Prominent Nigerian billionaire and investor, Femi Otedola, is at the center of a shareholder dispute at FBN Holdings, following reports of a formal request for an Extraordinary General Meeting (EGM) to address concerns about his leadership.
In a statement obtained by Richlist Nigeria, FBN Holdings has assured stakeholders that it is taking necessary steps to safeguard the interests of the company and its subsidiaries. The company emphasized that the ongoing shareholder agitation does not affect its operations, reaffirming its commitment to uninterrupted service delivery across all businesses within the Group.
Shareholder Concerns Over Otedola’s Influence
Several shareholders have voiced dissatisfaction with Otedola’s leadership style, alleging that his significant acquisition of shares—reportedly facilitated by the former Central Bank of Nigeria (CBN) Governor, Godwin Emefiele—has disrupted the bank’s governance structure.
According to insiders, Otedola’s takeover of the bank involved strategic moves, including leveraging his position to influence board appointments and operations. Shareholders claim that this has raised concerns about corporate governance and accountability within the institution.
Key grievances include:
•Allegations of bypassing security clearances with agencies such as the Department of State Security (DSS) and the Economic and Financial Crimes Commission (EFCC).
•The removal of key executives like Dr. Adesola Adeduntan and Tunde Hassan-Odukale, as well as the sidelining of Tosin Adewuyi, who was initially the top candidate for the CEO position.
•Concerns over the appointment of personal associates, such as Julius B. Omodayo-Owotuga, to significant roles within the Group.
Shareholders fear that with the ongoing private placement of N360 billion shares, Otedola could gain unchecked control of the bank, potentially undermining the principles of checks, balances, and corporate governance.
FBN Holdings Responds
Despite the allegations, FBN Holdings maintains that the company is committed to high standards of corporate governance. It stated, “The Registrar and Lead Issuing House are collating the returns from all receiving agents in respect of the Company’s Rights Issue which closed on December 30, 2024.”
The company also highlighted its improved financial performance, increased market capitalization, and readiness to meet regulatory minimum capital requirements well ahead of deadlines.
What This Means for Otedola’s Legacy
As one of Nigeria’s wealthiest businessmen, Femi Otedola’s influence extends beyond the banking sector, with interests spanning energy, real estate, and investments. However, this latest controversy could pose a challenge to his legacy as a transformative leader in Nigeria’s corporate space.
The outcome of the EGM request and subsequent developments will likely shape the future of FBN Holdings and define Otedola’s standing within the financial industry.
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