Crisis at First Bank: Otedola Enforces Discipline Following Extravagant Send-Off for Ex-MD

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Olori Uwem

Active Member
Mar 18, 2024
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Crisis at First Bank: Otedola Enforces Discipline Following Extravagant Send-Off for Ex-MD

The Breakdown:

1. Key Players and Incident:
• Femi Otedola, the chairman of First Bank’s holding company, directed Folake Ani-Mumuney, the bank’s global head of marketing and corporate communications, to resign.
• This decision stems from the controversial send-off party held for Adesola Adeduntan, the former managing director of the bank.

2. Reason for Otedola’s Action:
• The lavish party, held on November 2, 2024, at Harbour Point, Victoria Island, Lagos, reportedly cost a significant amount of money.
• Otedola viewed the expense as “insensitive and wasteful,” particularly in light of the bank’s current focus on recapitalisation and addressing past managerial missteps.

3. Background of the Ex-MD’s Exit:
• Adeduntan, who served as GMD/CEO for nine years, stepped down in April 2024 following allegations of negligence in a ₦60 billion electronic fraud.
• His tenure and the subsequent allegations have reportedly caused setbacks for the institution, prompting Otedola’s stricter oversight.

4. Otedola’s Stance and Future Plans:
• Known as a “no-nonsense activist investor,” Otedola is determined to reposition First Bank for stronger governance and financial prudence.
• He aims to eliminate extravagance and ensure efficient use of shareholders’ resources.

5. Impact on First Bank:
• Panic has reportedly spread among the bank’s top management as Otedola’s firm measures highlight efforts to address financial leakages and reposition the institution.
• This development underscores Otedola’s vision for more stringent management practices, reflecting his focus on accountability and sustainability.