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Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis - Business - Nairaland

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Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by RuudVanNisteroy: 2:22pm On Apr 30
The Governor of Central Bank of Nigeria, CBN, Mr. Godwin Emefiele has revealed how boardroom guru and major shareholder with the First Bank Nigeria Limited, Dr. Obafoluke Otudeko spurned his calls and pleas not to interfere with the running of the bank by engineering the removal of its managing director/Chief Executive Officer, Dr. Adesola Adeduntan.

According to the CBN Governor, Otudeko, a major shareholder controlling about 10 percent of First Bank, rebuffed his calls and also refused to pick the calls of 2 other major shareholders of the Bank, sought to intervene.


“I spoke to Mr. Oba Otudeko, he refused to grant my request. I had to call two of his fellow major shareholders to call him to ask the board not to take such decisions without the approval of the CBN. He refused to pick the calls of these shareholders — who are also owners of the bank,” Emefiele said at a live broadcast Thursday to announce the sacking of the boards of First Bank Nigeria Limited and FBN Holdings Limited.

“I called him the second time, I heard on another phone one of the shareholders begging him not to take that decision, he insisted on taking that decision. I sent the shareholder back to the office of Mr. Oba Otudeko to appeal to him to suspend the decision, he refused to see the shareholder. I feel we have done our best and we would not allow a shareholder who cannot subject himself to regulatory control and authority to remain as the director of a bank.”

FBN Holdings is one of the systemically important bank in Nigeria, given its historical significance having been established in 1894, large customer base and high interconnectedness with other financial service providers.

First Bank has over 31 million customers, deposit base of over N4.2 trillion, shareholder funds N618 billion and NIBBS instant payment processing capacity of 22 percent of the industry.

The need to protect these over 31 million customers of First Bank and its minority shareholders are some of the reasons why the CBN moved to oust the former boards of the First Bank and its holding company.

“The CBN considers itself a key stakeholder in management changes involving First Bank of Nigeria, due to the forbearances and close monitoring by the bank over the past 5 years aimed at stemming the slide in the growing concern status of First Bank,” Emefiele said.

Emefiele said it was surprising for the CBN to learn through media reports that the board of directors of First Bank of Nigeria limited a systemically important bank under regulatory forbearance regime had effected sweeping changes in executive management, without engagement and/or prior notice to the regulatory authorities.

The action by the board of First Bank of Nigeria sent a negative signal to the market on the stability of leadership on the board and management and it is in light of the foregoing that the CBN decided to query the board of directors on the unfortunate development at the bank, according to Emefiele.

The apex bank boss also revealed that insider related loans in the bank especially those with controlling interest on the board of Directors failed to adhere to the terms of restructuring of their credit facilities, which contributed to the poor financial state of the bank.

“The CBN’s recent target examination as at December 31st 2020 revealed that insider loans were materially non-compliant with terms of restructure of the loans,” Emefiele said.

“For example non perfection on liens on shares and collateral arrangements that CBN had insisted on for over 3 years, despite several regulatory reminders. The bank has also not divested its non-permissible holdings in non-financial entities in line with regulatory directives.”

The CBN in a letter to Mrs Ibukun Awosika, the former Chairman of the Bank dated April 26, 2021, said the bank had not complied with regulatory directives to divest its interest in Honeywell Flour Mills despite several reminders.

The bank had also not perfected its lien on the shares of Otudeko in FBN Holdco which collaterised the restructured credit facilities for Honeywell Flour Mills contrary to conditions precedent for the restructuring of the company’s credit facility.

The bank had also failed to divest its equity investments from its holdings in Bharti Airtel Nigeria in line with extant regulations.

Otudeko is the Chairman of FBN Holdings, the holding company of First Bank Nigeria Limited. He is also the Chairman of Honeywell Group while he used to be the Chairman of Barti Airtel.

However, the CBN in a letter stated: “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 CBN has requested that Honeywell Flour Mill “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 Honeywell 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.”

However, this CBN intervention may have a substantial impact on the share price of First Bank Holdings as stock market traders expect a double-digit dip as the opening bell commences.

Part of the concerns raised by the CBN was the issue of loans procured by favouritism, which failed to adhere to the terms for the restructuring of their credit facilities.

FBN Holdings closed with a loss of -6.6%, placing it at the third position in the NSE ASI for Thursday.

Meanwhile, analysts have opined that the CBN announcement may trigger an AMCON takeover of Honeywell Nigeria Plc if Otudeko fails to repay his loans.

Shares of Honeywell Flour Mills, a consumer goods company owned by Oba Otudeko fell 3.76% on Thursday and could fall further by Friday when the market reopens as investors digest the impact of the CBN’s announcement and what this could mean for the survival of Honeywell.

https://pmexpressng.com/how-oba-otudeko-rebuffed-my-pleas-on-first-bank-crisis-emefiele-cbn-governor/

6 Likes 2 Shares

Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by IgweOfNnewi: 2:24pm On Apr 30
Otudeko did what is in his best interest

6 Likes

Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by festacman(m): 2:46pm On Apr 30
As an entrepreneur, Oba Otudeko is a go-getter. As a boardroom politician, he is bullish, very bullish. As a money-chaser, he is a hard-nosed capitalist. He has the tendency to browbeat regulatory authorities both in money market and capital market. There is no doubt that Oba Otudeko is a principality in the mammonic kingdom.

However, every empire has its rise and its fall. One hopes this corporate governance misadventure will not lead to the fall of Oba Otudeko empire.

54 Likes 7 Shares

Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by Roddwave: 2:49pm On Apr 30
o boy see levels
So even cbn governor's calls gets rejected
Na waoo
God elevate me make me dey reject Minister's call

145 Likes 11 Shares

Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by brosom(m): 2:49pm On Apr 30
Seriously I no understand C.B.N of recent.

2 Likes

Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by chatinent(m): 2:49pm On Apr 30
Watching intently..
Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by timoddy(m): 2:50pm On Apr 30
Hmmmmmmm...the godfathers..
Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by Frontail: 2:50pm On Apr 30
grin.... Everybody like money grin grin grin

12 Likes 1 Share

Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by rottennaija(m): 2:50pm On Apr 30
Ok. So the rich also get fired

9 Likes

Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by Goldenheart(m): 2:50pm On Apr 30
smiley
Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by DagashSamson: 2:50pm On Apr 30
There are always three sides to a story.

Let's wait and hear the other sides.

Meanwhile

In-play

Israel » Leumit League

Hapoel Afula - MS Kafr Qasim

Prediction = 1 - 1

2 Likes

Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by Johnkay01: 2:51pm On Apr 30
You for call me

Emefiele don Bleep up

3 Likes 1 Share

Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by Blacknote: 2:51pm On Apr 30
All this one na long grammar and epistle, my own na make nothing do my 3k wey dey there, na wetin I go use hold my side this coming week.

59 Likes 4 Shares

Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by Sonnobax15(m): 2:51pm On Apr 30
lipsrsealed
This one na bigmen fight..

As an aspiring future big man wey I be,make I jejely go withdraw my least 2k wey dey for my first bank account tay chop suya throwaway before Dem go begin talk story put

14 Likes

Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by drlucky17: 2:51pm On Apr 30
Oh first bank my bank

1 Like

Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by CSTRR: 2:51pm On Apr 30
One man is worth $550 millions and still owing bank debt.

In the poorest population on Earth.

38 Likes 2 Shares

Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by Ohizfly(m): 2:51pm On Apr 30
light my kpoli
Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by MondayOsunbor(m): 2:52pm On Apr 30
festacman:
Ok



even first bank we placed all our hope on and saved our life savings in


this buhari govt will kill it as well

6 Likes

Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by Roddwave: 2:52pm On Apr 30
Frontail:
grin
Boy's make-up smiley
Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by Throwback: 2:52pm On Apr 30
Is it because Oba Otudeko is Igbo? Emefiele is just a jealous Yoruba man who is envious of the hardworking Igbo business man whose investments span a lot of industries.


I know my statement above will hit the nerve of those who love to whip up ethnic sentiments when their notable business men are being rightly pursued by regulators and the law.

As for Oba Otudeko, I am sorry you have to do everything to comply by the rules and regulations. You do not have clansmen in your Yoruba tribe to start throwing ethnic tantrums on your behalf.

Afenifere or OPC will not hold any meeting on Otudeko's behalf claiming tribal attack on a Yoruba captain of industry.

AMCON should do the needful till every debt is fulfilled. Imagine chronic debtors setting up charity foundation while owing gbese.

On a more critical note, could Emefiele have taken such right decision if it had been a Fulani Muslim businessman under a Fulani Muslim regime?

Or does Emefiele only bow to the Fulani Muslims while forgetting he is a chief regulator who should bow to no one, not even sending emissaries to Otudeko who should have been sternly warned and not cajoled?

57 Likes 7 Shares

Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by ehissi(m): 2:53pm On Apr 30
W
Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by CSTRR: 2:53pm On Apr 30
AMCON should take over Honeywell and sell it off to a company that can pay their debt.

Crooks.

11 Likes 3 Shares

Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by Kingpele(m): 2:53pm On Apr 30
My brother u did your best ,as a former employee I knew u would have done your best to resolve the issue but money comes with pride for those who refused to be trained by God,I never had any reason to suffer in this life but when I sake God cos I was afraid of losing my creator ,he subjected to the kind of suffering I never believed I could go through in my life ,then I learned humility ,today I chill with everyone both rich and poor cos I know that wealth is vanity ,this guy could have saved his board if he had applied a little humility

9 Likes

Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by Jerryojozy(m): 2:53pm On Apr 30
A well taken decision by CBN. Nothing ruins a company like insider dealings. This is how the acquired Diamond bank started.



Genius J

13 Likes 1 Share

Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by mogbeyiteren: 2:53pm On Apr 30
The CBN may be right on this

3 Likes 1 Share

Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by blinking001(m): 2:53pm On Apr 30
So you decided to show him who's the boss. Smart man

3 Likes

Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by MondayOsunbor(m): 2:54pm On Apr 30
Youngleo17:
Questions
I've heard couple of news, people traveling on paid expenses and paying back later within a year or two, but i dont knw the possibility of this. Or agencies that allows this
pls is this real?
How can one get this?cause i understand that these agencies are not open!
I really need to make an urgent move, whatever it takes but not a stowaway, pls dont ignore me!
Someone needs help


for real ? i am interested ?

it is now clear that Nigeria is heading for doom!
Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by Primusinterpares(m): 2:54pm On Apr 30
We know o. Next!!!!!
Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by Mutemenot(m): 2:54pm On Apr 30
shocked the rich get carried away thinking their money is life and all...

7 Likes 1 Share

Re: Emefiele: Oba Otudeko Rebuffed My Pleas On First Bank Crisis by Seniorwriter(m): 2:54pm On Apr 30
Interesting ....
Fake ass puppet governor of a CBN!

@Seniorwriter

1 Like

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