FirstBank of Nigeria, the nation’s oldest financial institution, has experienced a seismic organizational restructuring following a controversial send-off party for its former MD/CEO, Adesola Adeduntan. The lavish event, which reportedly cost a substantial sum, has not only drawn public scrutiny but also catalyzed significant exits, including Folake Ani-Mumuney, Global Head of Marketing and Corporate Communications, and nearly 100 senior staff members.
The fallout began when Femi Otedola, Chairman of the holding company FBN Holdings, expressed his frustration over the event, which he described as “insensitive and wasteful.” Adeduntan, who stepped down amid allegations of negligence in a N60 billion electronic fraud case, was the recipient of a send-off party deemed at odds with the bank’s current priorities.
A Transformative Mandate
Otedola, who has cultivated a reputation as a “no-nonsense activist investor,” has led FirstBank through an era of intense restructuring since taking over as chairman. His leadership has focused on eradicating what he terms “extravagance and waste of shareholders’ resources” while ensuring the bank adheres to a disciplined financial strategy.
Leadership Overhaul
The recent exits form part of a broader effort to recalibrate the bank’s leadership. Sources reveal that the restructuring is aligned with the bank’s ambitious 2025 repositioning plan, which seeks to inject fresh talent into its leadership pipeline.
In 2024 alone, FirstBank experienced several high-profile changes:
March: The appointment of five directors under Otedola’s guidance set the stage for a new era.
May: Tunde Odukale stepped down as Chairman of FirstBank Limited, succeeded by Ebenezer Olufowose.
June: Olusegun Alebiosu and Ini Ebong assumed the roles of MD and DMD, respectively, to bolster the bank’s operational strength.
October: Wale Oyedeji became the Group MD of FBN Holdings, marking another strategic leadership addition.
Strategic Focus
This year’s shakeups have solidified FBN Holdings and FirstBank as key players in the Nigerian financial ecosystem. The changes align with Otedola’s vision to enhance governance, operational efficiency, and financial stability. These efforts are underscored by FirstBank’s successful N149.5 billion rights issue, which positions the bank to meet the Central Bank’s recapitalization mandate and compete with its peers in the FUGAZ group.
Market Performance
Despite the internal turbulence, FirstBank’s share price has risen by 18.47% year-to-date, outperforming several of its competitors in 2024. The bank’s focus on recapitalization and governance has reassured investors, paving the way for sustainable growth.
Reflection on the Past, Path to the Future
The send-off party for Adeduntan may have triggered immediate consequences, but it also spotlighted deeper issues within FirstBank’s operations. Under Otedola’s transformative leadership, the institution is shedding the remnants of past mismanagement and embracing a future defined by prudence, innovation, and accountability.
As FirstBank transitions into a new era, it sets a benchmark for how legacy institutions can evolve to meet modern challenges while maintaining their foundational values.
Discover more from Ameh News
Subscribe to get the latest posts sent to your email.
