First Bank in Turmoil as Chairman Departs Amidst Capital Shortfall and Opaque Finances

First Bank of Nigeria (FBN) is facing a leadership shakeup and mounting uncertainty as Chairman Tunde Hassan-Odukale exits after serving the maximum 12-year term for non-executive directors. This departure comes amidst a string of negative developments for the bank, raising concerns about its financial health and transparency.

Capital Shortfall and Cancelled Meeting

First Bank recently cancelled a crucial meeting to discuss a potential N300 billion capital raise, sparking speculation about the bank’s ability to meet the Central Bank of Nigeria’s (CBN) new minimum capital requirements. Unlike its competitors, First Bank has yet to unveil any plan to address this shortfall, leaving investors anxious.

Leadership Turmoil and Delayed Financials

The bank’s former Managing Director, Dr. Adesola Adeduntan, also stepped down under unclear circumstances, further fueling instability. The lack of transparency surrounding his departure and the delayed release of First Bank’s 2023 financial statements are causing significant worry among shareholders.

Shareholder Concerns

With leadership changes, a cancelled capital raise meeting, and delayed financial reports, First Bank’s shareholders are expressing concern about potential mismanagement and a lack of communication. The bank’s silence is raising fears of “something happening behind the scene,” as one anonymous shareholder stated.

New Chairman Takes Over, But Questions Remain

Ebenezer Olufowose, a non-executive director, has been appointed as the new chairman. However, his appointment does little to quell anxieties surrounding the bank’s current state.

First Bank urgently needs to address these issues by releasing its financial statements, providing a clear plan for capital increase, and ensuring open communication with shareholders. Until these actions are taken, the bank’s future remains uncertain.