First Bank: Otedola, The Battle For Control Continues

By Fola James

The appointment of Ahmad Abdullahi as the new chairman of First Bank Holding Plc has opened a new vista in the battle for the control of the oldest commercial bank in the country. Abdullahi was appointed on Friday to replace Remi Babalola, a former Nigeria’s Minister of Finance who departed the bank unceremoniously.

The development comes barely one month after Nnamdi Okonkwo was appointed the Group Managing Director of First Bank Holdco

The bank did not give any reason for the exit of Babalola, who was appointed by CBN Governor Godwin Emefiele, early in the year to replace Mrs Ibukun Awosika following the botched removal of Dr Adesola Adeduntan as the managing director of First Bank Nigeria, FBN.

But the magazine learnt that the resignation of the former minister may not be unconnected with the emergence of Otedola as the single largest shareholder of the bank.

It was also learnt that Babalola was not forced to resign from the bank but “he decided to leave as a result of the new realities in the bank because he did not want to be caught up in the intrigues among major owners of the bank who are battling for the soul of the bank,” a top source in the bank told the magazine late Friday.

The source who craved anonymity, further informed the magazine that “the appointment of Abdullahi as chairman of Holdco is not unconnected with the ongoing restructuring of the bank as  a result of the recent development concerning its ownership.”

Even though the very reliable source failed to say whether the new appointee was nominated by the Otedola, the source explained that “the businessman has the power to nominate his proxies to the board of FBN and its parent company, following his acquisition of over seven per cent stakes in the bank recently as required by the law”.

On December 9, the business magnate wrote the management of the bank detailing his shares in the bank. Otedola said in the letter that his stakes in the bank include 210 million he holds directly, 1.989 billion through Calvados Global Services Limited, 170 million through Primrose Global Concept, 175 million through Shetland Global, 120 million through Wells Properties and 53 million through Impetus Synergy.

“I have recently acquired additional shares in FBN Holdings Plc (the Company) which has brought my total stake to 7.57 per cent of the issued shares capital of the Company.

“Section 120 of the Companies and Allied Matters Act requires that I give notice in writing o the Company stating amongst other things, the particulars of the shares held by me or my nominees by virtue of which I am a substantial shareholder,” the businessman said in the letter.

Few days after he wrote the letter, Otedola also told reporters in Lagos that he’s not interested in becoming the Chairman of the bank’s holdco as being wrongly speculated. He, however, did not say whether he will nominate persons to represent his interest in one of the nation’s most respected financial institutions.

Speaking on his reported quest to control the bank Otedola said, “as the single biggest stakeholder in the lender, the extant financial laws allow him to nominate persons of his choice into the two boards of the bank.

“Being the single largest shareholder doesn’t mean I must necessarily hold a position in the bank. I believe in allowing competent people to run institutions in a professional manner and to the benefit of all the stakeholders,” he said.

“That is an institution with a world-class corporate governance structure and a strong performing management that creates value and guarantees returns in form of dividends and capital appreciation.”

“I am simply an investor who saw an opportunity in the financial institution and decided to take advantage of it through the investment I have made. My interest, contrary to speculation, is not to become chairman of the bank or its Holdco. Moreover, I am in semi-retirement,” the businessman said.

Meanwhile, the CBN has approved the appointment of Abdullahi as chairman and non-executive director of First Bank Holding Plc.

“The bank had been duly notified of the resignation of Babalola, as chairman of the company against the backdrop of contest by some significant shareholders for control of First Bank Holding Plc,” Osita Nwanisobi, CBN’s Director, Corporate Communications, said on Friday.

The apex bank also described Babalola’s resignation as the chairman of the company as regrettable, adding that the bank has made measured progress since the former finance minister become the chairman of First Bank holdco.