– In order to protect customers and shareholders, CBN had to fire the board of directors of First Bank.
– First Bank had replaced its managing director Sola Adeduntan with Gbenga Shobo eight months before his term in office.
– The Apex Bank said the leadership change had not been approved, nor had First Bank consulted the CBN.
The Governor of the Central Bank of Nigeria (CBN). Godwin Emefiele stated that customer concerns influenced the decision to dismiss all members of First Bank’s board of directors.
The management changed after Sola Adeduntan was replaced by the the former had been replaced by directors without prior notice from the CBN or without approval from the financial regulator.
Adeduntan was replaced by Gbenga Shobo on Wednesday. That decision was rejected by the CBN, who criticized the former management of First Bank and threatened to punish them with disciplinary action.
The CBN dismissed his word and dismissed all board members and joined his regulatory decision with the protection of the shareholders and customers of First Bank who got into the management crisis.
“After a further review of the situation and in order to maintain the stability of the bank, the The management of the CBN, in accordance with the powers conferred on it by the Banks and Other Financial Institutions Act 2020, approves and hereby instructs:
“The immediate removal of all directors of First Bank of Nigeria Limited and First Bank of Nigeria Holdings Plc. “Emefiele said at the press conference on Thursday.
The sack concerned Ibukun Awosika and her board members, while Gbenga Shobo was excluded as Adeduntan’s deputy in the new management of Adeduntan.
Earnings before and after taxes for the first quarter of this year also decreased, which had an impact on the overall results of Ikeja Hotel. The company was affected by the COVID-19 pandemic.
Due to the virus outbreak, the Ikeja Hotel and other hotel companies were banned for more than four months in 2020, a negative impact on that Ikeja Hotel.