By Habeeb Ibrahim
Shareholders representing 10% of the total shares in First Bank of Nigeria Holdings Plc. have formally requested the convening of an Extraordinary General Meeting (EGM) to remove the company’s Chairman, Femi Otedola.
Under Section 215(1) of the Companies and Allied Matters Act (CAMA), the shareholders are required to call the meeting within 21 days.
This dramatic move comes after tensions within the bank’s leadership, with the shareholders claiming that Otedola’s controversial rise to power, with assistance from former Central Bank of Nigeria (CBN) Governor Godwin Emefiele, has destabilized the institution.
Since acquiring a significant stake in FBN, Otedola’s leadership has faced intense scrutiny. Allegations have surfaced that he orchestrated the removal of key figures like former CEO Dr. Adesola Adeduntan, Chairman Tunde Hassan-Odukale, and others, to solidify his control over the bank.
The shareholders claim that his approach to leadership is threatening corporate governance, and they fear that his recent efforts to raise funds through a N360 billion private placement would further consolidate his power and undermine the bank’s integrity.
Shareholders Contest Otedola’s Leadership and Financing Plans
The shareholders argue that Otedola’s financing plans, including the private placement, could allow him to control the bank unchecked. They are calling for a rights issue or public offer instead, which they believe would ensure more equitable control over the bank. Furthermore, some shareholders express concern over Otedola’s past dealings, alleging that his previous financial missteps led to the failure of several banks, which were then bailed out by the Asset Management Corporation of Nigeria (AMCON).
Shakeups and Reshuffles
In addition to the shareholder dispute, First Bank has seen significant organizational changes under Otedola’s leadership. The bank recently conducted a major shakeup, exiting nearly 100 senior staff members as part of a broader strategy to reposition for 2025.
Sources close to the bank claim that many of the exits were part of an effort to introduce new leadership aligned with Otedola’s vision, while others were voluntary departures by executives seeking new opportunities.
The shakeup follows a series of high-profile board changes earlier in the year, including the confirmation of Olusegun Alebiosu as CEO and the appointment of five new directors in March 2024.
These changes signal Otedola’s influence in reshaping the bank’s leadership to align with his goals. Despite these efforts to transform the institution, some are concerned about the long-term stability and governance of the bank.
Ownership Battle Intensifies
Amidst the drama surrounding leadership, there is also a growing battle over the ownership of First Bank. Femi Otedola is listed as the largest shareholder in the 2023 audited accounts of FBN Holdings, with a 9.41% stake.
However, data from the Central Securities Clearing System (CSCS) and the bank’s registrars suggest that Barbican Capital, affiliated with the Honeywell Group, is the true largest shareholder with a 15.01% stake.
This dispute has led to legal action, with Barbican Capital suing FBN Holdings over discrepancies in its shareholding statement. The ownership battle has further complicated the bank’s governance issues, as the shareholders demand clarity and accountability from the leadership.
The year 2024 has seen First Bank and its parent company, FBN Holdings, in the midst of significant corporate restructuring. Under Otedola’s leadership, the bank has undergone a series of reshuffles, with key appointments aimed at strengthening the institution’s operational capabilities. The bank’s share price has risen 18.47% year-to-date, a positive sign amid the ongoing turmoil.
