First Bank Shareholders Seek Removal Of Femi Otedola As Chairman Over Alleged Fraud

A group of shareholders at First Bank of Nigeria Holdings Plc has called for the removal of Chairman Femi Otedola, citing concerns over his leadership and alleged fraud.

According to Peoples Gazette, these shareholders, who collectively own 10% of the company, have requested an Extra-Ordinary General Meeting (EGM) to be held within 21 days, as stipulated by Section 215 (1) of the Companies and Allied Matters Act (CAMA).

The shareholders alleged that Femi Otedola became chairman of FBN Holdings through a major share acquisition facilitated by former Central Bank of Nigeria (CBN) Governor, Godwin Emefiele.

They further claimed that the bank’s former CEO, Adesola Adeduntan, played a role in supporting Mr. Otedola’s takeover, allegedly under directives from Mr. Emefiele.

The group also claimed that Mr. Otedola assumed his position without obtaining necessary security clearances from the State Security Service (SSS) and the Economic and Financial Crimes Commission (EFCC).

After his takeover, they said, he removed key personnel, including the then-chairman Tunde Hassan-Odukale, Executive Director Tosin Adewuyi, Group Head Folake Ani-Mumuney, and non-executive director Ijeoma Nwogwugwu, who had written a critical article.

The shareholders accused Femi Otedola of consolidating power within the bank, installing personal associates in key positions, and planning to use a proposed N360 billion private placement to gain unchecked control.

They fear this move could turn the bank into a personal asset, compromising its governance and financial integrity.

Another significant concern among the shareholders is that they accuse Otedola of treating the bank as if it were his personal property, making decisions without consulting others.

The report also highlighted Mr. Otedola’s alleged history with non-performing loans that were sold to the Asset Management Corporation of Nigeria (AMCON).

The shareholders believe his current position would not have been possible without the backing of Mr. Emefiele.

Adding to the controversy, it was reported that the African Export-Import Bank (Afreximbank) has granted Mr. Otedola a $45–50 million loan (approximately N90 billion).

Sources claimed the loan will enable him to dominate the proposed private placement, though some shareholders argue for a rights issue or public offer to ensure broader participation.

This development follows a recent organizational restructuring that saw about 100 senior staff laid off, including top executives.

The restructuring is part of FBN Holdings’ repositioning strategy for 2025 under the leadership of its new CEO, Olusegun Alebiosu, confirmed in June 2024.

This comes a few months after Femi Otedola accused Jim Ovia, chairman of Zenith Bank, of using his company Seaforce Shipping Limited’s account for trading in 2011 without his knowledge or consent.