Abdullahi becomes FBN Holdings’ new chairman following Babalola’s sudden resignation

AHMAD ABDULLAHI, a former director of banking supervision who retired last year from the Central Bank of Nigeria has been appointed a non-executive director and chairman of FBN Holdings Plc following the unexpected resignation of Remi Babalola, a one time minister state for finance.

Babalola resigned last Friday in what took industry watchers, colleagues and the CBN, who appointed him last April, by surprise. But his resignation appeared to have stemmed from developments surrounding the bank, especially to do with a contest for control by powerful shareholders with significant shares in the entity.

Osita Nwanisobi, CBN’s director of corporate communications said: “The bank had been duly notified of the resignation of Babalola, as chairman of the company against the backdrop of [a] contest by some significant shareholders for control of First Bank Holding Plc.”

The CBN described Babalola’s resignation as the chairman of the FBNH Plc as regrettable, especially given the fact that CBN’s regulatory interventions had made a positive impact and increased the attractiveness of the company to both local and foreign investors.

In a message to his colleagues on the board, via email, Babalola wrote: “My esteemed Co-Directors of FirstBank, the over 7-months journey since my appointment by the CBN to the Board of the Holdings Company has been a mix of hard work, sacrifices, battles and consensus building, all aimed at returning the institution to the path of stability and sustainable growth.

“Though the assigned mandate has been daunting, we have within the short period successfully reinstated confidence in the institution, overhauled its corporate governance and introduced openness and due process in all transactions.

“However, after deep reflection on recent developments relative to my personal values, I resigned my appointment as a Non-Executive Director and the Chairman of the Board of Directors of FBN Holdings with immediate effect.

“I thank you for your unflinching support, cooperation and valuable contributions during my short leadership. I wish you the very best as you soldier on.”

Abdullahi, an economist and sound professional, has years of experience in academia, banking supervision and financial regulation.

FBN Holdings Plc has been in the news frequently lately, especially over its share acquisition by billionaire businessman, Femi Otedola, who it is believed has spent over N40 billion picking up the company’s shares and has become the single largest individual shareholder of the institution with 7.57 percent.

Babalola’s resignation came barely 48 hours after the company confirmed to the public through the Nigerian Exchange about a further significant share purchase by Otedola. Sources say the financial holding company also informed the SEC as well as the CBN about the development.

There were various speculations at the weekend over the possible reasons for Babalola’s resignation, one of which was concern over corporate governance issues. But one analyst said as chairman, appointed by the central bank, he had capacity and the experience to deal with such matters, adding that he might have left to focus on other personal interests.

Femi Otedola recently said that his acquisition of the bank’s shares that has seen him become the largest single individual owner in the holding company is purely an investment decision, rather than an aim to become the man who calls the shots on the board.

“Being the single largest shareholder doesn’t mean I must necessarily hold a position in the bank.