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First Bank Shareholders Seek Removal of Femi Otedola Over Alleged Fraud
A group of shareholders at First Bank of Nigeria Holdings Plc. is calling for the removal of Chairman Femi Otedola, citing allegations of fraud and corporate governance concerns. The group, representing 10% of the company’s shareholders, is demanding an Extraordinary General Meeting (EGM) within 21 days, in line with Section 215 (1) of the Companies and Allied Matters Act (CAMA).
Allegations Against Otedola
The shareholders alleged that Otedola fraudulently became chairman of FBN Holdings by acquiring a significant number of shares with the help of former Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, and former bank CEO, Adesola Adeduntan.
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Key accusations include:
- Improper Clearance: Otedola allegedly assumed his position without clearance from the State Security Service (SSS) or the Economic and Financial Crimes Commission (EFCC).
- Control Over the Bank: After gaining chairmanship, Otedola reportedly removed key executives, including former Chairman Tunde Hassan-Odukale and others who opposed his leadership.
- Corporate Governance Concerns: Shareholders fear that the proposed private placement of ₦360 billion shares will give Otedola absolute control of the bank, turning it into his “private estate.”
Stakeholders’ Concerns
The shareholders expressed concerns over Otedola’s ability to pass the “fit and proper” test due to his history of non-performing loans with banks sold to the Asset Management Corporation of Nigeria (AMCON).
Some stakeholders have also raised issues with a recent $45–50 million loan granted by the African Export-Import Bank (Afreximbank) to Otedola. This loan, they allege, is part of his plan to gain full control of the bank during the proposed private placement.
Calls for Transparency
The dissenting shareholders are pushing for the ₦360 billion share placement to be conducted through a rights issue or public offering, rather than a private placement. They argue that the private placement serves Otedola’s interests rather than adhering to principles of transparency and fair corporate governance.
Organizational Shake-Up Under Otedola
Since Otedola assumed leadership, First Bank has undergone significant restructuring, including the layoff of 100 senior staff members. This corporate shake-up followed the confirmation of Olusegun Alebiosu as the bank’s Managing Director and Chief Executive Officer (CEO) in June 2024.
While the restructuring was positioned as a move to reposition the bank for future growth, critics argue it has further concentrated power within Otedola’s circle.
The Road Ahead
The call for Otedola’s removal underscores growing discontent among shareholders about the bank’s leadership direction. The upcoming Extraordinary General Meeting could determine the future of Otedola’s chairmanship and the bank’s governance framework.
This unfolding saga raises critical questions about corporate governance, transparency, and the balance of power within Nigeria’s financial sector. Shareholders and industry observers will be closely watching how this issue evolves in the coming weeks.
