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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.

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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.

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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

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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.

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‘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.

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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.

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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

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Immigration raises alarm over high number of irregular migration in Nigeria

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The Edo State Controller of the Nigeria Immigration Service, Martins Moye, has raised the alarm over the increasing number of irregular migrants entering Nigeria.

Moye raised the alarm at the 2024 Nigeria Immigration Service, NIS, enlightenment campaign against irregular migration in Benin, Edo State capital.

He underscored the need for public awareness to curb irregular migration.

A facilitator from NIS headquarters in Abuja, David Amanahu, highlighted Edo State’s historical role in irregular migration.

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According to him, due to recent efforts by the Edo State Command, the state has improved in the national ranking on irregular migration.

“The positive news is that Edo State is no longer ranked number one in irregular migration.

“Credit goes to the dedicated team in Edo who worked tirelessly to improve the situation,” Amanahu stated.

Amanahu, while delivering a message from the Controller-General of Immigration, Kemi Nandap, noted that the NIS is now more focused than ever on border management and migration issues.

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Boundary disputes responsible for insecurity in coastal states – Oborevwori

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Delta State Governor, Sheriff Oborevwori of Delta has said that boundary disputes were also responsible for the rising spate of insecurity, deaths, violence and retarded progress in the country.

The governor stated this while addressing an audience at a one-day workshop for the creation of a platform for Nigeria’s coastal states and local government areas, held at the Government House, Asaba.

The workshop has the theme, “Towards a Secure, Peaceful and Prosperous Borders,” the News Agency of Nigeria reports.

There are many crises in the country over border issues, with Delta State having its fair share.

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The boundary crisis between the Okuama community in the Ughelli South Local Government Area and the Okoloba community in the Bomadi Local Government Area, which had claimed many lives, is being resolved by the government.

Speaking at the workshop, the governor said so many lives had been lost to boundary disputes as he called on the National Boundary Commission and other stakeholders to work assiduously in resolving such disputes in the country.

He described the theme as apt, adding that boundary dispute was an ancient and modern disease of humanity.

He said right from the colonial days, Nigeria had been plagued by boundary disputes, which had disastrous and destabilising consequences for the people.

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“There is scarcely any state in Nigeria that has not been involved in a boundary dispute with its neighbours, which often results in displacement, death, and destruction.

“Reports indicate that between January 2018 and August 2022; 676 people were killed in various communal and boundary clashes in Nigeria.

“The causes of these disputes are traceable to land ownership, community pride, ancient or colonial boundaries, and socio-cultural factors.

“In Delta State, it is safe to say that at least 80 per cent of boundary disputes revolve around land use, either for farming, mining, and other purposes of economic significance.

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“The resultant clashes often leave in their trail a chunk of internally displaced persons with the implication this has for their safety and wellbeing.

“As we all know, the living conditions in IDP camps are unsanitary and inevitably constitute environmental hazards,” he said.

Oborevwori charged the National Boundary Commission to work harder in resolving boundary disputes across the country.

“As the body responsible for resolving boundary disputes in Nigeria, the National Boundary Commission is critical to the peace, security, and prosperity of our communities.

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“It is incumbent on it to embark on enlightenment and sensitisation programmes to educate the people on the importance of respecting boundaries.

“It must also properly investigate cases of boundary disputes. In discharging this vital responsibility, officials of the Commission must demonstrate the highest levels of objectivity, neutrality, and integrity to instil confidence and elicit the goodwill of the people.

“Conversations break down fast once there is a perception of favouritism or nepotism on the part of those who are supposed to be impartial arbiters,” he said.

He added, “It goes without saying that an effective conflict resolution mechanism is critical for maintaining national security.

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“Hence, there is a need for strong political will on the part of the government to implement recommendations that will resolve disputes amicably, and prevent future border disputes.

“With enhanced peace and security at the core of our MORE agenda, we are committed to partnering with the Commission to discharge its functions effectively for a secure, peaceful, and prosperous Nigeria.”

In his welcome remarks, the Deputy Governor, Monday Onyeme, expressed delight that the African Union Border Governance Strategy would look into good border governance and the attainment of sustainable development.

Onyeme, who doubles as the Chairman of the State Boundary Commission, urged the African Union to sustain the tempo to ensure the harmonisation of all grey areas along the boundary communities.

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He observed that the European colonisers arbitrarily, without due regard to the ethnic homogeneity of many African groups, forced Africans to belong to different nations, while diverse heterogeneous communities were hurriedly bundled into a single nation with distinct boundaries.

On their part, the deputy governors of Bayelsa and Rivers states, Lawrence Egwhrudjakpor and Prof Ngozi Odu, respectively, called on relevant authorities to discuss boundary issues often, to enthrone peace in the country.

Earlier, the Director-General of the National Boundaries Commission, Mr Adamu Adaji, said the workshop was primarily designed to engage Nigeria’s coastal states, local government areas and traditional rulers on effective border governance in Nigeria.

The NAN reports that stakeholders, including some traditional rulers from the South-West and South-South states, attended the event.

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Obaseki embarks on post-tenure medical vacation

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The immediate-past governor of Edo State, Godwin Obaseki, has proceeded on vacation.

This is for him to rest and undergo a medical check-up, after a successful two-term as governor of the state.

This was disclosed in a statement by his media adviser, Crusoe Osagie, on Wednesday.

The former governor completed his two-term administration on November 11, 2024, and a new governor, Monday Okpebholo, was sworn in on Tuesday, November 12, 2024.

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Osagie said, “Following the completion of his second term, a former Governor of Edo State, Godwin Obaseki, has proceeded on vacation to rest and undergo a medical check-up.

“Obaseki, once again, expressed his appreciation to God Almighty, the people of Edo State and Nigeria for the opportunity to serve.

“He urged all Edo people both at home and in the diaspora to continue to be hopeful and pray for the peace, progress and prosperity of our state and Nigeria.”

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