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Corporate Affairs Commission places First Bank record on caveat as board crisis worsens

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Corporate Affairs Commission places First Bank record on caveat as board crisis worsens

. As ex-AMCON chair accuses bank of promoting illegality and disobedience to court orders

By: Michael Mike

The Corporate Affairs Commission, CAC, has placed the record of First Bank of Nigeria (FBN) Holdings on caveat pending the resolution of the current crisis rocking the board of the bank as a result of multiple court cases filed by aggrieved directors.
The current crisis rocking the bank stems from protests by shareholders who are kicking against the bank’s internal governance and shareholding structure, as a result of which some of them have taken their grievances to the court. One of such is the case of Olusegun Samuel Onagoruwa v. FBN Holdings Plc in Suit No. FHC/L/CP/1271/2022), which is challenging the capacity of the Board of Directors of FBN to appoint new persons to fill vacant slots.
Onagoruwa in his suit is seeking “an order setting aside, nullifying, annulling and/or quashing the appointments and approvals of Mr. Olusola Adeeyo, Mr. Viswanathan Shankar, Mrs. Remilekun Adetola, Mr. Anil Dua and Mrs. Fatima Ibrahim as Non-Executive Directors of First Bank of Nigeria Limited made on the 20th day of March, 2024, by FBN Holdings Plc during the pendency of this action and in defiance of the subsisting order of this Honourable Court made on the 15th day of July, 2022.”
The motion also seeks an order restraining the above-named non-executive directors from acting or taking any steps as non-executive directors of the bank. The current court case follows similar four other cases pending at the Federal High Court in Lagos and Abuja challenging the internal governance of FBN Limited, in addition to existing court injunctions restraining the bank from holding the last two Annual General Meetings which the bank went ahead to hold.
In a new twist to the crisis, the Corporate Affairs Commission in a letter titled
“RE: NOTIFICATION OF PENDENCY OF SUIT NO. FHC/L/CP/1575/23 AGAINST FBN HOLDINGS PLC, AND SUBSISTING INTERIM ORDERS OF THE FEDERAL HIGH COURT MADE ON THE 9TH DAY OF AUGUST 2023 RESTRAINING FBN HOLDINGS PLC FROM HOLDING OR PROCEEDING WITH ITS ANNUAL GENERAL MEETING PURPORTEDLY HELD ON THE 13TH DAY OF AUGUST 2023”, weighed in on litigations threatening to tear the old generation bank apart.
Signed on behalf of the Registrar General of CAC by Chidimma Maureen Nwite, the Commission in a letter to lawyers to some of the parties in court against FBN Holdings said
“This is to inform you that the record of FBN Holdings PLC RC: 916455 has been placed on caveat pending the determination of Suit No. FHC/L/CS/1575/2023.
Please be guided accordingly.”
Speaking on the multiple crises rocking the foundation of First Bank, a former Chairman of Asset Management Corporation of Nigeria, AMCON and Senior Advocate of Nigeria, Dr. Muiz Banire accused the first generation financial institution of promoting illegality and flagrant disobedience of court orders, a development shareholders fear poses major threat to the bid by the bank to strengthen its capital base in line with the recent directive of the Central Bank of Nigeria to all banks operating in the country to recapitalize.
Banire who is involved in one of the court cases said “the Bank seems to now have a reputation of defying court orders. What I just read is similar to the case Iam handling also. The Bank appears to be building a reputation of lawlessness and by the time it boomerangs, the bank and by extension the shareholders will bear the brunt. I am sure the plaintiffs will not allow them to get away with the illegality. The case of the bank is becoming a bubble.”
He further said “I also believe the CBN is aiding and abetting the Board of Directors the apex bank imposed. Everything the Board is doing is beyond their mandate. The Apex Bank needs to dissolve the Board and allow the shareholders to choose their Directors. It is one illegality after another.”
According to one of the workers union leaders in the bank, “as the tenure of the imposed directors is expiring, the same illegitimate Management of FBN, whose legitimacy is being challenged, has gone further, during the pendency of the cases challenging their competence to lead the bank, to arbitrarily appoint further five independent directors. Where they derived the power from remains a mystery.
“Mismanagement and manipulation of shares are also being alleged in some of the cases pending against the bank while the legality of the AGMs and the imposed board of directors remain a challenge.” The union leader expressed the fear that the spate of litigations and board squabbles currently rocking the bank may bring a quick collapse of the over 100-year- old bank.
Also speaking on the development, a shareholder, Mr. Olalekan Babalola, said “it is imperative for the authorities to find a solution to this lingering crisis as Nigeria cannot afford another major bank’s collapse at this critical time when President Bola Tinubu is working hard to revamp the nation’s crumbling economy. This is because the current crisis will definitely impede the bank from getting the new Central Bank’s capitilisation threshold.”
He called for urgent resolution of all court cases in the overall interest of depositors, shareholders and other stakeholders of the bank before further damage is done to the oldest Nigerian bank.

Corporate Affairs Commission places First Bank record on caveat as board crisis worsens

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Zulum Pledges Reforms for 2025 Hajj Operations

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Zulum Pledges Reforms for 2025 Hajj Operations

By: Our Reporter
 
Borno State Governor, Professor Babagana Umara Zulum, has reaffirmed his commitment to enhancing the annual Hajj pilgrimage to the Holy Land for better performance. 
 
The Governor made the pledge during the presentation of the 2024 Hajj report by the Amirul Hajj team, led by the Chairman of the Committee and Senator representing Borno Central, Senator Kaka Shehu Lawan, at the Government House on Monday.

Zulum described the 2024 Hajj as one of the most successful in recent years. “I want to assure you that during my tenure, “we have not seen such a degree of success in recent years. I was impressed by the way and manner our pilgrims were airlifted from Maiduguri to Madina and Jidda to Maiduguri,” Zulum stated.
 
He expressed particular satisfaction with the smooth airlift operations, the quality of services provided, the dedication of the Amirul Hajj team, and the conduct of the pilgrims.”
 
“I will continue to sanitise the system for greater productivity,” Zulum stated.
 
The governor also assured the public that he would review the report thoroughly and work towards implementing the recommendations. “Within the next few hours, I will go through the report clause by clause to ensure we implement the valuable suggestions made,” he promised.
 
Commending the committee for introducing innovative solutions, Governor Zulum highlighted the use of online media to inform pilgrims about their flight schedules and the publication of pilgrim names to ensure smooth operations. “The previous practice of calling names throughout the night, which was inefficient, has been eliminated,” he noted.
 
The Governor declared that, moving forward, the Borno State government will no longer cover the cost of excess luggage for defaulting pilgrims. “We have done it this year, but we will not do it next year. If anyone reports to the airport with excess luggage, they will bear the cost themselves,” Zulum stated. 
 
He directed the Executive Secretary of the Pilgrims Board to inform all intending pilgrims for 2025 of this new policy.
 
Additionally, Governor Zulum called for the deployment of technology and the engagement of local government Hajj fare collectors to identify and eliminate individuals posing as pilgrims in the Holy Land.
 
Chairman 2024 Amirul Hajj team, Senator Kaka Shehu Lawan, announced that 1,803 pilgrims performed the 2024 Hajj, five pilgrims hospitalised in the Holy Land with no death recorded.
 
According to him, Governor Zulum has rendered enormous support to the pilgrims in areas of securing befitting accommodation in Mecca, covering the differential for Basic Travel Allowances (BTA) to the tune of 260 million naira, and payment of sacrificial animals amounting to 290 million naira.
 
Others include payment of 65 million Naira to the National Hajj Commission (NAHCON) as medical support and 25 million for excess luggage. 
 
“His Excellency has extended hands of fellowship to the entire 1,815 pilgrims, the Amirul Hajj team, and the National Hajj Commission by extension. Some of the support rendered by Governor Zulum to the pilgrims while in the Holy Land includes the release of 380 million naira to secure a befitting accommodation in Mecca, covering BTA differentials, and payment of Hadya for all the pilgrims, among other things,” Lawan said.
 
Senator Kaka Shehu identified excess luggage as one of the challenges faced during the 2024 Hajj operations and emphasised that the success of this year’s pilgrimage was largely due to the unwavering support provided by Governor Babagana Zulum.

Zulum Pledges Reforms for 2025 Hajj Operations

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Gov. Buni Signs 2025 Budget into Law

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Gov. Buni Signs 2025 Budget into Law

…Assures Transparecy and Accountability in Govt. Business

By: Mamman Mohammed

Yobe state governor, Hon. Mai Mala Buni CON said the year 2025 would record timely completion of all ongoing and new projects in fulfilment of his campaign promises to the people of the state.

The Governor stated this today while signing the 2025 budget into law, saying, “this administration is committed to judicious use and investment of our resources into people oriented programmes and projects, especially, education, Healthcare delivery, agriculture, Infrastructural development, wealth Creation, and empowerment to stimulate economic growth.

“We have identified and mapped out some rich agricultural, livestock and other natural potentials for international investment to generate employment opportunities and wealth Creation. We have commenced discussions with reputable local and international organizations to harness these potentials.

“Let me seize this opportunity to draw the attention of all the supervising engineers attached to government projects. Your attachment to these projects is to protect government interests. You must ensure that every project is executed in strict compliance to specifications and other contractual agreements. I will support you, and stand with you to execute your duties effectively and efficiently.

“However, if you fail in your responsibilities, Government would not hesitate to engage external supervising engineers to ensure quality execution of our projects for the government to get value for its money.

“The Project Monitoring Committee under the leadership of Engr. Zaji Bunu is hereby advised to intensify supervision and monitoring of all projects so that the projects would be executed on schedule and in strict compliance with the contractual agreement to add value to the lives of our people” he said.

Governor Buni charged the Bureau on Public Procurement to always undertake “clinical diagnosis of contractual biddings and to patronise only competent contractors with the capacity, technical know- how and other required prerequisites”.

He assured that the State government would strive to sustain accountability and transparency in governance which earned the state the award of best performing state in transparency and accountability in Nigeria from the World Bank assisted State Fiscal Transparency Accountability and Sustainability (SIFTAS).

“I am optimistic that the new leaderships of the State Fiscal Responsibility Commission, and the Board of Internal Revenue, would both work towards enhancing accountability and prudence in revenue generation and government expenditure to promote good governance and efficient service delivery to the people” he said.

The governor charged the new Chairman Board of Internal Revenue Alhaji Suleiman Bakura to work towards improving revenue generation, block leakages and ensure remittance of all revenues collected into government coffers.

Buni also charged the new Chairman of the State Universal Basic Education Board (SUBEB) Alhaji Babayo Umar to key into the government efforts to advance basic education through ensuring qualitative teaching and learning, provision of instructional materials and conducive environment.

“You should ensure effective monitoring and supervision in the schools, and the execution of all projects awarded by the board.

The Governor also launched distribution of N50 Million cash grant and start-up kits to 500 beneficiaries trained by the Yobe State Emergency Management Agency (SEMA) in collaboration with the United Nations Development Programme (UNDP), in production of soaps, detergents, charcoal, Shoes and disinfectants.

The beneficiaries received a cash grant of N100,000 each and a start-up kit to launch their businesses for a sustainable income generation, urging them to make good use of the opportunity for a brighter future.

Gov. Buni Signs 2025 Budget into Law

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Senator Kaka Shehu Gives Educational Materials to Gov Zulum

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Senator Kaka Shehu Gives Educational Materials to Gov Zulum

By: Our Reporter

Senator Kaka Shehu Lawan SAN recently presented 20,000 exercise books, whiteboards, markers, and mathematical sets to the Borno State Government, as part of his ongoing support for the state’s educational development.

This gesture complements the significant investments made by Governor Prof. Babagana Umara Zulum in the education sector, especially following the devastating flood disaster of September 10th, which caused widespread destruction of homes and educational infrastructure.

In a brief ceremony at the Government House in Maiduguri, the items were handed over to Governor Zulum in the presence of key government officials and the press. Governor Zulum expressed his gratitude for Senator Lawan’s contribution, highlighting that this gesture is part of a broader effort that includes empowerment and capacity-building initiatives across various sectors.

He assured that the donated materials would be distributed to schools to support the education of pupils in the state.

This donation underscores the collaborative effort between the state government and key stakeholders to rebuild and improve the education sector, which has received global recognition for its transformative initiatives under Governor Zulum’s leadership.

Senator Kaka Shehu Gives Educational Materials to Gov Zulum

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