CBN queries First Bank over alleged illegal removal Adeduntan as MD

The apex bank,the Central Bank of Nigeria (CBN) has queried the Board of First Bank Ltd, for the removal of its CEO.
The Board of Directors of the bank  had appointed Gbenga Shobo as its Managing Director/Chief Executive Officer (CEO).
The announcement was made in a statement made by the bank’s Chairman, Ibukun Awosika.
A letter from the apex bank expressed concern that the appointment of Shobo was done without the its approval
“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 apex bank said that the tenure of Mr. Adedutan has not expired and that they were also not aware of any misconduct of the former MD .
“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.”
Furthermore, CBN said  that it had provided First Bank with “regulatory forbearance” which can be interpreted as a bailout
“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.”

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