First Bank records key changes under Otedola… here’s all to know
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In a dramatic turn of events in Nigeria’s financial sector, First Bank of Nigeria (FBN) has found itself at the center of significant changes spearheaded by billionaire businessman Femi Otedola.
His leadership style has confirmed the bold changes many anticipated. His recent call for the resignation of the bank’s marketing chief over alleged “lavish party” spending has ignited a spirited debate about leadership priorities, corporate culture, and the implications of a no-nonsense approach to accountability.
This recent developments have sparked curiosity among stakeholders and analysts, offering a glimpse into the unfolding transformation of one of the nation’s oldest and most prestigious financial institutions.
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Here’s what you need to know
According to TheCable, Otedola was seriously irked” when he learned that a whopping sum was spent on a send-off party for Adesola Adeduntan, the former MD of the bank who was reportedly forced to resign over alleged negligence in a N60 billion electronic fraud.
The send-off party was held at the Harbour Point, Victoria Island, Lagos, on November 2, in honour of Adeduntan, who was GMD and CEO for nine years until April 2024.
An inside reports that Otedola said it was “insensitive and wasteful” to spend such sum when the bank is focused on recapitalization and trying to cut down excess from past administration.
Nairametrics notes that FBN Holdings reported operating expenses of N421.3 billion in the first nine months of 2024, a sharp increase from N212.1 billion recorded in the same period last year. Advertising and promotional expenses also surged to N44.5 billion, compared to N20 billion a year earlier.
Meanwhile, ThisDay reports that Folake Ani Munemey resigns sfter 15 remarkable years at First Bank as Global Head of Marketing and Corporate Communications.
However it has not be proven that her resignation was as a result of the “lavish party” as Firstbank Nigeria has not issued an official statement on the issue.
TheCable reports that Otedola was absent in the party but many other dignitaries attended.
They also projected that Otedola as a “no-nonsense activist investor”, who is planning to take more “drastic” decisions and actions to keep First Bank on the track of impeccable banking “devoid of extravagance and waste of shareholders’ resources.”
Otedola’s association with First Bank Nigeria
Femi Otedola’s association with First Bank first made headlines in 2021 when he quietly acquired a significant stake, becoming the single largest shareholder.
His involvement in the bank came at a critical time when the bank was dealing with corporate governance challenges and regulatory scrutiny. Since then, Otedola has steadily consolidated his influence, leveraging his stake to advocate for reforms.
Today he’s the highest holding shareholder in First Bank Nigeria which also makes him the chairman of the corporation.
