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First Bank Shareholders In Dilemma As Ownership Tussle Continues, Hindering Recapitalisation
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
Budget defense: Senators hammer ministers, top civil servants
Top shots in the executive arm of government, like the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, the Director General of National Orientation Agency ( NOA) Mallam Lanre Issa – Onilu and his counterpart in the News Agency of Nigeria ( NAN) , Ali Mohammed Ali , were separately put under fire in the Senate during 2025 budget defence sessions .
While the Minister of Finance , Wale Edun and the Minister of Budget and Economic planning , Senator Atiku Bagudu were put on hot seats by the Senate Committee on Appropriation, the DG of NOA and that of NAN , had very tough encounters with the Senate committee on Information and National Orientation .
Trouble came the way of the Minister of Finance when barrage of questions were fired at him by some members of the Appropriation committee on state of implementation of the 2024 budget , particularly the capital component .
Specifically , Senator Abdul Ningi ( PDP Baichi Central) , in the barrage of questions fired at the Minister , asked him to explain how proceeds from fuel subsidy removal were expended in the 2024 fiscal year .
” What is the budget performance achieved so far , for 2024 fiscal year , particularly in terms of the capital expenditure.
See also FG Approves Loans to Bolster Financial Position
We haven’t heard from the Minister how much has been saved from the removal of fuel subsidy and how much has been expended .
“We also haven’t heard from the Ministers about the debt servicing. How much have we actually used to service our debt in 2004?
” How much are we expecting to service the debt in 2005? Finally ,will the Minister of Finance guarantee that the extension of the capital component of the 2024 budget to June 30, 2025 will give the desired results in terms of implementation that has a very low percentage now ? ”
Apparently unsettled by the question , the Minister hurriedly requested the committee to accord him a close door session for detailed response to the question .
” Are we in a closed door session ? If we are not in a closed door session , i will humbly seek for that for detailed explanations on the questions asked “, he said .
The Committee Chairman , Senator Solomon Olamilekan ( APC Ogun West ) , according asked journalists to excuse them for the closed door session.
Earlier at the budget defence session the Senate Committee on Information and National Orientation had with agencies under its purview , the Director General of National Orientation Agency ( NOA) , Mallam Issa – Onilu and his counterpart in the News Agency of Nigeria ( NAN) Ali Mohammed Ali , were ordered to re – draft and re – present their budgetary proposals for 2025 fiscal year .
The committee chaired by Senator kenneth Eze ( APC Ebonyi Central), tackled the NOA DG on the National Identity Project being implemented by the Agency by saying the project is not known to Nigerians , particularly, those residing at the grassroots .
But the NOA DG , held his ground by telling the committee members that the project is very necessary in putting in place , the right value system .
” The challenge we have about value system is about National Identity which is very necessary at galvanising Nigerians for Nation building , national development and growth “, he said .
The Committee however insisted that he should go back for re – drafting programmes of the agency to be captured and appropriated for , in the 2025 fiscal year .
Similar fate also befell the Director General of News Agency of Nigeria ( NAN) , who was told to go and reconcile disnointed figures presented in the 2024 budget implementation before coming for appropriation of projected figures for 2025 fiscal years .
News
Teacher remanded in prison for assaulting 3-year-old child
An Ogba Chief Magistrate’s Court in Lagos State has ordered that a 45-year-old primary school teacher, Stella Nwadiggbo, be remanded at a correctional facility for allegedly assaulting a three year old primary school pupil in the Ikorodu area of the state.
The teacher was caught on camera slapping the three year old child in class. The video of the teacher assaulting the child had gone viral.
She was consequently arrested and detained by the Family Support Unit (FSU) of Ikorodu Police Division.
The Lagos State Police Public Relations Officer, Benjamin Hundeyin, who confirmed the latest twist stated that Stella Nwadigbo, aged 45, was arraigned on the orders of the State Commissioner of Police, Olanrewaju Ishola, for indecent treatment and assault of a child.
Hundeyin stated that the accused was arraigned, on Thursday, at a Magistrate’s Court 1, Ogba.
He stated that the accused had been captured in a viral video indecently treating and assaulting a three-year-old pupil of a primary school in Ikorodu area of Lagos State.
“Following receipt of the video, the Family Support Unit (FSU) of Ikorodu Police Division promptly arrested the suspect on Wednesday, January 8, 2025 and transferred her to the Gender Unit of the Command Headquarters same day after preliminary investigations. The victim was taken to a medical facility for adequate medical attention.”
“The suspect has since been remanded to Kirikiri Correctional facility till February 18, 2025 when the case comes up for continuation of hearing” he added.
Hundeyin further stated that the Commissioner of Police, Lagos State Command, commended Nigerians for promptly alerting the police to the situation also, assured them of the ever-readiness of the Command to respond quickly and appropriately to situations towards ensuring the safety and security of resident and visitors to Lagos State.
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VIDEO; Nigeria’s foreign relations: So far, Tinubu has showcased good salesmanship-Dr Nwambu
… but we’re yet to feel the impact now
Director General of Centre for Credible Leadership and Citizens Awareness CCLCA, Dr Gabriel Nwambu has said President Bola Tinubu has showcased excellent salesmanship globally but Nigerians are yet to feel the impact.
Nwambu disclosed this in a chat with TVC where he outlined Tinubu’s moves so far in international relations.
Watch video below:
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