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CBN Queries First Bank Over Change Of CEO

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CBN Queries First Bank Over Change Of CEO

The Central Bank of Nigeria (CBN) has queried the Board of the First Bank of Nigeria Plc for removing Dr. Adesola Adeduntan, the Managing Director/Chief Executive Officer from his role, without regulatory approval.

The query is contained in a letter dated April 28, 2021, signed by the CBN Director, Banking Supervision, Haruna Mustafa. It was addressed to the bank’s Chairman, Ibukun Awosika.

READ ALSO: Fowler Returns To EFCC For Query Over Fresh Fraud Allegation

Mustafa said that the action was taken without due consultations with the regulatory authorities, especially given the systemic importance of the commercial bank.

He noted that the tenure of Adeduntan has yet to expire.

“The CBN was not made aware of any report from the board indicting the managing director of any wrongdoing or misconduct; there appears to be no apparent justification for the precipitate removal.

“We are 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 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 Dec.  31, 2021,” he added.

Mustafa noted that the removal of a sitting MD/CEO of a systemically important bank was not good.

“The removal of a sitting MD/CEO of a systemically important bank that has been under regulatory forbearance for five to six years without prior consultation and justifiable basis has dire implications for the bank and also portends significant risks to the stability of the financial system.

“In light of the foregoing, you are required to explain why disciplinary action should not be taken against the board for hastily removing the MD/CEO and failing to give prior notice to the CBN before announcing the management change in the media.

“In the meantime, you are directed to desist forthwith from taking any further public/media comments on the matter. Your comprehensive response on the foregoing should reach the Director, Banking Supervision Department, on or before 5 p.m. on April 29, 2021,” he said.

According to reports, First Bank on Wednesday, April 28, announced the appointment of Gbenga Shobo as the new Managing Director and Chief Executive Director.

Awosika said that the appointment was subject to all regulatory approvals.

She said that Shobo succeeds Adeduntan who would be leaving the bank in accordance with the bank’s term limit for its chief executive after successfully leading the bank since January 2016.

“These decisions will take effect from today, April 28, 2021,” Awosika said.

“We are proud to announce Gbenga Shobo as our new Managing Director/Chief Executive Officer.

“His appointment has proven the resilience of our succession planning mechanisms and the value we place on our long-standing corporate governance practices, which underpin the institution’s enduring sustainability and 127-year legacy.

“Shobo has had a successful career in the bank and elsewhere culminating in his appointment as the deputy managing director in 2016 prior to his appointment as the managing director.

“The board is confident that Shobo has the experience and the understanding of the bank and the know-how to lead the bank through this next phase of growth, which is focused on positioning First Bank as the preeminent bank in our chosen market, delivering value to our stakeholders,” she added.

Awosika said that the bank also appointed Abdullahi Ibrahim as the Deputy Managing  Director.

According to her, Ini Ebong, Segun Alebiosu, Seyi Oyefeso, and Bashirat Odunewu were also appointed as executive directors.

She noted that these decisions were subject to all regulatory approvals.

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Millionaires Emerge in UBA Savings Promo as 10 Customers win N1m Each

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United Bank for Africa (UBA) Plc, has rewarded 10 of its loyal customers with a total sum of  N10m in the quarterly draws

Pan African financial institution, United Bank for Africa (UBA) Plc, has rewarded 10 of its loyal customers with a total sum of  N10m in the quarterly draws of the ongoing UBA Savings Promo.

This promo, which is held every quarter, is intended to appreciate loyal customers of the bank, who have stayed with the bank over the years,  and offers fresh opportunities for potential and intending customers to join the growing number of UBA millionaires who have in the past benefitted from several Promo.

The virtual and transparent electronic draw which was held on Friday was transmitted live via zoom and the Facebook platform in strict compliance with social distancing rules as directed by the Federal and Lagos State Government.

READ ALSO: UBA CEO, 2 Others Resign From NESG Board, Here’s Why

UBA’s Head Personal Banking, Osita Ede, who addressed participants just before the draws, said there is no better time to give back and delight customers than this challenging economic period where people need all the support, they can get to make life more meaningful.

He said, “As a bank, UBA has been rewarding customers, we have been doing this for several years now; from the Wise Savers Promo, Bumper Draws, and now this. We have been doing this to touch lives and to show appreciation to our customers to tell them we are grateful for their business. This is also an opportunity to reward them for their loyalty to the bank.

Ede added that the promo is also a way of encouraging savings in a bid towards promoting financial inclusion, as statistics show that a lot of Nigerians are still largely underbanked.

“Our key objective is to encourage our customers to save regularly. We are here to support them and encourage them to save and ultimately grow as well, because we are aware that they are invaluable to all that we do;” Ede explained.

A representative of the National Regulatory Commission, Peace Ibadie, who witnessed the draws, congratulated the 10 winners and commended the bank for its efforts at rewarding loyal customers especially in the tough economic and business environment.

Congratulations to all the winners, I am glad to be a part of this; UBA is always transparent in their promos and we can fully attest to this. It is important that the bank is also actively encouraging the savings culture. Again, I say congratulations,” she said.

READ ALSO: UBA Poised To Change The Face Of E-Banking With New Mobile App

The winners who cut across all the zones of the country are Emeka Onyemauche; Ezeigbokwe Oluebube Purity; Omoniyi A Jaiyeola; Olawale Omotayo Idowu; Zaharadeen Yandaki Umar; Aliyu Yaro Bakari; Samuel Enan Esua; Joseph Eze; Deborah Folusho Adebayo and Lucia Chinyere Adim.

When contacted via their mobile phone, the winners expressed their gratitude to the bank as they said the winnings will go a long way in meeting their pressing needs especially in these trying times.

One of the winners, Samuel Enan Esan, who was delighted at the news that he just won N1m, was full of praises. “Thank you UBA,” he stated.

Aliyu Yaro Bakari. who was extremely excited at the news, said, “Oh I am very happy, UBA is the best, you are the best, thank you very much,” he remarked when he learnt he was also one of the beneficiaries of N1m.

To qualify for the promo, new and existing customers of the bank are expected to make a one-time deposit of at least N30,000; before each draw date. Savings account holders eligible for this draw include Target, Bumper, Next Gen, Savings, Teens & Kiddies.

Apart from the savings promo which is held every three months, the bank also has the UBA Bumper Promo which is held monthly, where the first three winning customers are rewarded with N2m, Rent for a year at N1.2m and N500,000 respectively; with 20 others winning N100,000 each as consolation prices.

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than twenty million customers, across 1,000 business offices and customer touch points, in 20 African countries. With presence in New York, London and Paris, UBA is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance and ancillary banking services.

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Ramadan: SMEs Lament Decline In Sales

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Ramadan: SMEs Lament Decline In Sales
Image used for illustrative purpose

It took the Ramadan period for Josephine Oluwole, a wine store owner, to discover that the majority of her customers are Muslims. She made the discovery after experiencing that decline in sales since the start of Ramadan.

Oluwole, in a chat with Newsrand, said her sales dropped considerably low and has since been struggling to make sales from her alcohol brands, as demands have shifted towards non-alcoholic products.

According to her, bottled water and soft drinks have become her best selling products during this period, relegating Whiskey, Vodka, and other premium brands that topped sales pre-Ramadan.

“Ramadan has really affected sales because the demand for alcoholic drinks is very low compare to other previous months. Like I said earlier, demands on alcoholic drinks are very low because most of my customers are Muslims, they won’t drink either buy for someone. The products on-demand now are non-alcoholic wine, beverages, and water and this is because all those don’t contain alcohol,” she stated.

Read Also: RAMADAN: Pray For Peace In Nigeria- Gov. Sanwo-Olu Appeals

Commenting on how she has managed the business since Ramadan, Oluwole who opened her wine store due to her inability to secure a job in the private sector, said she has devised new ways to keep her business functional, but her profitability is nothing compared to what she’s used to.

“I tried as much as possible to double the quantity of the beverages and water I sell. For instance, before Ramadan, I can buy 5packs of Chivita and 20 bags of water which doesn’t last till 5days most time, but now I have doubled the bags of water I buy like the beverages because people tend to buy that more than the alcoholic drink,” she added.

Oluwole is however not the only small business owner affected by the holy period. One Christian Eze, a caterer, also lamented that her sales have been low, as her customer base has depleted since the fast started.

She now sells mostly to non-Muslims, as the fast compels Muslims to eat as late as 7:00 pm, and as early as 5:00 am.

“Sales have dropped, but I understand why. It happens every year. Once Ramadan ends, I’m sure they would start patronising me again,” he expressed belief.

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International Container Terminal: We Have No Relationship With Dangote

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International Container Terminal: We Have No Relationship With Dangote

Port management company, International Container Terminal Services, has refuted the report that it’s owned by business magnate, Aliko Dangote.

Refuting a report credited to Sahara Reporters that it’s owned by Dangote, the port management firm, in a statement signed by its Senior Vice President, Hans-Ole, Madsen, said there’s no form of relationship between them as the report claimed.

The statement read: “We would like to clarify that International Container Services Inc. (ICTSI) is a Philippine publicly listed independent company engaged in operations in 33 ports on 6 continents. ICTSI ranks as a top-ten port operator in the world While advising that details of the company’s ownership can be found on its website the Madsen restated.

“ICTSI is not owned or in any way affiliated with the Dangote Group of companies.”

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