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Oba Otudeko Sets First Bank On Fire

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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.

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Breaking: Wike Plans to Attend Thursday’s PDP NEC Meeting

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By Eric Elezuo

The immediate past Governor of Rivers State, and Minister of the Federal Capital Territory (FCT), Mr Nyesom Wike, may have concluded plans to attend the much advertised National Executive Council (NEC) meeting of the main opposition party, the Peoples Democratic Party (PDP), billed to hold on Thursday, in Abuja.

Impeccable source, who is in the know, told The Boss that the minister, whose membership of the PDP is yet to be revoked even as he frolicks with the ruling All Progressives Congress (APC), and serving in the President Bola Tinubu government as a minister.

The Source told The Boss that Wike’s impending presence at the NECeeting on Thursday is not unconnected with plans, already hatched with some governors, to weaken the opposition PDP.

“Yes, we have on good authority that FCT minister, Wike is planning to attend the NEC meeting tomorrow all in a bid to weaken the fabrics of the PDP, and pave the way for the continuation of the Tinubu administration come 2027, and by extension, relapse Nigeria to a full blown one party state.

“From every indication, Wike and his co-travellers, are bent on unleashing the same crisis ravaging the third force, Labour Party, and Senator Rabiu Kwankwaso’s Nigerian National People’s Party (NNPP) on the PDP for the APC to remain the only political party in the country, and ensure that Tinubu has no challenger, come 2027,” the Source said.

It would be recalled that Wike has boasted over and again that there’s no opposition against Tinubu’s re-emergence in 2027, and that they have made sure of that. He has been compensated with the Ministerial job after he withdrew support for his party, and supported the APC and Tinubu to emerge as national government.

The Source further revealed that in the attempt to actualize the intended one party  state, a lot of funding is ongoing to ensure that concerned stakeholders are ‘settled’ handsomely.

Wike, prior, during and after the 2023 general elections, has been floating in between the two major political parties; the APC and the PDP. While he claim to still be a member of the PDP, he is functioning as a minister in an APC government, mocking the inability of his party to discipline him.

Political stakeholders have concluded that the outcome of Thursday’s PDP NEC meeting will determine the path Nigeria’s political trajectory will take, and that it may portend the end of multi-party system and political democracy if Wike succeeds in his plan.

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Bribery, Corruption: APC Suspends National Chairman, Ganduje

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The All Progressives Congress ward in Ganduje, Dawakin Tofa Local Government Area, has suspended the party’s National Chairman, Dr. Abdullahi Ganduje.

The party ward legal adviser, Halliru Gwanzo, announced the suspension while addressing newsmen in Kano State on Monday.

Gwanzo cited allegations of bribery against Ganduje levelled by the Kano State Government as the reason for the suspension.

“We decided to suspend Dr. Abdullahi Ganduje from the party due to the seriousness of the allegations against him,” Gwanzo said.

Meanwhile, efforts to contact the Chief Press Secretary to the APC National Chairman, Mr Edwin Olufo, failed as his mobile phone was unreachable.

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Akpabio Commits to Collaboration with Tinubu, Governor Umo Eno

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The President of the Senate, Godswill Akpabio, has stated his commitment to working closely with Nigeria’s President, Asiwaju Bola Ahmed Tinubu, and Governor Umo Eno to ensure the delivery of democratic benefits to the people of Akwa Ibom State.

Akpabio stated this in his country home, Ukana, Essien Udim Local Government Area of Akwa Ibom, while briefing his constituents on the journey so far as their representative in the red chamber.

He assured the people of Akwa Ibom North West Senatorial District of his commitment to their welfare in appreciation of their total support for him, President Bola Tinubu and the ruling All Progressives Congress (APC) in last year’s election.

The Highpoint of the constituency briefing was the distribution of over 10,000 bags of rice and other essentials for his constituents from the wards, to the local governments.

A statement by his Special Assistant on Media, Jackson Udom, quoted Akpabio as saying, “I am here once again, to thank you for standing by me, our President and the party, before, during and even after last year’s elections. I have come to say thank you and also bring Renewed Hope to you all.

“As the President is doing his own, the Senate President is also doing his bit and being complemented by the state governor, Akwa Ibom would be the better for it. We have finished elections and politics, we are now into governance. The governor of the state must touch you, because he is the governor of all the people in the state irrespective of political affiliation.

” As I am touching you now from the political angle, I will also touch the state without any political party affiliation. Most of the projects we are putting in place would be used by people resident in the state. Relax, things are getting better.”

The former Governor of the state, assured his constituents that his current position as the Senate President would be used for the development of the state in collaboration with the President and the Akwa Ibom State Governor.

Hear him: This Senate President is not the one that would be fighting the state government. I will collaborate with , I will collaborate with , to make the state better for us all. We cannot be out of government for a long time. You have to go to a government that carries you along”

Akpabio promised to work for his constituents and Nigeria with all his strength, noting that, “as the President of the Senate, I am for the Southern region and the entire country. I may not come here regularly to tell you what I have been doing for you, but you will be feeling the impact on way or the other. Our unemployed youths would be gainfully employed. I will construct a mini stadium in all the local governments in the district, for our youths to develop their sporting potentials. ”

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