A faction of First Bank of Nigeria Holdings Plc shareholders, controlling 10% of the company’s shares, has formally called for an Extraordinary General Meeting (EGM) to oust Chairman Femi Otedola and Non-Executive Director Julius Omodayo-Owotuga. The group submitted their request on Wednesday, in accordance with Section 215(1) of the Companies and Allied Matters Act (CAMA), which mandates the company to convene the meeting within 21 days.
At the heart of this call is a growing discontent with the bank’s leadership, especially since Otedola’s rise to power. Shareholders allege that Otedola’s acquisition of significant shares was facilitated by former Central Bank of Nigeria (CBN) Governor Godwin Emefiele, leading to instability within the institution.
Reports indicate that Emefiele personally brokered the deal for Otedola’s entry into the bank by instructing the former CEO of FirstBank, Dr. Adesola Adeduntan, to collaborate with Otedola. Once Otedola secured his position, he allegedly began reshuffling the bank’s leadership, starting with the removal of Adeduntan and other key executives.
One controversial decision involved bypassing Tosin Adewuyi, a top candidate for CEO, in favor of Olusegun Alebiosu, who ranked lowest in the recruitment process. Alebiosu is said to have pledged loyalty to Otedola, allowing him to exert control through trusted allies like Akin Akinfemiwa, a non-executive director.
Concerns among shareholders have heightened over a planned N360 billion private placement of shares, which they fear would grant Otedola unchecked control of the bank. They argue that this move could undermine corporate governance and turn the institution into his personal asset.
Further allegations suggest that Otedola secured a $45 to $50 million loan from Afreximbank to fund the private placement. Shareholders are now demanding that the shares be offered through a rights issue or public offer instead of a private placement, to ensure transparency and fairness.
Critics also point to Otedola’s past financial dealings, citing his involvement in bad loans that were eventually offloaded to the Asset Management Corporation of Nigeria (AMCON). They argue that he wouldn’t have passed the necessary regulatory tests without political backing.
As tensions escalate, the outcome of the proposed meeting will be crucial in determining the future direction of FBN Holdings and whether Otedola’s grip on the bank will loosen or strengthen further.
