- Legendary Oba Otudeko Wins Round One
- Stakeholders Fear Crisis May Tear Bank Apart
By Abiola Olawale
Following escalating tension-soaked atmosphere at FBN Holdings Plc, the holding company of First Bank Nigeria Limited, the bank has broken its silence, addressing the lingering request for an Extraordinary General Meeting (EGM) put forth by a crucial segment of its shareholders reportedly led by billionaire business mogul and one of Nigeria’s most legendary investors, Oba Otudeko.
FBN Holdings made this known in the wake of growing concerns and apprehensions regarding the stability and potential risks facing Nigeria’s oldest financial institution triggered by a ferocious battle for the soul of the bank between boardroom mogul, Oba Otudeko and the Bank chairman, Femi Otedola, son of late Michael Otedola, who was governor of Lagos State under the defunct NRC.
Otedola is also chairman of Geragu Power Plc, a public quoted company, currently facing controversies over issues of alleged potential shares manipulations.
Crucial shareholders such as Oba Otudeko, Gabriel Ogbechie, an oil and gas mogul ( Rain Oil) and Oye Hassan Odukale are said to be concerned about ethical issues. The New Diplomat checks reveal that they consequently rejected a strange move being promoted by Mr Otedola to launch a N350 billion private placement. The shareholders are also said to be angry with some changes in the bank’s management, accusing Otedola of trying to promote inappropriate acts in First Bank including recent changes in some management positions.
Indeed, Shareholders have been voicing their concerns over the leadership crisis in First Bank which stemmed from the ongoing battle for control over First Bank Holdings Plc between Chairman Femi Otedola and Oba Otudeko. There is also another war at a second front that is rocking First Bank. That is between billionaire Otedola and an oil firm, General Hydrocarbons Limited(GHL).
Indeed, with Otedola being accused of not taking steps to stem the escalating tensions that have hit the roof tops at First Bank, many shareholders and stakeholders said they are genuinely worried about the future of Nigeria’s premier financial institution amidst these turbulent times.
The National Chairman of the New Dimension Shareholders Association, Mr Patrick Ajudua, is deeply concerned, warning that unresolved governance and strategic disputes could result in the collapse of the bank and significant financial losses for investors.
“The regulator owes it a duty to ensure that rules and laws are strictly followed in resolving the various contending issues currently rocking FBN Holdings Plc. Failure to do so may lead to the collapse of the bank, eventually resulting in a regulatory takeover and the loss of our investment,” he stated.
However, FBN Holdings, in its reaction, said there should be no cause for alarm. Apparently surrendering to calls for an emergency EGM in a statement it issued weekend, the Bank clarified that the current situation does not impact the company’s operations. According to the bank all businesses within the FBN Holdings Group continue to offer uninterrupted services to customers as it is not averse to steps to remedy the ongoing crisis which has caused unease in the bank.
The statement signed by the Company Secretary, Adewale Arogundade reads: “We assure our valued customers, shareholders, investors, other stakeholders, and the general public that we are taking all necessary steps to protect the interests of the Company and its subsidiaries.”
This reassurance comes amid raging reports of a group of shareholders being led by Oba Otudeko, demanding an EGM to possibly address leadership crisis rocking the FBN Holdings, including the removal of the Chairman, Otedola and another board member.
This comes days after it was reported that Oba Otudeko was indeed leading concerned shareholders of First Bank of Nigeria Holdings Plc (FBN Holdings) to initiate a move to trigger a massive shake-up in the leadership of the company’s Board in a bid to oust Otedola as chairman.
It is within this context that FBN Holdings issued its statement weekend, apparently caving in to the calls by pro-Oba Otudeko group of shareholders to hold an EGM to possibly explore ways of addressing growing concerns. It was gathered that the shareholders of First Bank Holdings Plc got the nod of the bank as the later fear that the raging crisis couple tear the bank into shreds with reputational crisis escalating beyond control.
The New Diplomat’s checks reveal that most stakeholders declared that the demand for the EGM is in line with section 2615 (1) of CAMA, in which case they typically have only 21 days to call the EGM.
It was gathered that the key focus of the upcoming meeting is to discuss and explore likely ways for not only the possible removal of Otedola from his position as chairman, along with the sacking of one Julius B. Omodayo-Owotuga from his role as a non-executive director but also to issue warning against attempt to contemplate issues of “strange private placement of N369bn” which could affect the integrity of the bank as it potentially amounts to ethical breach and violation of corporate governance protocols.
The stakeholders further explained that the demand for the EGM comes amidst concerns over governance and control issues within the bank.
They also added that the call for this EGM is to address allegations that Otedola has exerted too much control over the bank since he emerged as Chairman, facilitated by the immediate past governor of Central Bank Governor (CBN), Godwin Emefiele, who is currently facing massive corruption charges.
It would be recalled that this situation is reflective of a broader power struggle within First Bank, where the battle for control and, indeed, war among major and critical shareholders has been fierce.
Recall that Oba Otudeko, a matured and distinguished investment guru had initiated a legal action against FBN Holdings, seeking a court order to compel the financial institution to recognise his investment vehicle, Barbican Capital, as the largest shareholder in the bank. If he succeeds, this would effectively block Otedola from gaining recognition as the largest single shareholder in First Bank Holdings.
Otudeko, in the lawsuit (no. FHC/L/CS/1172/24), maintains that Barbican Capital owns a 15.01 per cent stake amounting to 5.38 billion units.
However, the bank insists that Otedola, who holds a 9.41 per cent share, is the largest shareholder.
In the meantime, the battle for the soul of First Bank, Nigeria’s oldest financial institution, rages in and out of the courtrooms.
