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First Bank Shareholders In Dilemma As Ownership Tussle Continues, Hindering Recapitalisation
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Shareholders of First Bank of Nigeria (FBN) Holdings, Nigeria’s oldest financial institution, are growing increasingly anxious as recent crises and scandals have caused the company’s share price to plummet by over 50% in five months, POLITICS NIGERIA reports.
FBN Holdings, which traded at ₦43.95 per share on March 19, has seen its share price fall to ₦20.35 as of Wednesday, according to data from the Nigerian Securities Exchange (NGX).
This dramatic decline is largely attributed to a series of controversies that have embroiled the company’s management and operations in recent months.
Asides the controversies surrounding the ownership of its controlling stake, a litany of court cases pending determination and a fraud case that led to the dismissal of over a hundred staff have raised concerns for investors holding the bank’s shares, sources confided in this newspaper.
Recapitalisation Stalled
These developments have cast a cloud of uncertainty on the bank’s recapitalisation plans as many of its competitors have completed a fresh capital raise in line with the standard set by the Central Bank of Nigeria (CBN).
Recall that the Apex bank, under a new threshold released in March, stated that commercial banks with international authorization must have at least 500 billion naira, leaving banks with two years to meet the new standard.
FBN Holdings, although announced plans to raise some N300 billion through issuance of shares via a public offering in April, the Annual General Meeting (AGM) which is meant to approve it, is yet to take place.
A Lagos Federal High Court halted an AGM initially scheduled for August 22. The meeting is now postponed till September 3, according to a notice published on the NGX.
Investors are worried that these ongoing issues could lead to a further decline in the bank’s fortunes.
“These are the kind of issues that led to the fall of Skye Bank. If care is not taken, many local and foreign investors will pull out,” said an investor who has held shares in the company since 1995. He added, “The troubles are piling up day by day and it seems there is no end in sight. It is even difficult to hold an ordinary Annual General Meeting, not to mention raising capital.”
Ownership Dispute
The ongoing dispute over the ownership of FBN Holdings’ controlling stake has been a major cause of concern for investors. In December 2021, billionaire Femi Otedola became the company’s single largest shareholder.
However, he was soon displaced by Barbican Capital Limited, a company owned by Oba Otudeko, which now claims to hold a 15.01% stake in the company.
Barbican Capital has filed a lawsuit against FBN Holdings, challenging the reduction of its shareholding from 13.61% in December 2023 to 8.67%. The company submitted evidence from the Central Securities Clearing System (CSCS) to support its claim, showing that it actually owns 5.39 billion shares, representing 15.01% of the lender’s total shares.
This ownership dispute, along with the legal battles surrounding it, has further destabilised investor confidence.
‘Illegal’ 2023 AGM
Despite a court order prohibiting FBN Holdings in 2023, the bank proceeded with the meeting and this has resulted in multiple lawsuits filed by aggrieved shareholders.
One of the plaintiffs, Kujenya Olayiwola Yusuf, prayed the court to nullify all decisions made during the August 223 AGM, including the registration of the new share capital.
In another case related to the controversial AGM, a minority shareholder Yetunde Olowoyeye, argued that all the resolutions passed during the AGM are null and void, having been forged in the fires of judicial contempt.
The outcome of these cases, some shareholders say, will impact on the future of the company as a reversal of the decisions made at the AGM could set the bank on a path of collapse.
40 billion Fraud
While there is so much going on in the FBN Holding board room, the banking hall is also not spared of scandals. The bank sacked at least 120 employees after discovering a ₦40bn fraud, Tech Cabal reported in August.
Tijani Muiz Adeyinka, a manager on the operations team who reportedly diverted ₦40 billion over two years, has been on the run for weeks after his heist was discovered in May. The employees dismissed were accused of laxity in carrying out their duties and were told they should have spotted the fraud earlier.
The Tech Cabal report added; “Several employees were questioned by the Nigerian Police Force (NPF) and detained at the Lion’s Building for at least six hours, one person with direct knowledge of the incident said. Those employees needed to post bail before they were released. Restrictions have been placed on all their personal accounts except their First Bank accounts. “
Meanwhile, Lagos-based banking and finance consultant, Hakeem Morakinyo, told POLITICS NIGERIA that FBN Holdings is in a precarious position as these crises continue to unfold.
“The coming weeks will be critical in determining whether the bank can resolve its internal conflicts and restore investor confidence or if it will follow the same path as other failed institutions,” he said.
Credit: POLITICS NIGERIA
By Gloria Ikibah
Senegalese President, Bassirou Diomaye Faye, has been elected as the new Chairman of the ECOWAS Authority of Heads of State and Government, taking over the leadership of the regional bloc at a crucial period for West Africa.
His election was announced during the 69th Ordinary Session of the ECOWAS Authority of Heads of State and Government, held in Lungi, Sierra Leone.
Faye succeeds the outgoing chairman as ECOWAS continues to grapple with regional security challenges, political transitions, economic integration and efforts to strengthen cooperation among member states.
His emergence is expected to usher in a new phase of leadership with a focus on promoting peace, democratic governance, economic development and regional unity across West Africa.
By Gloria Ikibah
Vice President Kashim Shettima has reaffirmed Nigeria’s commitment to a more united, secure and economically integrated West Africa, urging ECOWAS member states to embrace good governance, strengthen democratic institutions and accelerate implementation of the ECOWAS Compact for the Future of Regional Integration.
Speaking on behalf of President Bola Ahmed Tinubu at the 69th Ordinary Session of the ECOWAS Authority of Heads of State and Government and the Summit of the Future in Lungi, Sierra Leone, Shettima said Nigeria remained committed to providing principled leadership in advancing peace, prosperity and regional cooperation.
He began by expressing appreciation to the Government and people of Sierra Leone for hosting the summit and congratulated President Julius Maada Bio on the inauguration of the Julius Maada Bio International Conference Centre.
The Vice President commended President Bio’s stewardship of ECOWAS over the past year, describing his leadership as instrumental in sustaining dialogue and regional solidarity amid political, economic and security challenges.
He also praised the ECOWAS Commission for developing the ECOWAS Compact for the Future of Regional Integration, describing it as a forward-looking roadmap for the region.
He said: “Nigeria reaffirms its unwavering commitment to the Compact, which represents a significant milestone in our regional integration journey. It reflects the collective resolve of Member States to renew the ideals of ECOWAS, strengthen regional solidarity, and build a more resilient, prosperous, peaceful, and people-centred Community capable of meeting the aspirations of its over 400 million citizens.”
According to Shettima, the Compact aligns with ECOWAS Vision 2050 and extends the bloc’s collective aspirations towards 2075 by shifting the focus from an “ECOWAS of States” to an “ECOWAS of the People.”
He reaffirmed Nigeria’s readiness to work closely with other member states to ensure the successful implementation of the Compact’s strategic pillars.
“As the largest economy and one of the key founding members of our Regional Economic Community, Nigeria remains steadfast in its historic responsibility to continue the promotion of regional unity, peace, economic integration, and democratic governance.”
On economic integration, Shettima stressed the need to expand regional trade, industrialisation and infrastructure while supporting the gradual implementation of the ECO single currency.
“Nigeria remains committed to initiatives that remove trade barriers, improve cross-border infrastructure, facilitate the free movement of persons, goods, and services, and create an enabling environment for businesses, entrepreneurs, and investors to thrive across West Africa”, he said.
Addressing governance and security, the Vice President said sustainable development could only flourish in an atmosphere of peace and stability.
He reaffirmed Nigeria’s support for constitutional governance, the rule of law and democratic principles.
“Beyond adventurism, the most effective tool against unconstitutional changes of government and mass protests that are capable of undermining good order is for us to enthrone good governance that delivers more tangible benefits to our citizens. We must also avoid the temptation to tamper with constitutional term limits or exploit constitutional processes”, he noted.
He further reiterated Nigeria’s commitment to establishing the ECOWAS Counter Terrorism Force and strengthening the regional Standby Force.
“Nigeria remains committed to the setting up of the Counter Terrorism Force, and strengthening of the ECOWAS Standby Force in order to enhance counter-terrorism cooperation, intelligence sharing, joint security operations, and preventive diplomacy to safeguard peace and stability across our region”, he added.
The Vice President also highlighted the importance of science, technology and innovation in driving regional development.
He welcomed plans to establish a Digital Single Market and regional frameworks for artificial intelligence, cybersecurity and digital infrastructure.
On youth and women, Shettima described them as West Africa’s greatest asset and called for greater investment in education, entrepreneurship and leadership opportunities.
“Nigeria remains dedicated to advancing gender equality, expanding opportunities for women in leadership and decision-making, investing in education and skills development, supporting youth entrepreneurship, and ensuring that young people are active participants in shaping the future of West Africa”, Shettima said.
Turning to institutional reforms, he stressed the importance of accountability, transparency and sustainable financing in restoring public confidence in ECOWAS.
He also called for stronger regional cooperation in response to changing global geopolitical realities.
On recent tensions within the region, Shettima reiterated Nigeria’s commitment to dialogue and constructive engagement, particularly with the Alliance of Sahel States (AES).
“Nigeria remains firmly committed to dialogue, solidarity and constructive engagement, especially with the AES, as the foundation for preserving the unity, relevance, and future of ECOWAS”, he said.
The Vice President used the occasion to strongly condemn recent attacks on African nationals in South Africa.
Shettima also reminded South Africa of Nigeria’s role during the anti-apartheid struggle.
He disclosed that Nigeria had already evacuated 1,490 of its citizens from South Africa in seven batches and remained prepared to continue diplomatic engagement on the matter.
“Nigeria condemns in strong terms the recent Afrophobic attack on its citizens and other fellow Africans in the Republic of South Africa.
“South Africa should be reminded that the freedom the country currently enjoys is due to the liberation efforts of African countries such as Nigeria”, he stated.
Backing Ghana’s earlier proposal, he urged ECOWAS to table the issue before the African Union.
“ECOWAS should present this matter before the next meeting of the Authority of the African Union to send a clear message that this type of behaviour is unacceptable.”
Vice President Shettima therefore urged governments, regional institutions, civil society, development partners, the private sector, women and young people to support the implementation of the ECOWAS Compact.
“The Compact provides a roadmap to strengthen regional unity, restore public trust, and build a more resilient and people-centred ECOWAS capable of effectively addressing current and future challenges.
“Nigeria will continue to provide principled leadership and work with all Member States to advance our shared vision of a peaceful, integrated, prosperous, secure and globally respected West Africa, in line with our aspirations”, Shettima said.
Presidential candidate of the Nigeria Democratic Congress, Peter Obi, has disclosed reason behind his decision to pick the leader of Kwankwassiyya Movement, Rabiu Kwankwaso, as his running mate.
In an interview with Sun, Obi said he decided to settle for the former governor of Kano State because “Kwankwaso has the philosophy of pulling people out of poverty”.
Obi said himself and Kwankwaso have similar philosophy on reviving the country’s economy to better the lives of citizens.
“I have the same philosophy. Kwankwaso believes in education. You cannot change society without education.
“If you look at my X, formerly Twitter, I made it clear that I will emphasise on education. Education is going to change society.
“Nigeria must be seen to form its innermost human capital, which we need to develop. Kwankwaso believes in this. I do. We have synergy.”
Obi also dismissed speculation suggesting that there is disagreement between him and Kwankwaso, stating that they remain united in strategizing ahead of the January 2027 elections.
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