77: 7:57am On Apr 29
Noted


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Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by iiamharkinwaley: 11:24am On Apr 29
undecided
Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by Prodigee: 11:24am On Apr 29
Nigerians and misbehaving!
Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by shegzhkn: 11:25am On Apr 29
Misplaced Priorities, what the hell is their business ??

8 Likes 3 Shares

Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by Seniorwriter(m): 11:25am On Apr 29
Interesting .... I'm sure there is more to this that meets the eye.
I suspect power play and manipulations due to financial and corrupt practices about been swept under the carpet/blanket.
Anyways anything from this CBN & her clueless Governor is expected.
A Governor that left his statutory duties but went after EndSars protesters by freezing their accounts but can't freeze the accounts of Terrorist Sympathizers!? SMH @the present skewered leaders!

We need young visionary leaders even @ CBN Leadership!

#NoToBadGovernament
#NoToBadLeadership


@Seniorwriter

13 Likes 3 Shares

Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by Hiploko(m): 11:25am On Apr 29
Na wa o.

This kind of board harsh ooooo...

Why the rush?

1 Like

Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by Rickydee(m): 11:25am On Apr 29
hmmm

Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by KingAzari: 11:25am On Apr 29
Abeg ooo. FD account is there ooo.
Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by Marvieduke(f): 11:25am On Apr 29
Wetin concern CBN with the affairs of first bank appointing a C.E.O.

7 Likes

Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by CheedyJ(m): 11:26am On Apr 29
Make dem sha no touch my small change for their bank....

2 Likes

Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by Funkybabee(f): 11:27am On Apr 29
Hmmm
Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by Cutehector(m): 11:28am On Apr 29
Politics
Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by valentineuwakwe(m): 11:28am On Apr 29
No doubt it will centre on corruption but the board don't want to make it public so as not to create panic among its customers and the public confidence the bank have enjoy in Nigeria over the years!

5 Likes

Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by Bmaster(m): 11:28am On Apr 29
I hope this new development won't have any effects to the figures I have inmy bank account.







Make them no start wetin wey go cause chaos o

1 Like

Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by helinues: 11:28am On Apr 29
sad

Is it CBN that's going to dictate who becomes the next first bank MD/CEO?

Ayam not understanding

4 Likes 2 Shares

Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by peacettw: 11:28am On Apr 29
CheedyJ:
Make dem sha no touch my small change for their bank....

Very important

2 Likes

Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by Abdulquadrimuha(m): 11:30am On Apr 29
You sure there is no more to this saga?
Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by ignis: 11:30am On Apr 29
Lawlessness in all areas including banking industries under Buhari... God's sent plague to Nigeria.
Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by maskid(m): 11:31am On Apr 29
Wawu
Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by maskid(m): 11:31am On Apr 29
I thought a tenure is 5 years?
Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by haconjy(m): 11:31am On Apr 29
O ga o
Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by Lucas10: 11:32am On Apr 29
Wetin concern CBN with FBN?

6 Likes

Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by blackpanda: 11:32am On Apr 29
Emefiele oloshi

1 Like

Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by ArewaNightmare: 11:32am On Apr 29
grin criminals questioning thieves haha this country na cruise

4 Likes

Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by Drsnives(m): 11:33am On Apr 29
To hell with all of una
Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by blackpanda: 11:33am On Apr 29
ignis:
Lawlessness in all areas including banking industries under Buhari... God's sent plague to Nigeria.

hmmmm its well
Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by smartty68(m): 11:34am On Apr 29
By their forehead you shall know them.

2 Likes

Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by kingemaker(m): 11:34am On Apr 29
valentineuwakwe:
No doubt it will centre on corruption but the board don't want to make it public so as not to create panic among its customers and the public confidence the bank have enjoy in Nigeria over the years!
That's a more grievous regulatory non-compliance. Since the country is on an airplane mode, everyone is just doing as they like. How do you evict an MD/CEO without carrying the regulators along. There's more to this issue. I cant wait to see the next set of revelations

5 Likes

Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by Ijaya123: 11:34am On Apr 29
Corporate Machiavelli also known as boardroom politics at play here.

Some powerful interest being played out.
Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by Authoreety: 11:35am On Apr 29
Things are happening
Re: Adesola Adeduntan: CBN Queries First Bank As CEO Is ‘Purportedly Forced Out" by Kolaboluv7(m): 11:36am On Apr 29
Politics everywhere
If church own no surprise me na bank own go come surprise me..?
Make i check my brain sef cos e be like say herdsmen don kidnap am

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