According to the apex bank, the over 100 years old bank is
too big and strategic for one individual to own outright.
The CBN governor, Godwin Emefiele who spoke with journalists
on Tuesday after the Monetary Policy Committee’s two-day meeting at the CBN
headquarters in Abuja, stated that the regulator will ensure that the right
things are done regarding the shareholding tussle at First Bank of Nigeria.
Emefiele said that the Securities and Exchange Commission
(SEC), the capital market regulator is responsible for issues relating to
shareholding.
“As it affects the running and operations of the bank, we
(CBN) will take preeminence in ensuring that the right things are done,” he
said.
According to Emefiele, the First bank is very relevant to
the Nigerian banking sector because it is the oldest bank in the country.
“Remember that First Bank was established in 1894 and is the
oldest bank in Nigeria. It is a powerful domestically significant bank in
Nigeria. If anything happens to First Bank, it means that something has gone
wrong with the Nigerian banking system. And it is for this reason that we are
taking advice on how to keep the bank afloat very seriously.“
“Six years ago, as a result of the accumulation of
non-performing loans on the books of First Bank, the fair value of the share
price was approximately N2 per share, and we took it on while everyone else was
fleeing. Because we have cleaned up the balance sheet, non-performing loans
have dropped dramatically. People are seeing that First Bank is returning to
profitability and are now competing for a stake in the company,” Emefiele said.
He added, “Why should I argue that people are competing for
the shares of First Bank, which was N2 six years ago and they fled from it? I
looked at First Bank’s share price, it was N11.55kobo over the weekend. I am
pleased to see that they are competing for First Bank shares. Of course, we all
know that First Bank is so large that no single person can own it. In running
the banks, they should see themselves as representing others.”
“Naturally, returns are sent to CBN about individual
shareholders. And of course, if our position is not in tandem with that of SEC,
we will talk to SEC about it.
“So far, I think we should take the position of SEC as the
regulator of the capital market because regulating share price and ownership is
the sole responsibility of SEC.
“We would not want to override SEC on these issues but we
will continue to work with them. We have a very good relationship with them.”
Emefiele’s assertion on the First bank is coming on the
heels of the ownership tussle between Femi Otedola and Tunde Hassan-Odukale,
following the former’s 5.07 per cent acquisition of First Bank shares in
October.
Following the acquisition, speculations became rife that the
business magnate had become the single largest shareholder and was in a pole
position to take over as chairman of FBN Holdings Plc, the parent company of
First Bank of Nigeria.
FBN Holdings filing at the Corporate Affairs Commission
(CAC) later showed that Tunde Hassan-Odukale owns 5.36 per cent shares of the
company.
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