The Central Bank of Nigeria (CBN) has on Thursday dissolved the management board of First Bank Nigeria PLC, reinstating the sacked Managing Director Adesola Adeduntan.

CBN Governor Godwin Emefiele announced the sacking of the entire board members and the reappointment of Mr Adeduntan as the CEO in a televised press briefing Thursday evening.

The board had in a statement by its chairman Ibukun Awosika announced the retirement of Mr Adeduntan from office while announcing Gbenga Shobo as his replacement.

The apex bank then promptly queried the board of the first generation commercial bank on the sacking of Mr Adeduntan without recourse to the Central Bank’s supervisory role before such weighty decision was taken.

“Your comprehensive response on the foregoing should reach the Director, Banking Supervision Department, on or before 5:00 p.m. on April 29, 2021,” the query April 28 letter addressed to the bank’s chairman Ibukun Awosika and signed by the CBN Director of Banking Supervision, Haruna Mustafa, read.

The CBN said it was “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 added: “It is also curious to observe that the sudden removal of the MD/CEO was done about eight months to the expiration of his second tenure, which is due on December 31, 2021.” 

The CBN director noted that removing a sitting MD/CEO of a “systemically important” bank was not good.”