A group of minority shareholders at First Bank of Nigeria Holdings Plc., collectively holding 10% of the company’s shares, has called for the immediate removal of the board chairman, Femi Otedola. The shareholders have formally requested an Extra-Ordinary General Meeting (EGM) to be convened within 21 days, citing Section 215(1) of the Companies and Allied Matters Act (CAMA) to address their concerns.
In their petition, the group alleged that Mr. Otedola’s ascension to the role of chairman was facilitated through a series of questionable maneuvers, including significant share acquisitions influenced by the former Central Bank of Nigeria (CBN) governor, Godwin Emefiele. They further claimed that Adesola Adeduntan, the bank’s former Chief Executive Officer, was instrumental in these transactions, allegedly acting under the directive of Mr. Emefiele.
The shareholders expressed concerns over procedural lapses in Mr. Otedola’s appointment, alleging he assumed the position of non-executive chairman without completing the requisite security vetting by the State Security Service (SSS) and the Economic and Financial Crimes Commission (EFCC).
Subsequent to his appointment, Mr. Otedola is accused of orchestrating widespread changes within the bank’s leadership. This reportedly included the dismissal of former chairman Tunde Hassan-Odukale, Executive Director Tosin Adewuyi, and Group Head Folake Ani-Mumuney. Additionally, Ijeoma Nwogwugwu, a non-executive director of a bank subsidiary, was reportedly removed following the publication of a critical article.
The shareholders voiced fears that Mr. Otedola’s influence over key positions within the institution may compromise its governance structure. They also raised alarms over the proposed private placement of ₦360 billion in shares, arguing that such a move would solidify his control and undermine checks and balances within the organization.
Concerns over Mr. Otedola’s financial history were also highlighted by the shareholders, who pointed to his involvement in banks burdened with non-performing loans that were later transferred to the Asset Management Corporation of Nigeria (AMCON). They suggested that his financial track record would have disqualified him from meeting the regulatory “fit and proper” criteria if not for Mr. Emefiele’s influence.
Citing a report by ThisDay, the shareholders revealed that Mr. Otedola recently secured a $45-$50 million loan (approximately ₦90 billion) from the African Export-Import Bank (Afreximbank). According to sources, this loan is intended to facilitate his participation in the proposed private placement of shares. The shareholders, however, have advocated for a more transparent approach, such as a public offering or a rights issue, to prevent any individual from gaining disproportionate control.
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