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Femi Otedola reportedly takes over First Bank

NIGERIAN billionaire and former chairman of Forte Oil PLC, Femi Otedola, has reportedly taken over First Bank of Nigeria Plc.

Reports on Friday stated that Otedola took over the bank with the acquisition of about ₦30 billion worth of shares, to become the single largest shareholder of the FBN.

As the largest shareholder, Otedola holds the highest voting shares, which gives him power to dictate the direction of the bank through his voting power.

It can be recalled that Femi Otedola had in 2019 divested his 75% direct and indirect shareholding in Forte Oil, via a merger of his company Zenon Oil and former African Petroleum.

The business tycoon had expressed interest in going into refining and petrochemicals as well as investing in the real estate and financial sector.

According to reports, Otedola decided to take over First Bank Nigeria due to the internal crisis rocking the bank.

Naija Times had reported that the Central Bank of Nigeria had sack both the chairman of the bank, Ibukun Awosika, and Obafemi Otudeko, the chairman of FBN Holdings, in an effort to stabilize the bank and its quest to maintain financial stability, especially given First Bank’s systemic importance.

The apex bank had stated that the problems at the bank were attributed to bad credit decisions, significant and non-performing insider loans and poor corporate governance practices.

It said the shareholders of the bank and FBN Holding Plc also lacked the capacity to recapitalize the bank to minimum requirements.

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Naija Times