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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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Bandits kill one, abduct 14 in Zamfara communities

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Bandits kill one, abduct 14 in Zamfara communities

By: Zagazola Makama

Armed bandits have killed one person, injured three others, and abducted at least 14 villagers in separate attacks on Jangebe and Keta communities of Talata Mafara and Tsafe Local Government Areas of Zamfara State.

Zagazola learnt that the first attack occurred at about 4 a.m. on Sunday, when a group of heavily armed bandits invaded Fakon Idi area in Jangebe District of Talata Mafara LGA.

“The bandits shot dead one person and injured three others before abducting four individuals to an unknown destination,” the sources stated.

“Upon receipt of the distress call, troops of Operation Fansa Yamma, police and local vigilantes mobilised to the scene and engaged the bandits in a fierce gun battle, forcing them to retreat into the nearby forest,” said the sources.

Sources said the corpse of the deceased had been handed over to relatives for burial, while the injured victims were receiving treatment at the Jangebe Primary Health Care Centre.

In a separate development, about ten villagers from Keta town were abducted while being forced to work on a bandits’ farm located between Keta and Kwaren Ganuwa villages in Tsafe LGA.

Sources revealed that at about 12:05 p.m. on Sunday, another notorious bandits’ kingpin, identified as Babangida Bature Yola, stormed the farm with his gang and abducted the villagers to an undisclosed location.

Authorities said efforts were ongoing to rescue all abducted victims and restore normalcy to the affected areas.

Bandits kill one, abduct 14 in Zamfara communities

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Nigeria Requests Evacuation of Jailed Pastor Egbaji from Benin Republic Over Deteriorating Health

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Nigeria Requests Evacuation of Jailed Pastor Egbaji from Benin Republic Over Deteriorating Health

By: Michael Mike

Nigeria has expressed concern over the failing health of one of its national, Pastor Benjamin Egbaji, currently facing trial in neighbouring, Republic of Benin.

Egbaji, a businessman and cleric from Cross River State, has for about two years been detained in a hospital in Cotonou, the Beninese capital under dehumanising conditions while his health is said to deteriorating.

The Ministry of Foreign Affairs, in a statement on Tuesday called on the Benin authorities to release the Nigerian national so that he could have better medical care and also serve out his sentence in Nigeria.

Minister of State for Foreign Affairs, Ambassador Bianca Odumegwu-Ojukwu, said discussions with the Nigerian Mission in Cotonou, indicated that Pastor Egbaji’s health is steadily worsening and he needs urgent and proper medical attention.

She stated that the Ministry had made spirited effort to rescue the troubled Egbaji in line with the citizen diplomacy thrust of the Renewed Hope Agenda of the President Bola Tinubu-led administration.

The minister who had early August visited Egbaji in the Cotonou hospital alongside the country’s Minister of Foreign Affairs, Olushegun Adjadi Bakari, disclosed that the Ministry had requested the transfer of the Nigerian national to receive the deserved medical care and serve out his custodial term in Nigeria.

She explained that Nigeria was worried over the pace of Beninese authorities is taking to address the situation and acceding to Nigeria’s request.

She asked the Beninese authorities to consent to Nigeria’s request and accelerate the release of the detained Nigerian pastor in regards to the longstanding cordial relations existing between the two countries, founded on shared cultural heritage, bonds of trust, mutual respect, and a spirit of brotherhood,

Odumegwu-Ojukwu also disclosed that Nigeria’s position was further highlighted in a recent letter to the Republic of Benin Government.

She said: “It is against this backdrop of solidarity and mutual goodwill that I seek Your Excellency’s kind consideration regarding the plight of a Nigerian national, Pastor Benjamin Egbaji, who has been serving a custodial sentence in Cotonou since October 2023 for a jail term of 10 years. As Your Excellency may be aware, Pastor Egbaji has been in Benin Republic for over three decades, contributing meaningfully as an entrepreneur, pastor, and community leader.

“Regrettably, his health has deteriorated severely while in detention. Two independent medical experts appointed by the court recently recommended that he be transferred abroad for urgent medical care, as local interventions have proved ineffective.

“In the spirit of our longstanding friendship and in recognition of the humanitarian imperative, not being unmindful of the grievous nature of the offence he is charged with, we kindly request that Pastor Egbaji be repatriated to Nigeria to serve out the remainder of his sentence in a Nigerian Correctional Centre,” she stated.

She however reiterated that this gesture would demonstrate in practical terms the enduring spirit of fraternity and cooperation that bind Nigeria and the Republic of Benin.

Nigeria Requests Evacuation of Jailed Pastor Egbaji from Benin Republic Over Deteriorating Health

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President Tinubu Orders Reduction Of 2026 Hajj Fare

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President Tinubu Orders Reduction Of 2026 Hajj Fare

*As VP Shettima gives NAHCON 2 days to effect president’s directive

By: Our Reporter

Following the directive of President Bola Ahmed Tinubu for an immediate review of the 2026 Hajj fares, Vice President Kashim Shettima has directed the National Hajj Commission of Nigeria (NAHCON) to come up with new fares for the exercise within two days.

This, the Vice President said, had become necessary considering continued appreciation of the naira against the dollar – a primary determinant for the pilgrimage fares.

VP Shettima who handed down the President’s directive on Monday during a meeting with management and board members of NAHCON at the Presidential Villa, called for synergy among national and state officials, including state Governors, in streamlining and adopting a new set of fares for the exercise.

He aslo urged prompt action by all stakeholders to ensure quick payments and timely remittances to the Central Bank of Nigeria (CBN) to facilitate a hitch-free exercise.

Fielding questions from journalists shortly after the meeting with the VP, Deputy Chief of Staff to the President, Senator Ibrahim Hadeija, said the meeting convened at the instance of the Vice President was to finalise preparations for the 2026 Hajj operations, particularly the determination of fares for the 2026 exercise.

He explained that the goal is to reduce the amount payable by pilgrims for the exercise, given the current trend in the economy occasioned by ongoing reforms being undertaken by the Tinubu administration.

He said, “Rates have continued to improve steadily, with the naira appreciating based on the effects of the economic reforms of the government. The Vice President felt that if pilgrims paid ₦8.5 million to ₦8.6 million based on negative exchange rate last year, and the exchange rate has improved, then the changes should reflect in the current fares, and the benefits should also be passed to the prospective pilgrims.

“So, the commissions and all officers of the Hajj commission are here and they have been told to immediately go to look at more realistic exchange rates. If we achieve what we envisage, then we will have a very significant reduction in the Hajj.”

On his part, Secretary of the National Hajj commission (NAHCON), Dr Mustapha Mohammad, said the President’s directive would increase the number of intending pilgrims for this year’s exercise.

“It is a welcome development and the lower the Hajj fare, the better for Muslim faithful intending to perform Hajj. So, as directed by the Vice President, we will work tirelessly between today and tomorrow to see that we reduce it to the barest minimum and affordable rate for every Muslim faithful to have the opportunity to perform this very important pillar of Islam.”

Also, the Chairman, Kebbi State Muslim Pilgrims Welfare Board and Deputy Chairman, Forum of the Chief Executive of 36 and the FCT Chairmen of pilgrims Board, Alhaji Faruk Aliyu Yaro, expressed delight with the presidential directive.

“We are very happy because the President and the Vice President have already intervened. We thank God for what they have said, which is expected to bring down the cost of Hajj fare. So, we are happy,” he said

President Tinubu Orders Reduction Of 2026 Hajj Fare

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