CBN queries First Bank for appointing New MD without regulatory approval

The Central Bank of Nigeria (CBN) has queried the Board of Directors, First Bank of Nigeria Limited for appointing a new Managing Director/Chief Executive Officer, removing Dr Adesola Adeduntan, without regulatory approval. 

The query is contained in a letter dated April 28, 2021, signed by the CBN Director, Banking Supervision, Haruna Mustafa, and obtained by the News Agency of Nigeria (NAN). 

The letter was addressed to the bank’s Chairman, Ibukun Awosika. But Mustafa said that the action was taken without due consultations with the regulatory authorities, especially given the systemic importance of the commercial bank. 

He noted that the tenure of Mr Adeduntan has yet to expire. 

"The CBN was not made aware of any report from the board indicting the managing director of any wrongdoing or misconduct; there appears to be no apparent justification for the precipitate removal. 

"We are particularly concerned because the action is coming at a time the CBN has provided various regulatory Forbearance and liquidity support to reposition the bank, which has enhanced its asset quality, capital adequacy and liquidity ratios amongst other prudential indicators. 

"It is also curious to observe that the sudden removal of the MD/CEO was done about eight months to the expiration of his second tenure which is due on Dec. 31, 2021," he added. 

Recall that, First Bank on Wednesday announced the appointment of Gbenga Shobo as the new Managing Director and Chief Executive Director.  

Chairman of the Board of Directors First Bank, Mrs. Ibukun Awosika said the appointment was subject to all regulatory approvals.

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