FirstBank Shareholders Demand EGM, Seek Removal of Otedola and Omodayo-Owotuga Amid Controversial N360bn Private Placement
A group of shareholders holding 10% of FirstBank of Nigeria Holdings Plc’s shares has formally requested the company to call an Extraordinary General Meeting (EGM), seeking the removal of FBN Chairman Femi Otedola and Non-executive/Deputy CEO of Geregu Power Plc, Julius B. Omodayo-Owotuga. The shareholders allege that Otedola’s rise to power within the bank was facilitated by former CBN Governor Godwin Emefiele and has resulted in internal turmoil, with the recent N360bn private placement raising concerns over corporate governance.
The shareholders contend that Otedola, who gained control through a series of strategic moves, including the ousting of CEO Adesola Adeduntan, has concentrated power within his personal circle, further aggravated by his preference for a private placement to increase his control. They fear this could jeopardize the bank’s independence and transparency.
Otedola’s continued influence has extended beyond executive appointments, with reports suggesting that the bank is being run as his private estate. The shareholders’ move aims to halt the private placement, which they see as a dangerous consolidation of power. As the battle over share control escalates, the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) are expected to weigh in on the matter. The issue remains unresolved, with more developments expected.
A group of shareholders holding 10% of FirstBank of Nigeria Holdings Plc’s shares has formally requested the company to call an Extraordinary General Meeting (EGM), seeking the removal of FBN Chairman Femi Otedola and Non-executive/Deputy CEO of Geregu Power Plc, Julius B. Omodayo-Owotuga. The shareholders allege that Otedola’s rise to power within the bank was facilitated by former CBN Governor Godwin Emefiele and has resulted in internal turmoil, with the recent N360bn private placement raising concerns over corporate governance.
The shareholders contend that Otedola, who gained control through a series of strategic moves, including the ousting of CEO Adesola Adeduntan, has concentrated power within his personal circle, further aggravated by his preference for a private placement to increase his control. They fear this could jeopardize the bank’s independence and transparency.
Otedola’s continued influence has extended beyond executive appointments, with reports suggesting that the bank is being run as his private estate. The shareholders’ move aims to halt the private placement, which they see as a dangerous consolidation of power. As the battle over share control escalates, the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) are expected to weigh in on the matter. The issue remains unresolved, with more developments expected.