The leadership crisis at First Bank Holdings of Nigeria escalated on Wednesday when a group of stakeholders demanded the removal of board chairman Femi Otedola and non-executive director Mr. Julius B. Omodayo-Owotuga. The group has requested an extraordinary general meeting (EGM) within the next 21 days, as permitted by section 215 (1) of CAMA. Shareholders claim that FBN has been in turmoil since the former Central Bank of Nigeria Governor, Godwin Emefiele, facilitated Otedola’s acquisition of a substantial number of shares that led to his position as Chairman of FBN Holdings in January 2024. They argue that with Otedola leading, along with his employees Omodayo-Owotuga at the Holdco and another staff member at the bank, Otedola has taken full control and operates without restraint. Concerns have been raised that with the planned private placement of N1003 billion in shares, he could gain outright control and use First Bank as his personal asset, lacking necessary oversight and corporate governance. “This would allow him (Otedola) to assert full control during the anticipated N360 billion private placement.” Some shareholders argue that instead of conducting a private placement for the bank’s shares, a rights issue or public offering should take place, according to an anonymous source who is also a stakeholder. It has also been suggested that Otedola’s preference for private placement may be a tactic to gain control and manage the bank like his own property. DAILY POST reports that in recent months, FBN Holdings has been engulfed in a dispute over who possesses the largest single share in the company. The contention for control of FBN Holdings is between Otedola and Barbican Capital, which is linked to the Oba Otudeko-owned Honeywell Group. In its 2023 audited accounts, First Bank Holdings listed Otedola as the largest single shareholder, holding a 9.41 percent stake in the institution. Otedola has recently boosted his ownership by acquiring a significant number of additional shares. Currently, his precise stake is unknown. However, data from the Central Securities Clearing System (CSCS), which is the recognized source for verifying share ownership, indicates that Barbican Capital, linked to the Honeywell Group owned by Oba Otudeko, is the largest single shareholder with a 15.01 percent stake. Records from the bank’s registrars, Meristem Registrars & Probate Services Ltd, also confirm that Barbican Capital holds 5,386,397,202 shares (5.38 billion) as of May 23, 2024. As a result, Barbican Capital has filed a lawsuit against FBN Holdings for inaccurately representing its shareholding in its audited financial statement. Recently, First Bank has let go of around 100 senior staff in a significant organizational overhaul. Reports suggest that top executives at the bank were asked to resign as part of a corporate restructuring plan for 2025, following the appointment of Olusegun Alebiosu as the managing director and CEO of FBN in June of last year. There are also claims that the departures were part of a deliberate initiative by Otedola to bring in new leadership at various levels within the bank. At the same time, it remains uncertain how the Security and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) will respond to the demand for an Extraordinary General Meeting (EGM) prompted by CAMA, which aims to remove Otedola and halt the private placement of the bank’s shares. As of the report’s submission, Tunde Lawanson, the spokesperson for FBH, had not yet replied to the inquiry for comment. Additionally, FBN has not made an official statement regarding the issue.
