As the crisis that has bedeviled the once highflying Nigerian lender, First Bank of Nigeria Limited and its holding company, FBN Holdings Plc widens, depositors of the bank are said to be in panic withdrawals over uncertainty.
First Bank, one of Nigeria’s oldest and largest financial institutions, has faced mounting governance challenges that have eroded investor confidence and raised concerns about its long-term stability.
The crisis has prompted calls for decisive intervention from the Central Bank of Nigeria, CBN, and the Securities and Exchange Commission, SEC. Shareholders have urged regulators to enforce compliance, resolve disputes, and ensure the bank’s stability in the interest of Nigeria’s financial system.
Findings by The Witness however, revealed that depositors and customers of the bank have continued to move out their funds as they fear the CBN may wield their hammer in the financial institution any time soon.
Though FBN Holdings Plc has issued a statement dousing the tension and assuring stakeholders that the ongoing disputes would not impact its operations, depositors of the bank have been adamant, moving their deposits in droves.
The bank, in the statement, had emphasized its commitment to corporate governance and highlighted improved financial performance and a growing market capitalization.
“This matter does not in any way impact the operations of the company, and all businesses within the group continue to provide uninterrupted services to customers. We are taking all necessary steps to protect the interests of the company and its subsidiaries,” the statement reads.
Inside sources told our correspondent that since the boardroom crisis at the bank deteriorated, billions of naira have been moved out by customers who are said to be troubled over the safety of their funds.
“The crisis has really impacted negatively on our operations. Our marketers are under pressure as customers have continued to move out their funds for fear. In just two weeks, depositors have moved out billions of naira and this has not stopped. I wish the CBN and the government would move in immediately to resolve these issues and restore calm into the system,” a top official of the bank told The Witness.
The chief accountant of a top oil firm, located in Victoria Island, Lagos, which is a customer of the bank told The Witness that the board of the company has directed that all their funds with the bank be transferred to other banks out of fear, while further payments by its clients to their account with the bank be put on hold.
“Everybody is afraid of what will become of the financial institution. My company has written an instruction to the bank requesting the transfer of our funds to another bank for now while we watch what happens next.”
The Witness reliably gathered that though the CBN has kept mum over the fisticuffs at the bank, the regulator is however disturbed and it’s reviewing the situation at the financial institution before it takes a position.
Recall the CBN recently wielded its sledgehammer on Heritage Bank Limited by withdrawing its license while depositors were left stranded. A week later, the apex bank again hit the Nigerian financial sector, sacked the board of three commercial banks and reappointed fresh teams to manage the banks over corporate governance issues.
Recall, the crisis rocking the bank escalated after a group of shareholders holding 10 per cent of the company’s shares last week requested an extraordinary general meeting, citing Section 215(1) of the Companies and Allied Matters Act (CAMA). Among the agenda items are calls for the removal of group chairman Mr. Femi Otedola and Mr. Julius B. Omodayo-Owotuga, a non-executive director.
The shareholders alleged that Otedola’s emergence as chairman was facilitated by former CBN governor, Godwin Emefiele, who reportedly supported Otedola’s acquisition of substantial shares.
They claimed that this development has since disrupted the bank’s governance structure, leading to instability and executive conflicts.
Further accusations include the dismissal of former CEO Dr. Adesola Adeduntan, the sidelining of Tunde Hassan-Odukale, and the alleged bypassing of top-performing candidates for key leadership positions.
In what seems to be a fight back, Otedola’s camp has continued to release missiles and expose on the imbroglio citing that the action of the aggrieved shareholders are being sponsored by former board members of the institution who allegedly ran the bank aground via multiple fraud scandals.
The development, The Witness gathered, led to a current board of the bank detailing a fresh petition to the Economic and Financial Crimes Commission, EFCC, to prosecute the former board members of the bank who have been found culpable.
Recall, a former relationship manager at First Bank of Nigeria, Adesuwa Ezenwa, had alleged in August 2024 that loans worth billions of naira were transferred to companies related to Oba Otudeko, then chairman of the bank and Bisi Onasanya, a former managing director of the bank, even though they were granted in the name of other firms.
The EFCC has now filed a 13-count criminal charge against Otudeko and Onasanya for the alleged crime.
The duo are to be arraigned on Monday, January 20th before Justice Chukwuejekwu Aneke of the Federal High Court, Lagos.
They will be arraigned alongside, a former member of the board of directors of Honeywell Flour Mills Plc, Soji Akintayo and a company linked to Otudeko, named Anchorage Leisure Ltd.
All four were listed as defendants in the suit filed by an EFCC prosecutor, Bilkisu Buhari-Bala on Jan. 16, 2025.
According to the EFCC, the four committed the fraud in tranches of N5.2b, N6.2b, N6.150b, N1.5b and 500 Million, between 2013 and 2014 in Lagos.
In proof of the charge against the defendants, the EFCC intends to call representatives of First Bank including Cecilia Majekodunmi, Ola Michael Aderogba, Abiodun Olatunji, Raymond Eze, Abiodun Odunbola and Adeeyo David all of whom are expected to give evidence of the fraudulent misrepresentation of the defendants and tender relevant documents.
The EFCC will also rely on the testimonies of representatives of the Central Bank of Nigeria, representatives of Stallion Nigeria Limited and representatives of V-tech Dynamics Ltd.
Also included in the EFCC’s list of witnesses are one Farida Abubakar and Adaeze Nwakoby.
According to the commission, the offences contravene Section 8(a) of Advance Fee Fraud and Other Fraud Related Offences Act 2006 and were punishable under Section 1 (3) of the same Act.
