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Crisis at First Bank intensifies as customers withdraw funds over uncertainty

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The First Bank crisis has deepened as customers engage in panic withdrawals over uncertainty surrounding the institution’s stability.

First Bank, one of Nigeria’s oldest and most prominent financial institutions, is battling governance challenges.

These challenges have eroded investor confidence and raised fears about the bank’s stability.

The crisis has drawn the attention of regulatory bodies, including the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).

Shareholders are demanding urgent intervention to safeguard the bank and the financial system.

Investigations by The Witness reveal that customers are withdrawing large sums from their accounts.

This wave of withdrawals stems from concerns over the safety of their funds.

Despite reassurances from FBN Holdings Plc, depositors remain unconvinced.

Diaspora digital media (DDM) gathered In a statement, the bank emphasized its commitment to corporate governance.

It assured stakeholders of uninterrupted operations and improved financial performance.

“The ongoing disputes do not affect our operations,” the bank said.

However, internal sources disclosed that the crisis has severely impacted First Bank’s operations.

A senior official confirmed that billions of naira have been withdrawn in recent weeks.

“Our marketers are under immense pressure,” the official said.

The official urged the CBN and government to act swiftly to restore confidence.

A chief accountant of a major oil firm confirmed the company’s precautionary measures.

The firm instructed First Bank to transfer its funds to another financial institution.

The accountant revealed that further transactions with the bank have been suspended.

The CBN is reportedly monitoring the situation closely.

Recent regulatory actions have heightened fears within the financial sector.

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The CBN recently revoked the license of Heritage Bank Limited.

It also sacked the boards of three commercial banks over governance failures.

The crisis at First Bank escalated following shareholder demands for an extraordinary general meeting.

The shareholders control 10% of the company’s shares.

They are calling for the removal of Group Chairman Femi Otedola and Non-Executive Director Julius B. Omodayo-Owotuga.

They allege that Otedola’s rise was facilitated by former CBN Governor Godwin Emefiele.

Otedola is accused of disrupting the bank’s governance structure.

The shareholders claim this has led to internal conflicts and instability.

They also criticized the dismissal of former CEO Dr. Adesola Adeduntan.

Additionally, they allege the sidelining of qualified candidates for leadership roles.

Otedola’s camp has dismissed the allegations as politically motivated.

They claim the aggrieved shareholders are influenced by former board members.

These board members are accused of engaging in fraud that destabilized the bank.

A petition to the EFCC seeks to prosecute the former board members.

The petition alleges that they were involved in fraudulent activities.

A former relationship manager, Adesuwa Ezenwa, made a damning revelation in August 2024.

She alleged that loans worth billions were funneled to companies linked to Oba Otudeko and Bisi Onasanya.

The loans were allegedly disguised as transactions for unrelated firms.

The EFCC has filed criminal charges against Otudeko and Onasanya.

The charges also implicate Soji Akintayo and Anchorage Leisure Ltd.

The allegations involve fraudulent transactions worth billions of naira.

The fraud allegedly occurred between 2013 and 2014 in Lagos.

The defendants are scheduled to appear in court on January 20, 2025.

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The EFCC plans to call representatives of First Bank as witnesses.

Key bank staff will testify about the fraudulent activities.

The EFCC will also present documents to support its case.

Representatives from the CBN and other organizations will also testify.

Additional witnesses include Farida Abubakar and Adaeze Nwakoby.

The charges violate the Advance Fee Fraud and Other Fraud Related Offences Act 2006.

These offences are punishable under Section 1(3) of the Act.

The First Bank crisis has raised alarm across the financial sector.

Depositors continue to withdraw funds despite assurances from the bank.

The situation underscores the urgent need for regulatory intervention.

Until confidence is restored, First Bank will face significant challenges.

The future of one of Nigeria’s most iconic financial institutions hangs in the balance.


For Diaspora Digital Media Updates click on Whatsapp, or Telegram. For eyewitness accounts/ reports/ articles, write to: citizenreports@diasporadigitalmedia.com. Follow us on X (Fomerly Twitter) or Facebook

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