FBN Holdings says it is taking all necessary steps to safeguard the interests of the company and its subsidiaries.
This comes in response to reports of a group of shareholders formally requesting an Extraordinary General Meeting (EGM) aimed at removing FBN Chairman Femi Otedola and Julius B. Omodayo-Owotuga, a Non-executive/Deputy Chief Executive of Geregu Power Plc.
In a statement obtained by Nairametrics on Thursday, FBN Holdings said that the ongoing situation does not affect the operations of the company.
“This matter does not in any way impact the operations of the Company, and all the businesses within the Group continue to provide uninterrupted services to its customers,” it stated.
The bank said it is committed to its valued customers, shareholders, investors, other stakeholders, and the general public, assuring them that every necessary step is being taken to protect the interests of the company and its subsidiaries.
Shareholders Voice Concerns Over Otedola’s Leadership
- Some shareholders have expressed dissatisfaction with Otedola’s leadership style, alleging that his significant acquisition of shares, influenced by former Central Bank of Nigeria (CBN) Governor Godwin Emefiele, has led to unrest within the financial institution.
- According to these shareholders, Emefiele had invited the former Chief Executive Officer of FirstBank, Dr. Adesola Adeduntan, to work with Otedola to facilitate his takeover of the bank.
- This collaboration allegedly led to Otedola becoming a non-executive without security clearance from the Department of State Security (DSS) and the Economic and Financial Crimes Commission (EFCC).
- Despite these allegations, FBN Holdings maintains that its performance continues to improve, with a higher market capitalization and a commitment to surpassing regulatory minimum capital requirements well ahead of the deadline.
What you should know
- According to a report on ThisDay Newspaper on Thursday, the shareholders raised multiple concerns about Otedola’s leadership. They claim that after successfully taking over the bank, Otedola targeted key figures for removal, including Dr. Adesola Adeduntan, Tunde Hassan-Odukale (former Chairman of First Bank of Nigeria Limited), and Tosin Adewuyi, who was bypassed for the CEO position despite being the top candidate in an interview conducted by a global recruitment agency.
- Furthermore, shareholders are apprehensive about Otedola’s control, with personal staff like Omodayo-Owotuga holding significant positions at the Holdco and the bank. This control raises fears among shareholders that with the private placement of N360 billion shares, Otedola might wield absolute control, potentially compromising checks, balances, and corporate governance.
However, FBNHoldings reiterated its commitment to corporate governance, stating, “The Registrar and Lead Issuing House are collating the returns from all receiving agents in respect of the Company’s Rights Issue which closed on December 30, 2024.”
It reaffirmed that FBNHoldings and its subsidiaries remain dedicated to the highest level of corporate governance.
