Central Bank of Nigeria (CBN) has ordered the immediate sack of all directors of FBN Limited and FBN Holdings Plc.
CBN also reinstated Sola Adeduntan as the managing director and chief executive officer of First Bank of Nigeria Limited.
Godwin Emefiele, governor of the CBN, announced this during a press briefing on Thursday.
Emefiele announced the constitution of an interim board to clean up and stabilise the tier-1 lender.
CBN had queried the board of First Bank of Nigeria Limited over the removal of Sola Adeduntan, without due consultation with regulatory authorities.
A letter signed by CBN’s director of banking supervision, Haruna Mustafa, read:
“The CBN was not made aware of any report from the board indicting the managing director of any wrong-doing or misconduct; there appears to be no apparent justification for the precipitate removal.
“We are particularly concerned because the action is coming at a time the CBN has provided various regulatory forbearances and liquidity support to reposition the bank, which has enhanced its asset quality, capital adequacy and liquidity ratios amongst other prudential indicators.
“It is also curious to observe that the sudden removal of the MD/CEO was done about eight months to the expiry of his second tenure, which is due on December 31, 2021”