A new wave of disagreements is currently causing turmoil within the board of First Bank of Nigeria, which shareholders fear could jeopardize the bank’s efforts to strengthen its capital base in compliance with the Central Bank of Nigeria‘s directive for all banks to recapitalize.
The ongoing crisis at the bank is fueled by protests from shareholders who are unhappy with the bank’s internal governance and shareholding structure, leading some to take legal action.
One such case is Olusegun Samuel Onagoruwa v. FBN Holdings Plc, challenging the Board of Directors’ authority to appoint new members.
The lawsuit seeks to invalidate recent appointments and restrain the appointed non-executive directors from acting.
This court case is one of several challenging the bank’s governance, with existing injunctions preventing the bank from holding Annual General Meetings.
Concerns about mismanagement and manipulation of shares have also been raised, heightening fears of the bank’s potential collapse.
A union leader within the bank highlighted the risk of prolonged litigation and board disputes leading to the bank’s downfall, while a shareholder emphasized the need for swift resolution to prevent further harm to depositors, shareholders, and stakeholders.
Urgent action is urged to address the crisis and ensure compliance with regulatory requirements to safeguard the future of Nigeria’s oldest bank.
