A group of shareholders owning 10% of First Bank of Nigeria Holdings Plc. has called for the removal of the company’s chairman, Femi Otedola, over alleged misconduct. The shareholders issued a demand for an Extraordinary General Meeting (EGM) within 21 days, as stipulated by Section 215(1) of the Companies and Allied Matters Act (CAMA), to address their concerns and seek Otedola’s removal.
Allegations Against Femi Otedola
The shareholders allege that Mr. Otedola secured his position as chairman through questionable means, including acquiring significant shares with the support of former Central Bank of Nigeria (CBN) Governor, Godwin Emefiele. They also claim former CEO Adesola Adeduntan aided Otedola’s takeover as directed by Emefiele.
Key accusations include:
- Lack of Security Clearance: The shareholders allege Otedola became a non-executive member without clearance from the State Security Service (SSS) and the Economic and Financial Crimes Commission (EFCC).
- Dismissal of Key Executives: After assuming control, Otedola allegedly dismissed several executives, including former chairman Tunde Hassan-Odukale, Executive Director Tosin Adewuyi, Group Head Folake Ani-Mumuney, and non-executive director Ijeoma Nwogwugwu.
- Corporate Governance Concerns: The shareholders expressed fears that Otedola is consolidating control through a proposed N360 billion private placement of shares, sidelining checks and balances in the bank’s operations.
Allegations of Preferential Treatment
The shareholders also claim that Otedola has secured a $45–50 million loan from the African Export-Import Bank (Afreximbank), which they allege will enable him to dominate the proposed private placement and tighten his grip on the bank. They advocate for a rights issue or public offer as a more transparent alternative.
Past Financial Mismanagement Claims
Citing his alleged history with non-performing loans sold to the Asset Management Corporation of Nigeria (AMCON), the shareholders argue that Otedola would not have passed the “fit and proper” test required for such a role without Emefiele’s influence.
Recent Organizational Shake-Up
The controversy follows a recent restructuring at First Bank, which included laying off approximately 100 senior staff members as part of the bank’s 2025 repositioning plan. The restructuring coincided with the confirmation of Olusegun Alebiosu as Managing Director and CEO in June 2024.
Concerns Over Private Placement
The stakeholders argue that the private placement of N360 billion shares would allow Otedola to gain absolute control, transforming First Bank into a personal asset.
The unfolding events have raised significant concerns about governance and accountability within the institution, with many awaiting the outcome of the shareholders’ call for an EGM.
