Leadership Crisis Sparks At First Bank As Shareholders Push For EGM To Remove Otedola

A group of shareholders holding a 10% stake in First Bank of Nigeria Holdings Plc. has formally requested the convening of an Extraordinary General Meeting (EGM), in accordance with Section 215 (1) of the Companies and Allied Matters Act (CAMA). The company now has 21 days to organize the meeting.

The primary agenda for the proposed EGM includes a motion to remove the Chairman of FBN Holdings, Mr. Femi Otedola, and Mr. Julius B. Omodayo-Owotuga, a Non-Executive/Deputy Chief Executive at Geregu Power Plc.

The shareholders have raised concerns about the governance and stability of the institution since Otedola’s ascent to the chairmanship, alleging that it was influenced by the former Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele. They claim Emefiele facilitated Otedola’s acquisition of a significant stake in FBN Holdings, which subsequently led to his appointment as Chairman.

According to the shareholders, Otedola’s leadership has been marked by controversies, including the dismissal of key executives such as the former CEO, Dr. Adesola Adeduntan, and other senior figures, allegedly to consolidate control. They also questioned Otedola’s suitability for the role, citing his history with non-performing loans and involvement with AMCON bailouts during previous financial challenges.

One of the contentious issues is the proposed N360 billion private placement of shares, which the shareholders fear could further cement Otedola’s control over the institution. They argue that a public offering or rights issue would ensure greater transparency and equitable participation by all shareholders.

The group also highlighted other concerns, including the alleged sidelining of qualified candidates in leadership appointments, perceived favoritism, and interference in the bank’s internal affairs. These issues, they claim, undermine corporate governance and risk turning the institution into a personal fiefdom.

The demand for the EGM has placed regulators like the Securities and Exchange Commission (SEC) and the CBN in the spotlight. It remains to be seen how these bodies will respond to the unfolding situation.

Meanwhile, First Bank recently carried out a significant organizational restructuring, laying off around 100 senior staff as part of a strategic repositioning effort for 2025. However, some insiders allege that the restructuring aligns with Otedola’s efforts to replace key personnel with individuals loyal to him.

Shareholders await the outcome of the EGM and potential regulatory interventions as the battle for control of one of Nigeria’s leading financial institutions intensifies.