First Bank Shareholders Move to Unseat Otedola as Chairman Over Fraud Allegations

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By Reporter

Some shareholders of the oldest Nigeria Bank, First Bank of Nigeria Holding Plc are accusing Mr. Femi Otedola, the newest chairman of the bank of fraudulently becoming “a non-executive of the bank without security clearance by the SSS and the EFCC.”

On the strength of this allegation, the shareholders have called for the removal of Femi Otedola as chairman of their bank.

The core investors with 10 per cent shares in the bank, has called for an Extra-Ordinary General Meeting to be held within 21 days, as provided by Section 215 (1) of the CAMA law, to push their demand, amongst other urgent company matters.

The angry investors stressed that, Otedola emerged the FBN Holdings chairman by acquiring significant amount of shares with the influence of immediate past Central Bank of Nigeria (CBN) governor, Godwin Emefiele. They added that the bank’s former Chief Executive Officer, Adesola Adeduntan also assisted Otedola, to take over the bank, with the support of the embattled Emefiele.

A report monitored by Midwest Herald pointed out that, “After the takeover however, Mr Otedola ousted Mr Adeduntan; the then bank chairman, Tunde Hassan-Odukale; Executive Director Tosin Adewuyi; Group Head, Folake Ani-Mumuney; including a journalist and non-executive director of the bank subsidiary, Ijeoma Nwogwugwu, for authoring a critical article.”

The said report added too, that the stakeholders have “…claimed that with Mr Otedola as chairman, his personal employee at Holdco, and another at the bank, he had seized control of the bank and did what he wanted.” The shareholders also have fears that, “…with the private placement of N360 billion shares, he would have absolute control and turn First Bank to his piggy bank without checks, balances and corporate governance.”

They are blaming the former Central Bank Governor, Emefiele of fostering Otedola on First Bank. “We believe that if not for Mr Emefiele, Mr Otedola could not have passed the fit and proper test, after he ruined several banks with non-performing loans sold to AMCON.”

Other sources claimed that the “Export-Import Bank (Afreximbank), has granted Mr Otedola a $45 to 50 million loan, which is about N90 billion. According to a source, the loan will enable him (Otedola) to take full control during the proposed N360 billion private placement. But some of the shareholders are saying instead of a private placement for shares of the bank, it should be by right issue or public offer.”

Efforts to get response from first bank chairman failed as call put across the his office at the bank was not answered.