Connect with us

Business

CBN, First Bank on collision course over removal of MD/CEO

Published

on

Sources in First Bank accuse CBN of meddling in its internal affairs.

CBN forex restrictions on food itemsCBN approves new cheque standard for banks

The Central Bank of Nigeria has issued the Board of First Bank Ltd, one of Nigeria’s oldest banks a query for the removal of its CEO.

On Wednesday the Board of Directors of First Bank of Nigeria Limited revealed it had appointed Gbenga Shobo as its Managing Director/Chief Executive Officer (CEO). The appointment was disclosed in a statement made by the bank’s Chairman, Ibukun Awosika.

However, in an apparent leak, a letter from the central bank to First Bank revealed a query from the former to the latter expressing concern that the appointment of Shobo was done without the approval of the apex bank.

“The attention of the Central Bank of Nigeria (CBN) has been drawn to media reports that the Board of Directors has approved the removal of the current Managing Director of the bank, Dr. Sola Adeduntan, and appointed a successor to replace him. The CBN notes with concern that the action was taken without due consultation with the regulatory authorities, especially given the systemic importance of First Bank Ltd.”

The CBN also claimed that the tenure of Mr. Adedutan was yet to expire (bank MD’s have a maximum 10 years) and that they were also not aware of any misconduct of the former MD and as such there was no justification for his removal.

“Given that the tenure of Dr. Adeduntan is yet to expire and the CBN was not made aware of any report from the Board indicting the Managing Director of any wrong-doing or misconduct, there appears to be no apparent justification for the precipitate removal.”

However, sources within the bank informed Nairametrics that First Bank has a maximum of 6 years tenure for its MDs in line with its succession plans. They also claimed the CBN is meddling in its internal affairs as the removal of the MD is in line with its succession plans and also does not exceed CBNs maximum of 10 years.

“First Bank followed its corporate governance framework in its change of leadership and appointment of new executive directors. No Managing Director in the 127 years history of FirstBank has ever attempted a tenure extension. Why now?”

Another source who did not want to be mentioned as they were not authorized to do so lamented that “Adeduntan’s term formally ends in June this year after 2 terms of 3 years each. Leaving early is in line with the bank’s succession planning. When he was appointed 6 years ago and a DMD role was created, the erstwhile FirstBank Managing Director knew the DMD would succeed him and this is what has happened. This is corporate governance at its best.”

However, the apex bank in the leaked letter also suggested that it had provided First Bank with “regulatory forbearance” which can be interpreted as a bailout subliminally indicating that it has a say in the operations of the bank.

“We are particularly concerned because the action is coming at a time the CBN has provided various regulatory forbearances 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 expiry of his second tenure which is due on December 31, 2021. The removal of a sitting MD/CEO of a systemically important bank that has been under regulatory forbearance for 5 to 6 years without prior consultation and justifiable basis has dire implications for the bank and also portends significant risks to the stability of the financial system.”

Sources within the bank also allude without proof that the involvement of the central bank in this matter may also be due to First Bank’s support of Flutterwave which may have angered CBN.

“Is this payback for FirstBank for supporting and enabling Flutterwave and other tech companies? FirstBank MD-Designate, Gbenga Shobo created a revolution by partnering with Flutterwave and other tech companies. Is this payback? The CBN Governor must be called to order. This is not a banana economy. We need to preserve the FirstBank heritage with its seamless succession planning.”

It is unclear how this matter will end but stemming from experience, we will not be surprised if this matter ends in court in a few days. The Central Bank has often controversially delved into board-related issues such as appointments and even firing of all or some Board members for what it perceives as severe infractions.

And as expected, it ended its query to the bank with a threat to the board if the decision to remove Adeduntan is not reversed.

“In light of the foregoing, you are required to explain why disciplinary action should not be taken against the Board for hastily removing the MD/CEO and failing to give prior notice to the CBN before announcing the management change in the media.”

Continue Reading

Business

Port Harcourt Refinery to Resume Operations in December, Tinubu Assures Labour Leaders

Published

on

*We”Ll Take Decision On Suspension Of Strike At NEC Meeting Today-Ajaero

President Bola Tinubu, on Wednesday night, assured the leaders of the organised labour that the Port Harcourt refinery will commence operations by December 2023.

The organised labour revealed this in a statement on Wednesday night.

The labour centers also noted that the president made a series of promises following which they agreed to return to the negotiations table.

The national presidents of the Nigeria Labour Congress, Joe Ajaero and Trade Union Congress, Festus Osifo in the statement also hailed Nigerians for supporting the nationwide protest.

Tinubu with labour leaders


“It is pertinent to inform Nigerians that the extent of the success of the protest is underlined by the request of the President of the federal republic of Nigeria; Senator Ahmed Bola Tinubu to meet with the leadership of the NLC and TUC in a closed-door session.

“The engagement was fruitful that immense mileage was obtained with regards to the issues that bogged down the work of the Presidential Committee on Subsidy removal and necessitated the protest viz; He committed to an immediate restructuring of the framework for engagement in line with the input of the Labour leaders.

“He let out a certainty that the Port Harcourt Refinery will commence production by December this year. He pledged to ensure that Agreement is reached on the Wage Award for Nigerian workers immediately.

“He promised to unveil a workable roadmap to the CNG alternative next week. On the strength of the president’s pledge and commitment, we have decided to return to a new and reinvigorated dialogue process to allow for full implementation.

“Once again, we thank Nigerians while we wait for the Government to fulfill its own part of the understanding as agreed with His Excellency; the President.”

Briefing State House correspondents at the end of the brief meeting with the President, the President of the NLC, Comrade Joe Ajaero, said they deepened their discussions with the President on palliatives for workers.

He disclosed that the President explained certain things hitherto not in his nationwide broadcast to them at the meeting.

On whether the President urged them to call off the strike, Ajaero said no one person could do that disclosing however that the National Executive Council (NEC) of the NLC would meet today (Thursday) to decide on the next line.of action.

He said, “We met with him (President Tinubu). The issues we discussed are the same issues that led to the protest today.

“He has expressed his position, made some commitments, which were taken side-by-side with what the Senate said, and we’re taking it back to the office with our colleagues to review it and release a document on our next line of action.”

Asked whether the commitments were different from the one he did during the broadcast, Ajaero, flanked by the TUC President, Comrade Festus Osifo said, “We have gone deeper into them. The broadcast has broader issues, but there are one or two things that need immediate attention.”

Further asked whether the organised labour will call off the peaceful protest, he said, “No one person can call it off. That’s why I said we’ll have to go back to the office. So that they will look at it, the Exco looks at it before they come up. And by tomorrow, the NLC will equally have their NEC meeting, to look at the bigger picture.”

Asked whether the President told them to suspend the protest, he simply said, “The President is a pro-democracy activist. So he understands protests.”

Continue Reading

Aviation

Aviation Ministry, MOFI Agree on Collaboration for National Asset Register

Published

on

Minister of Aviation Senator Hadi Sirika has said a collaboration between the Aviation Ministry and the Ministry of Finance Incorporated (MOFI) was paramount in the Civil Aviation part of the Nigerian economy.

Sirika made this statement during a courtesy call to the Ministry by the MOFI management for collaboration between the Federal Ministry of Aviation and the organisation on Tuesday in Abuja.

The Minister expressed his excitement that there was a structure for MOFI, and it has fallen into the right hand to get the mandate of the President of the Federal Republic of Nigeria delivered and effected appropriately.

A statement by Nawani Abdullahad, an
Assistant Director (Press) in the Ministry, said the Minister recalled that during the Nation’s Transition Committee period, there was an extensive discussion as to what contribution the aviation sector could make, and it was considered to add up to 5% to the GDP of Nigeria.

The Minister added that a road map was created for the Civil Aviation industry to create a robust sector that would be financially healthy and which would also make aviation the most preferred means of transportation.

Speaking earlier at the meeting, the CEO of the Ministry of Finance Incorporated (MOFI), Dr. Armstrong Takang congratulated the Minister on his recent appointment as a member of the MOFI Governing Council.

He said the appointment demonstrated Mr President’s trust in him given his vast experience in driving governance to achieve desirous outcomes, which would be valuable for MOFI in delivering significant value to its key stakeholders and its portfolio companies.
Dr Armstrong recalled that MOFI was used as a Special Purpose Vehicle across the economic sector, focused on holdingfederall government investments, which it had been using to invest in commercial entities for over 60 years.

However, he added that MOFI was not structured to deliver on the mandate that was expected of it, noting that its peers established at the same time and restructured to reflect current realities, had gone on to make major social and economic impacts in their respective countries. Many of them, he said, had become global brands for investing beyond their home countries’ borders.

He said, in line with the approval of Mr.President to create a comprehensive National Asset Register (NAR) by aggregating, profiling and managing all national assets and investments, the NAR would be harnessed to strengthen the nation’s fiscal and economic realities and the optimization of our investments and assets, noting that the development and modernization of the country’s airports was crucial for socio economic development.

The MOFI Chief Executive further expressed their strong interest in supporting the growth and expansion of Nigerian airlines, adding that MOFI would like to explore ways in which it can provide financing and investment for airlines to expand their fleets, enhance their devices and compete on the global stage.

He noted that the investment and collaboration would bring about mutual benefits for both MOFI and the Ministry of Aviation.

Continue Reading

Aviation

Concession: Preferred, Reserved Bidders Emerge for Abuja, Lagos and Kano Airports

Published

on

… as No Bid Received for Port Harcourt Airport

The Nigerian government on Wednesday announced the preferred bidders for the Nnamdi Azikiwe International Airport Abuja, the Murtala Muhammed International Airport, Lagos, and the Mallam Aminu Kano International Airport (MAKIA), Kano, as the Concession programme enters its final phase.

The minister of Aviation, Sen. Hadi Sirika unveiled the successful bidders at a press briefing in Abuja on Wednesday.

He said the Request for Proposals (RFP) phase of the Nigeria Airports Concession Programme (NACP), which came to a close on the 19 of September 2022 has seen the emergence of preferred and reserve bidders for three (3) out of four (4) Airports and Cargo Terminals as approved for concession under the programme under the supervision of the Infrastructure Concession Regulatory Commission (ICRC).

He announced that “the preferred bidder for the Nnamdi Azikiwe International Airport (NAIA), Abuja, is Corporacion America Airports Consortium. ENL Consortium has also been selected as the reserve bidder for NAIA. ”

“The preferred bidder for Murtala Mohammed International Airport (MMIA), Lagos, is TAV/NAHCO/PROJECT PLANET LIMITED(PPL) Consortium. Sifax/Changi Consortium has also been selected as the reserve bidder for MMIA” he said.

“The preferred bidder for Mallam Aminu Kano International Airport (MAKIA), Kano, is Corporacion America Airports Consortium. There are no reserve bidders for MAKIA as at the time of this announcement,” he said.

For the Port Harcourt International Airport (PHIA), Port Harcourt, Sirika said the ministry “did not receive any proposals as of the RFP deadline close and as such has not had preferred and reserve bidders attached to it.”

He said the next stage now it’s the negotiation stage adding that the organised labour has been a part of all the negotiations that has happened and will still be part of future negotiations.

He also said no Federal Airports Authority of Nigeria (FAAN) official will lose their jobs.

“The next stage of the programme is the negotiations and due diligence stage, during which the Federal Government will invite preferred bidders to enter detailed negotiations with its representatives, with a view to developing a Full Business Case (FBC) before onward transmission to ICRC for review and approval. Only after successful conclusion of the negotiation and due diligence stage will the FBC and all other approvals be presented before the Federal Executive Council for final approval by the Federal Government of Nigeria” he explained.

Continue Reading

Trending

Copyright © 2021 Sunrise Magazine. All rights reserved