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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
News
It’s Awful For Akpabio To Humiliate Female Senators, Kingibe, Natasha;– Ex-Minister Ezekwesili
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By Kayode Sanni-Arewa
Ex- Nigerian minister of education, Oby Ezekwesili, has slammed Senate president, Godswill Akpabio, over his alleged misconduct towards female lawmakers.
In a statement issued on Monday, Ezekwesili expressed concerns over Akpabio’s behaviour, citing instances where he allegedly humiliated female senators, including Natasha Akpoti and Ireti Kingibe.
Recall on Saturday that Senator Natasha Akpoti-Uduaghan spoke out about the harassment and exclusion she has faced in the Senate, citing a pattern of behaviour that began after a nightclub incident last year.
In an interview with the Brekete Family, where Akpoti-Uduaghan had revealed that she had been denied privileges, pulled out of international activities, and even had her name struck out from a United Nations event she was nominated for.
The senator claimed that she had been self-funding her trips to international events, which she believed are important for her constituents, Nigerian women, and the country as a whole.
She had also alleged that her seat in the Senate was changed to a location where she would be less visible, suggesting that this was an attempt to silence her or eliminate her from being seen.
Akpoti-Uduaghan’s allegations came after Senate President Godswill Akpabio faced criticism for his sexist remarks against her, with over 300 women groups demanding an unreserved apology.
The incident highlights concerns about gender discrimination and verbal harassment in Nigeria’s political institutions.
Reacting in her statement, Ezekwesili encouraged women in public leadership to stand strong and continue to represent their constituents, emphasising that representation matters.
The former presidential candidate, also warned Akpabio that he would face consequences if he continued to harass women in public leadership.
The statement she shared on her X handle partly read: “I tweeted last year that if not for the rottenness of our Judiciary, Nigerians would not have an @Senator_Akpabio presiding over the upper house of our @nassnigeria – the Nigerian Senate @NGRSenate.
“That statement has been given proof by Mr Akpabio himself in the nearly 2 years of his “leadership” of the Senate.
“One issue stands out. Mr Akpabio implicitly thinks that his even more accomplished female colleagues must be humiliated in order for his ego to be assuaged.”
Ezekwesili added, “Is it not a shame that one day it is @NatashaAkpoti , another day @IretiKingibe and yet another day @NatashaAkpoti that are at the receiving end of the appalling misconduct of the topmost officer of our Legislature?”
“And we wonder why Nigeria shamefully places at the lowest neighborhood of the ranking of countries on Women in public leadership , specifically Legislature at 4.4%.
“I encourage the women in public leadership to never ever lose their Voice. Continue to stand strong in your commitment to citizens and prove that representation matters.
“All aspects of data do in fact show that representation matters a lot.”
The former Vice President of World Bank (Africa Region), warned Senate President to be prepared to face what would come to him next time he harasses any woman well-elected unlike him.
“Next time Mr Akpabio harasses any woman well-elected unlike him and representing her constituency @ the National Assembly or any woman at all anywhere in this country, he must get ready. Enough said.”
Guardian
News
BREAKING: Again , Dangote Slashes Diesel And Petrol Prices
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By Kayode Sanni-Arewa
Again, the Dangote Petroleum Refinery has announced a reduction in the price of Premium Motor Spirit (PMS) and Diesel on Monday.
The refinery slashed the price of petrol from N960 to N890 per liter while diesel now sells at N1020 per liter from N1075
The latest development comes as Dangote refinery continues to ramp up production, positioning itself as a key player in Nigeria’s fuel market.
The price cut is expected to ease the burden on businesses and individual struggling with high transportation and Operational costs
News
Delta North: Court asked to declare Ned Nwoko’s seat vacant over illegal defection
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By Kayode Sanni-Arewa
The Federal High Court in Abuja has been asked to declare the Delta North Senatorial seat vacant, following the defection of Senator Ned Nwoko to the All Progressives Congress (APC).
The court was urged to direct the Independent National Electoral Commission (INEC) to conduct a bye-election in the Delta North Senatorial District within 60 days of delivering judgement in the matter.
The legal action was instituted by Senator Nwoko’s constituent and member of the Peoples Democratic Party (PDP), Marvis Ossai.
Aside from Senator Nwoko, the INEC, PDP, and the Senate were cited as defendants in the matter.
Upon the determination of the question by the court, he prayed among other reliefs, for “an order of this Honourable Court, directing the Independent National Electoral Commission, INEC– the 2nd Defendant – to conduct a bye-election into the Delta North Senatorial District of the Nigerian Senate within sixty (60) days from the date of the delivery of Judgement herein.
“An order of this Honourable Court declaring vacant the seat of Ned Munir Nwoko and cancelling his Certificate of Return issued to him by the Independent National Electoral Commission.
“An order of this Honourable Court mandating the 1st Defendant, Nwoko, to refund into the Consolidated Revenue Fund of the Federation, forthwith, all the salaries, emoluments and allowances received by him since January 2025 until the date of the final judgement in this matter.
“An order disqualifying the 1st Defendant from standing election into any elective post under the amended 1999 Constitution of the Federal Republic of Nigeria until and unless he complies with every term of the judgement in this suit.”
As well as, “An order mandating the 4th Defendant (Senate) to immediately give effect to the judgement of this Honourable Court.”
In a five-paragraph affidavit deposed to by one Ibrahim Isa, the plaintiff told the court that Senator Nwoko had on January 30, resigned from the PDP which was the political party on whose platform he was elected to occupy the Delta North Senatorial seat till 2027.
According to the plaintiff who told the court that he is from Oshimili North Local Government Area in Delta North Senatorial District, Nwoko’s continued stay in office after his defection would amount to a gross violation of the constitution.
“That since when the 1st Defendant decamped from the PDP up to the present moment of initiating the instant suit, there is never any division in the National Leadership of the People’s Democratic Party (PDP).
“That the ideology of the 1st Defendant’s new party, All Progressives Congress (APC), to which the 1st Defendant now fully subscribes, does not bear any similarity or represent the political philosophy of the People’s Democratic Party [which is the basis upon which the Plaintiff resolved to cast his vote for and elected the Defendant in 2023.
“That the conduct of the Defendant in defecting from the People’s Democratic Party to All Progressives Congress has dealt a major blow to the fortunes of the Plaintiff’s Party, the People’s Democratic Party
“That the conduct of the 1st Defendant being challenged herein if not condemned and upturned by this Honourable Court will continue to encourage political harlotry, legislative rascality and destroys the reasons for the laws made to regulate the defection of National Assembly Members by the Constitution of Nigeria itself.
“That the continuous stay of the 1st Defendant at the Federal Senate of the Federal Republic of Nigeria does no longer represent the Plaintiff’s interest or that of thousands of other members of our constituency who voted him in on the basis of our faith in our Party’s manifesto which they believed the 1st Defendant was capable of representing in the Federal Senate of the Federal Republic of Nigeria.
“That the Defendant is now representing adverse interests of the people who fought the Plaintiff’s party tooth and nail [in the year 2023] to forestall the emergence of the 1st Defendant as the Member Representing DELTA NORTH SENATORIAL DISTRICT Federal Constituency on the platform of the People’s Democratic Party, (PDP).
“That time is of the greatest essence in the instant application.
“It will be in the interest of justice for this Honourable Court to grant the prayers contained on the face of this Originating Summons.”
Meanwhile, the suit is yet to be assigned to any judge for a hearing.
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