The Central Bank of Nigeria (CBN) governor, Godwin Emefiele, has said that the apex monetary authority will ensure that the right things are done regarding the misgivings about the shareholding structure of the First Bank of Nigeria (FBN).
The governor made the disclosure while briefing journalists on the decisions taken by the Monetary Policy Committee (MPC) of the apex bank at the end of its two-day meeting ended Tuesday in Abuja.
While noting that the Securities and Exchange Commission (SEC) is statutorily responsible for issues relating to shareholding in listed entities on the Nigerian Exchange Group Limited (NXG), the CBN governor pointed out, however, that “as it affected the running and operations of the bank, we (CBN) will take preeminence in ensuring that the right things are done.”
According to him, First Bank of Nigeria is very relevant to the Nigerian banking sector being the oldest bank in the country established in 1894.
Emefiele expressed happiness that investors are scrambling to acquire thebank’s shares.
He said: “First Bank remains the oldest bank in Nigeria. It is the most aggressively domestically important bank in Nigeria.
“If anything happens to First Bank, it means something has happened to the Nigerian banking system. That is why we are taking our guidance about how to get the bank afoot seriously.
“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 on 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.
“Naturally, returns are sent to CBN about individual shareholder. And of course, if our position is not in tandem with that of SEC, we will talk to SEC about it.
“So far, I think we should take the position of SEC as the regulator of the capital market because regulating share price and ownership is the sole responsibility of SEC. We would not want to override SEC on these issues but we will continue to work with them. We have a very good relationship with them”, the CBN governor stressed.
Despite the ownership tussle between Femi Otedola and Tunde Hassan-Odukale, which broke out in October this year, the SEC has yet to take a position or make any official pronouncement on the feud as the investment market regulator.
It would be recalled that Otedola, one of Nigeria’s leading investors and business moguls, had acquired 5.07% stake in the bank, leading to media speculations that he had become the single largest shareholder in the bank and is therefore positioned to take over as chairman of FBN Holdings Plc, the holding company of the FBN.
But then, a document surfaced on social media which indicated that Tunde Hassan-Odukale, another shareholder, had acquired 5.36% of the equity broken into two parts: 4.16% and 1.20%. Before then, his stake was estimated at 3%.
While the Nigerian Exchange Limited (NGX) had last month queried FBN Holdings for classifying the shareholdings of Hassan-Odukale and related parties into two, the National Pension Commission (PenCom) also later clarified that funds invested in First Bank Holdings Ltd (FBNH) by Leadway Pensure Ltd belong to retirement savings account (RSA) holders.
