Rita Odafe
Shareholder Tensions Surround First Bank Holdings
There are ongoing efforts to oust Femi Otedola, the chairman of First Bank Holdings of Nigeria, along with non-executive director, Julius B. Omodayo-Owotuga.
This situation has escalated amid new tensions in the leadership of the bank.
On Wednesday, a group of stakeholders urged for an extraordinary general meeting (EGM) to be held within the next 21 days as permitted by section 215 (1) of CAMA.
Shareholders claim that the bank has been tumultuous since Otedola’s significant share purchase, which was reportedly facilitated by former Central Bank Governor Godwin Emefiele, leading to Otedola’s chairmanship in January 2024.
Concerns have arisen among shareholders that Otedola’s position enables him to exert undue influence, given that both Omodayo-Owotuga and another of Otedola’s associates are involved in key roles within the bank.
With the proposed private placement of N360 billion in shares, shareholders fear Otedola could consolidate power and manage First Bank without oversight, potentially using it for personal gain.
“This is to enable him (Otedola) to take full control during the proposed N360 billion private placement. But some of the shareholders are saying instead of a private placement for shares of the bank, it should be by rights issue or public offer,” revealed an anonymous stakeholder.
Allegations suggest that Otedola’s choice for a private placement is a strategy to assume control over the bank as if it were his private business.
Recent reports highlight a power struggle at FBN Holdings for the title of largest shareholder, particularly between Otedola and Barbican Capital, connected with the Honeywell Group owned by Oba Otudeko.
As of 2023, FBN Holdings identified Otedola as the top shareholder with a 9.41 percent stake. However, he has since reportedly increased his holdings, leaving his total unclear.
Data from the Central Securities Clearing System indicates that Barbican Capital is currently the largest shareholder with a 15.01 percent stake.
Records from Meristem Registrars reveal that Barbican Capital holds over 5.38 billion shares as of May 23, 2024.
This dispute has led Barbican Capital to take legal action against FBN Holdings for inaccuracies in its financial statements regarding share ownership.
Recently, First Bank laid off approximately 100 senior employees during a major organizational restructure.
These changes followed the appointment of Olusegun Alebiosu as the new managing director and CEO in June of the previous year, and there are allegations that these layoffs were part of Otedola’s strategy to place new leadership at the bank.
It remains uncertain how the Security and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) will respond to this call for an EGM aimed at removing Otedola and suspending the bank’s planned private share placement.
As this situation develops, Tunde Lawanson, the spokesperson for FBN, had not yet responded to inquiries for comments regarding these events.
FBN has not released an official statement addressing the ongoing issues.
