A group of concerned shareholders of First Bank of Nigeria (FBN) has called for urgent regulatory intervention to address a growing power tussle within the bank, as well as allegations of financial mismanagement involving top executives.
The shareholders, who claim to control 10% of the bank’s total shares—slightly above the 9.14% stake held by the Chairman of FBN Holdings, Femi Otedola—allege that he has exercised an overbearing influence on the institution.
They accuse him of turning the bank into a personal enterprise by appointing loyalists to key positions and pushing for a private placement of ₦360 billion shares.
The group insists that a private placement, rather than a rights issue or public offer, could be a strategic move to deepen Otedola’s control over the bank, potentially marginalizing other stakeholders in Nigeria’s oldest financial institution.
Beyond the leadership tussle, the shareholders also raised concerns over two major fraud cases allegedly involving past and present officials of the bank.
One case involves a former Chairman of the bank’s Holding Company, Oba Otudeko, who, along with three others, has been accused by the Economic and Financial Crimes Commission (EFCC) of fraudulently securing ₦30 billion in improper loans.
The case has been taken to court, but Otudeko is reportedly on the run to evade investigation and justice.
In a separate case, an FBN staff member allegedly diverted ₦40 billion by exploiting digital banking systems.
The bank’s management has already reported the matter, but shareholders are demanding stronger regulatory action.
Citing Section 214(1) of the Companies and Allied Matters Act (CAMA) 2020, which allows shareholders holding at least 10% of a company’s paid-up share capital to call for an Extraordinary General Meeting, the group is pushing for a leadership review at FBN Holdings.
They have urged the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), and the Nigeria Deposit Insurance Corporation (NDIC) to step up their oversight responsibilities to prevent a potential corporate governance crisis that could jeopardize the bank’s future.
“The CBN, SEC, and NDIC must intervene to address the boardroom conflict, pursue the ongoing fraud cases to their logical conclusions, and ensure that the financial sector remains safe and credible,” the shareholders stated.
They further argued that beyond the current ₦30 billion and ₦40 billion fraud cases, there could be deeper financial irregularities that require thorough investigation to prevent further erosion of investor confidence.
With First Bank being one of Nigeria’s most prominent financial institutions, the shareholders believe that transparency from regulatory bodies is crucial in restoring public confidence
They have demanded that the regulators clarify the steps being taken to resolve the leadership crisis and prosecute those implicated in the alleged financial misconduct.
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