The CBN’s Director, Corporate
Communications, Osita Nwanisobi, disclosed in a statement that 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
the financial institution.
While congratulating Abdullahi on his
appointment, the CBN described Babalola’s resignation as the Chairman of the
company as highly regrettable, especially given the fact that CBN’s regulatory
interventions had made positive impact and increased attractiveness of the
company to both local and foreign investors.
Notwithstanding the recent development, he
said the CBN acknowledged the measured achievements recorded by the company
under Babalola’s watch, and thanked him for his service, even as the CBN wished
him well in his future endeavours.
According to Nwanisobi, the regulatory
measures taken by the CBN were yielding the expected results in terms of
overhaul of corporate governance practices, restoration of confidence in the
bank’s brand, increased transparency and due process in transactions as well as
improved financial performance.
In line with its statutory mandate, the CBN
spokesman said the CBN remained committed to ensuring transparent governance
practices at the bank and the continued independence of the chairman and other
persons holding key governance positions.
Given the systemic importance of First Bank
owing to its historical significance, balance sheet size, large customer base
and high level of interconnectedness with other financial service providers,
the CBN had in April 2021, taken decisive regulatory action to address
corporate governance infractions at the bank leading to the removal of the
board of First Bank Ltd and FBN Holdco Plc and appointment of a new board.
Abdullahi is an economist and thorough-bred
professional with long years of experience in the academia, banking supervision
and financial regulation, retiring as Director of Banking Supervision, CBN in
February 2020. An expert in bank crisis resolution, he also serves on the boards
of the Africa Finance Corporation (AFC), FMDQ, NDIC & AMCON.
The Chairman of Geregu Energy Group and
billionaire businessman, Mr. Femi Otedola during the week debunked speculations
that he was interested in holding any board position in FBN Holdings, First
Bank or any of their subsidiaries.
“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 speculations is
not to become chairman of the bank or its holding company (Holdco). Moreover, I
am in semi-retirement,” he had explained.
Otedola had praised the financial
institution, saying “being the single largest shareholder doesn’t mean I must
necessarily hold a position in the bank. I believe in allowing competent people
run institutions in a professional manner and to the benefit of all the
stakeholders.”
The billionaire recently acquired an
additional 2.5 per cent in FBN Holdings Plc, raising his stake to become the
single largest shareholder in the company with a total shareholding of 7.5
percent.
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