Mary Onyia
The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, on Tuesday said that the authorities were doing all they can to ensure that First Bank gets back on its foot again, given the bank’s strategic standing to the survival of the banking industry. He explained that First bank,’ Nigeria’s oldest bank was too big to fail.’
The CBN governor, who spoke at the end of the apex bank’s Monetary Policy Committee Meeting, wadded on the reports over the tussle for the control of the bank between two major shareholders in the bank, adding that no individual can own a bank.
Emefiele stressed that the apex bank was very much interested in happenings in First bank adding: “If anything happens to First Bank, it means something has happened to the Nigerian banking system,” and that the CBN will work with the Securities and Exchange Commission, SEC, to ensure that the “right thing” with regards to the top shareholding in the bank, is done.
“That is why we are taking advice on how to get the bank afoot seriously.”
Recently there have been reports of battle over who gets the controlling shares in the bank between Taiwo Hassan-Odukale and billionaire Femi Otedola.
Mr Hassan-Odukale had come to lay claim to a 5.36 per cent interest in the group in what the FBN Holdings hierarchy called “cumulative equity stake” through direct and indirect shareholding days after Mr Otedola openly declared his holding of 5.07 per cent. The move was queried by the Nigerian Stock Exchange.
Mr Otedola had quietly been amassing shares in the bank, and his move to be declared the biggest individual shareholder in First Bank Holding Company has met with opposition from the bank’s top hierarchy.
Mr Emefiele said the apex bank’s regulatory intervention brought First Bank to its profitable ways.
“Six years ago, like I said, because of an aggressive buildup of non- performing loans, the share price of First Bank was about N2. We took it up. Then, everybody was running away from the shares of First Bank.
“We have cleaned the balance sheet now, people are seeing that the money making machine, First Bank, is back on its feet. They are in the race for profitability. They are now competing for the shares of First Bank. Why should I quarrel about that? “I am happy to see that they are competing for the shares. Of course, we all know that First Bank is so large that no single person can own it. In running the banks, they should see themselves as representing others.”
“Naturally, returns are sent to CBN about individual shareholders. And of course, if our position is not in tandem with that of SEC, we will talk to SEC about it.”
Concerning the running and operations of the bank, the CBN governor reassured that the apex bank will make it a priority to ensure that the right things are done.