Ahmad Abdullahi takes over as FBN chairman, as Remi Babalola resigns

18 Dec Ahmad Abdullahi takes over as FBN chairman, as Remi Babalola resigns

The Central Bank of Nigeria, CBN, has approved the appointment of Ahmad Abdullahi as non-executive director of First Bank Holding Plc and chairman of the company to replace Mr Remi Balalola.

Babalola resigned yesterday for reasons yet to be disclosed.

The CBN’s Director, Corporate Communications, Osita Nwanisobi, said late on Friday, that “The bank had been duly notified of the resignation of Babalola, as chairman of the company against the backdrop of contest by some significant shareholders for control of First Bank Holding Plc.”

While congratulating Abdullahi on his appointment, the CBN described Babalola’s resignation as the chairman of the company as regrettable, especially given the fact that CBN’s regulatory interventions had made a positive impact and increased the attractiveness of the company to both local and foreign investors.

He said the CBN acknowledged the measured achievements recorded by the company under Babalola’s watch, and thanked him for his service, even as the CBN wished him well in his future endeavours.

According to Nwanisobi, the regulatory measures taken by the CBN were yielding the expected results in terms of overhaul of corporate governance practices, restoration of confidence in the bank’s brand, increased transparency and due process in transactions as well as improved financial performance.

In line with its statutory mandate, the CBN spokesman said the CBN remained committed to ensuring transparent governance practices at the bank and the continued independence of the chairman and other persons holding key governance positions.

It recalled that given the systemic importance of First Bank owing to its historical significance, balance sheet size, large customer base and high level of interconnectedness with other financial service providers, the CBN in April 2021 took decisive regulatory action to address corporate governance infractions at the bank leading to the removal of the board of First Bank Ltd and FBN Holdco Plc and appointment of a new board.

The statement said, “Abdullahi is an economist and thorough-bred professional with long years of experience in the academia, banking supervision and financial regulation, retiring as director of Banking Supervision, CBN in February 2020. An expert in bank crisis resolution, he also serves on the boards of the Africa Finance Corporation, FMDQ, NDIC & AMCON.”

Last week, Otedola acquired an additional 2.5 per cent in FBN Holdings Plc., becoming the single largest shareholder in the company.

Based on this, the equity stake of Otedola is now 7.57 per cent of the issued shares capital of FBNH.

In a corporate filing on the Nigerian Exchange Limited (NGX) on Wednesday, FBN Holdings confirmed the deals.

Sources said FBNH had on Wednesday informed regulators about Otedola’s new position as the single largest shareholder.

Despite his shareholding status, Otedola had said the move was purely an investment decision and not to become the chairman or hold any key position in the HoldCo.