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Oba Otudeko Sets First Bank On Fire

Published

5 years ago

April 28, 2021

Editor

By Michael Effiong

These are not the best of times for one of Nigeria’s financial powerhouses, First Bank Nigeria Plc. The bank is on fire and has ran into troubled waters with the Central Bank of Nigeria (CBN).

The CBN is unhappy with First Bank over the financial machination of its one-time Chairman, Dr. Oba Otudeko who incidentally is the current Group Chairman of First Bank Holding Company. That is not all, the nation’s apex bank has also frowned at the sudden announcement Mr Gbenga Shobo as the new GMD/CEO of the bank without due process.

In a letter dated April 26, 2021 with serial No: BSD/GBB/CON/FBN/01/028 titled RE: AUDITED IFRS ACCOUNTS FOR THE FINANCIAL YEAR ENDED DECEMBER 31, 2020, the CBN expressed its concern that First Bank has not complied with regulatory directives to divest its interest in Honey Well Flour Mills despite several reminders.

The strongly-worded letter signed by Haruna B. Mustapha, Director of Banking Operations and copied to all Board members and Major Shareholders continued “We further noted that after 4 years the bank is yet to perfect its lien on the shares of Mr. Oba Otudeko in FBN Holdco which collaterized the restructured credit facilities for Honey Well Flour Mills contrary to the conditions precedent for the restructuring of the company’s credit facility.

“Given the bank’s failure to perfect the pledge and satisfy condition for regulatory approval, the restructuring has thus been invalidated and the credit facilities now payable immediately.

“Consequently, the company is required to fully repay its obligations to the bank within 48 hours failing which the CBN will take appropriate regulatory measures against the insider borrower and the bank.

“Furthermore, the Bank notes the untenable delay in resolving the long standing divestment from Barti Airtel Nigeria Limited in line with extant regulations of CBN”

The CBN also instructed that it must divest from all non permissible entities such as Honey Well and Barti Airtel within 90 days.

In addition, First Bank was instructed to provide evidence of compliance in accordance with the timelines stated above to the Director of Banking Supervision.

When it rains it pours and the heat is seriously on First Bank as the CBN has also written another letter titled “Purported Management Change At First Bank Nigeria Limited”.

Also signed by Haruna B. Mustafa, this particular letter noted that CBN’s attention has been drawn to media reports that the Board of Directors has approved the removal of the current Managing Director of the bank, Dr. Sola Adeduntan and appointed a successor.

The apex bank stated that it was concerned that this action was taken without due consultation with the regulatory authorities especially given the systemic importance of First Bank Ltd.

The Bank noted that since Adeduntan’s tenure was yet to expire and there was no report from the Board of any infraction, there therefore appears to be no apparent justification for the removal.

The CBN said it was particularly concerned because the purported removal of Adeduntan was coming at a time the CBN has provided various liquidity support to reposition the bank.

Adding “It is also curious to observe that the sudden removal of the MD/CEO was done about eight months to the expiry of his second tenure which is due on December 31, 2021.

“The removal of a sitting MD/CEO of a systematically important bank that has been under regulatory forbearance for 5 to 6 years without prior consultation and justifiable basis has dire implications for the bank and also portends significant risks to the stability of the financial system.

It has instructed First Bank to explain why disciplinary measures should not be taken against the Board for hastily removing the MD/CEO and failing to give prior notice to the CBN before announcing the management change to the media.

The bank is expected to respond on or before 5pm on Thursday, April 29, 2021.

There is no doubt that these are trying times for Nigeria’s oldest bank, we would keep you posted on how this drama unfolds in the next couple of days.

Related Topics:Adeduntan First Bank First Bank of Nigeria Oba Otudeko

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UK Orders Airspace Restrictions, Road Closures for Tinubu’s State Visit

Published

2 days ago

March 12, 2026

Eric

Authorities in the United Kingdom (UK) have announced temporary airspace restrictions and road closures in Windsor ahead of President Bola Tinubu’s State visit to the country.

Britain’s monarch, King Charles III, will host Tinubu and First Lady Oluremi Tinubu at Windsor Castle on March 18 and 19, 2026.

State visits represent the highest level of diplomatic engagement hosted by the British monarch.

According to Thames Valley Police, extensive security measures will be implemented in Windsor during Tinubu’s state visit, including an expanded airspace exclusion zone and a large-scale policing operation.

The castle already operates under a permanent airspace restriction, but authorities said the exclusion zone will be extended on March 18 between 07:00 and 23:59 GMT.

Police warned that anyone who breaches the restriction will “likely” face arrest.

Security operations will involve search teams, armed units, mounted officers, and road policing officers. Neighbourhood officers and Project Servator teams will also conduct patrols across the town to deter and detect criminal activity while engaging with the public.

Officials added that Windsor’s extensive CCTV network and hostile vehicle mitigation barriers will also be used as part of security arrangements.

Ch Supt Adrian Hall of the joint operations unit said:

“As a force, we have a vast amount of experience in policing royal events in Windsor, and significant planning and preparation have gone into this event.

“We will ensure everyone attending the state visit, including dignitaries, spectators, and members of the public, are kept safe to enjoy the historic occasion.”

Authorities said several road closures and parking restrictions will begin on March 17 ahead of Tinubu’s State visit, warning that motorists may experience temporary disruption on roads in and around Windsor.

Some footways and pedestrian crossings in the town centre will also close periodically between 09:30 and 12:30 on March 17 and 18 for a ceremonial procession.

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False and Misleading: Senator Ireti Kingibe Not Suspended, Says ADC

Published

2 days ago

March 12, 2026

Eric

The African Democratic Congress, ADC, has dismissed reports that Senator Ireti Kingibe has been suspended from the party, describing the claims as false and misleading.

Kingibe currently represents the Federal Capital Territory in the Senate.

In a statement issued on Thursday, the party’s National Publicity Secretary, Bolaji Abdullahi, said the ADC is not aware of any decision to suspend the senator and urged the public to ignore the circulating reports.

Abdullahi emphasized that the party has well-defined constitutional procedures for handling allegations involving its members.

“The African Democratic Congress is unaware of any suspension of Senator Ireti Kingibe, the distinguished Senator representing the Federal Capital Territory,” he said.

He added that as a law-abiding political party, the ADC follows established internal mechanisms when dealing with issues concerning its members rather than addressing such matters through media statements.

“As a law-abiding political party, the ADC has clear constitutional procedures for addressing any allegations involving its members. Such matters are handled through established internal mechanisms, not through press statements,” Abdullahi stated.

The party therefore called on the public and media organizations to disregard the reports of Kingibe’s alleged suspension.

“We therefore urge the public and the media to disregard the reports suggesting that Senator Ireti Kingibe has been suspended by the party, as they are false and misleading,” the statement added.

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Tambuwal Finally Dumps PDP, Defects to ADC

Published

2 days ago

March 12, 2026

Eric

Former Governor Aminu Tambuwal has announced his defection from the Peoples Democratic Party to the African Democratic Congress.

“I write to formally tender my resignation as a member of the Peoples Democratic Party (PDP), effective from today,” the letter stated.

Mr Tambuwal stated that the party’s persistent internal crisis, leadership disagreements, and divisions at various levels made it difficult for him to continue his active participation and commitment as a member.

“The ongoing conflicts have, unfortunately, worsened the unity and direction that once defined the party,” the former Sokoto governor stated.

Meanwhile, in a statement on X on Thursday, Mr Tambuwal said he had officially joined the ADC with his associates and supporters.

“I am convinced that this decision is guided by my belief that Nigeria needs a stronger political platform built on integrity, accountability, inclusiveness, and a clear commitment to national development.

“I remain fully committed to the service of our country and to the ideals of democracy, justice, and national unity,” the former governor stated.