Real reasons Adeduntan resigned as First Bank CEO

The former Managing Director and CEO of First Bank, Dr. Adesola Adeduntan, tendered his resignation amidst speculations of directives from the Central Bank of Nigeria (CBN).

The news of his departure broke while Adeduntan was attending the World Bank/IMF Spring Meetings in Washington DC.

Also read: FirstBank allegedly forges court document to freeze customer account

Adeduntan’s resignation, effective from April 20, came eight months before the expiration of his third term of three years, a tenure extension granted by former CBN governor Godwin Emefiele.

Despite being eligible for employment until December 31, 2024, Adeduntan expressed his decision to retire to pursue other interests.

In a statement addressing his retirement, Adeduntan remarked, “During this period, the Bank and its subsidiaries have undergone significant changes and broken new grounds. We have repositioned the institution as an enviable financial giant in Africa.”

He extended his gratitude to the board of directors of FirstBank and FBN Holdings Plc for their unwavering support during his tenure.

The circumstances surrounding Adeduntan’s sudden resignation suggest a complex interplay of factors.

Sources close to the matter reveal unresolved issues flagged by the regulator years ago, the mismanagement of relationships, and underlying ego clashes.

Notably, there was speculation that the CBN initially targeted the entire board of the bank, but restrained action upon realizing that the current board was appointed by the apex bank itself.

Additionally, FBN Holdings Plc scrapped its Extraordinary General Meeting (EGM) slated for April 30th, 2024, aimed at securing shareholders’ approval for the raising of N300 billion capital.

Before his resignation, there were expectations of Adeduntan assuming the position of managing director at the HoldCo level.

However, regulatory approval for this move remained uncertain, possibly due to a mandated two-year “cooling off period” between directorship tenures in Nigerian banks.

Adeduntan’s departure comes amidst a history of turbulence within First Bank’s leadership.

In April 2021, former directors voted for his retirement as his second term approached its end, only for him to regain his position after the CBN Governor sacked the board.

Adeduntan’s resignation marks the end of a nine-year tenure and also highlights the intricacies of corporate governance and regulatory oversight in Nigeria’s banking sector.

Rtn. Victor Ojelabi

Ojelabi, the publisher of Freelanews, is an award winning and professionally trained mass communicator, who writes ruthlessly about pop culture, religion, politics and entertainment.