CBN Sacks First Bank Board, Reinstates Ousted CEO

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The Central Bank of Nigeria (CBN) has ordered the immediate removal of all the Directors of First Bank Nigeria (FBN) Limited and FBN Holdings.

The action was announced during an emergency press briefing by the CBN Governor, Godwin Emefiele on Thursday.

The apex bank also mandated the appointment of new directors for First Bank Nigeria (FBN) Limited and FBN Holdings.

This followed a Wednesday letter served on the sacked Board by the financial regulator over the alleged illegal removal of the Managing Director/Chief Executive of the bank, Dr. Adesola Adeduntan by the board.

The First Bank Board had announced the appointment of Mr. Gbenga Shobo as the new MD/CEO. Emefiele has reinstated Adeduntan to pilot the affairs of the bank.

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But in the letter dated April 28, 2021, signed by its Director, Banking Supervision, Mr. Haruna Mustafa, and addressed to the bank’s Chairman, Mrs. Ibukun Awosika, the apex bank warned that the removal of Adeduntan was without regulatory approval.

The CBN also warned that the arbitrary removal of the bank MD/CEO could have “dire implications for the bank and also portends significant risks to the stability of the financial system.”

The CBN also mandated Awosike to provide a comprehensive response on the matter to be delivered to the banking sector regulator latest 5pm today.

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