The Central Bank of Nigeria has faulted the removal of the erstwhile managing director of First Bank of Nigeria Limited, Adesola Kazeem Adeduntan and the hurried appointment of his replacement in the person of Gbenga Shobo.
Earlier today, the 127 year old bank had announced Shobo as its managing director/chief executive officer effective from April 28, to take over form Adeduntan who was said to be retiring in accordance with the bank’s term limits for chief executives, having headed it since 2016.
Shobo until his appointment was the bank’s deputy managing director and held high level positions in the bank including group head (national corporates), executive vice president (retail south) and executive director (Lagos & West).
However, faulting the manner Adeduntan was removed, the Apex bank said First bank did not follow due process in effecting a change of baton, by consulting regulatory authorities, adding that the removal of Adeduntan was done about eight months before his tenure was to expire in December 31, 2021.
The Apex Bank considered the removal of the sitting managing director of the bank which has been under regulatory forbearance for about six years without a justifiable reason, as having dire consequences for the bank and also portending significant risks to the stability of Nigeria’s financial system.
It therefore urged the bank to explain why disciplinary action should not be meted out on the board for the hasty removal of Adeduntan without recourse to it and rushing to make a media announcement about a change of guard.
Not only did the CBN warn First Bank to desist from making any further media announcement or comments on the matter, it gave the bank until the end of work on Thursday, April 29th to respond to the issue via the Director of Banking Supervision.