The ongoing debate among some First Holdco shareholders over the planned N350 billion private placement has raised questions about corporate governance and transparency.
Some shareholders have backed the ongoing reforms and reorganisation under Femi Otedolaâs leadership as chairman of First Holdco, rejecting calls for an extraordinary general meeting (EGM).
The shareholders described the call for Otedolaâs removal as driven by external interests. They said Otedola’s moves were in the bankâs best interest, and that the protesting shareholders were pawns in the hands of some individuals.
A Punch report quoted Matthew Akinlade, the past president of the Noble Shareholders Solidarity Association, saying that capital raising should be an inclusive process.
Others defended the private placement as long as it abides by legal and regulatory guidelines.
On Thursday, January 9, 2025, First Holdco reassured investors, shareholders, and the public that it is taking steps to protect the bankâs interest and its subsidiary.
The company disclosed that the group’s performance has improved, resulting in a more robust market cap as it is on track to exceed the required minimum capital by the Central Bank of Nigeria (CBN) before the deadline.
The statement said the company was committed to corporate governance and that management and its subsidiaries operate with the highest levels of transparency and accountability.
First Bank management reacted to an online publication which called for Otedolaâs removal from the private placements.
According to the publication, Otedola allegedly secured about $50 million from Afreximbank and intends to turn the bank into a private business empire, a statement the bankâs management denied.
The bank opened a rights issue, offering 5.983 billion ordinary shares at 50k each to existing shareholders at N25 per share to raise additional funding of N150 billion.
This development followed the retirement of 100 senior bank executives in what the bank called a strategic realignment.
However, sources said the retirement might be connected to a lavish party in honour of the bankâs former MD/CEO, Adesola Adeduntan.
TheCable’s report quoted sources as saying that the sack might be part of the board’s concerted effort to inject fresh blood into several leadership cadres in the bank.
Another source reportedly revealed that some exits were voluntary for senior executives who wanted to explore other career options.
The report, which TimesNow.com.ng has yet to confirm, said the sack affected a top executive director whose term was not renewed under agreed-upon circumstances.
Previous reports disclosed that on December 9, 2024, the bankâs chairman, Femi Otedola, asked Folake Ani-Mumuney to step aside as the bankâs global head of marketing and corporate communications.
Otedola reportedly demanded Ani-Mumuneyâs resignation after it emerged that a massive sum was spent on a send-off party for Adeduntan, the bankâs ex-managing director.
TimesNow.com.ng earlier reported that in line with a recent monetary adjustment by the Central Bank of Nigeria (CBN), 19 banks are now giving customers an interest of 8.18% on deposits.
