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First Bank MD, Sola Adeduntan, Wanes As The Bank Suffers Huge Debt Portfolio

Published

6 years ago

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The headship of banking institutions is one job that comes with monstrous challenges, envisaged or unforeseen. Almost all of Nigerian banks’ managing directors/chief executive officers always take over from their predecessors amidst jubilation and cheery smiles.

But no soon had they taken their seat and settled to face the reality and enormity of the task before them than they began showing signs of rapid ageing. So when next you run into the Managing Director/Chief Executive Officer of First Bank of Nigeria Plc, Sola Adeduntan, chances are there would be bags under his eyes.

The MD has finally burned through his euphoric spells of fantasy to chance on cold, brutal reality. Consequently, this has put the bank MD in a bind. First Bank currently groans under the weight of huge debts portfolio by its A-list customers. The bank’s debtors, comprising Nigeria’s superrich, have failed to refund loans taken from the bank to the extent that some of the loans have to be written off as bad debt.

Consequently, Sola, the erstwhile sinewy and athletically-built MD is losing sleep over the huge debts. He has lost so much weight in the last couple of months, his eyes are sunken and his cheeks have lost their rosy glow. Although many of his business associates and subordinates initially passed his weight loss off as a deliberate effort by the MD to keep fit, now they know better.

The financial situation of Nigeria’s premier bank which he is overseeing is stealthily taking its toll on him. Perhaps, Adeduntan has been having worrying sleepless nights lately; no thanks to unpalatable state of things FBN-Holdings: a decline in the bank revenue in the first quarter of this year and a huge debt portfolio does not like melodious music to the ears.

FBN posted N138.9 billion revenue in first quarter, representing 1.6 percent decline from N141 billion posted in the same period in 2017. While the debt portfolio of the bank can only be traced to a time when his predecessor was managing the bank, he has inherited the tough task of retrieving bad loans running into tens of billions of Naira. Generally, Nigerian banks’ principal exposure to the energy sector has hit an all-time high of $12 billion, and recovery of larger percentage of these debts have become a tough task for the lenders.

FBN is said to be one of those with very huge exposure which is fast proving to be unhealthy. Aside from the $500 million in principal exposure to the downstream sub-sector, Nigerian banks have reportedly staked over $11.6 billion into portfolios by local and international investors, who participated in the string of acquisitions in the oil and gas sector between 2010 and 2015 as well as the takeover of assets created from the defunct Power Holding Company of Nigeria (PHCN).

Information available to TheCapital suggests that Adeduntan might have adopted an iron fist approach to recover a substantial sum of these loans by resorting to collateral takeover. In fact, our source reveals that he has constituted a team charged with the recovery responsibility with periodic targets, and that the team is already making some progress, though with snail speed.

Source: The Capital

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Former Governor Ifeanyi Okowa, Spends Second Night In EFCC’s Cell Over N1.3 Trillion Alleged Fraud

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7 hours ago

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November 7, 2024

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Immediate past governor of Delta State, Ifeanyi Okowa, who was arrested and detained by the Economic and Financial Crimes Commission (EFCC) has spent second night in the custody of the anti-graft commission.

 

Okowa is currently being investigated and detained over the alleged diversion of N1.3 trillion.

 

The N1.3 trillion reportedly represents the 13% derivation fund from the federation account between 2015 and 2023.

 

According to sources within the commission, Okowa was invited to the EFCC office in Port Harcourt, Rivers State, where he’s subsequently detained by officials.

 

One of the sources stated, “Okowa was at our Port Harcourt office following an invitation from investigators probing the allegations against him. He was then arrested. The commission is investigating him regarding the N1.3 trillion 13% derivation fund from the federation account between 2015 and 2023.

 

“He is also accused of failing to account for the funds, as well as another N40 billion he allegedly claimed was used to acquire shares in UTM Floating Liquefied Natural Gas. He reportedly bought shares worth N40 billion in one of the country’s major banks, representing an 8% equity stake, to support the offshore LNG project. The funds are alleged to have been misappropriated for other purposes.

Investigators are also examining the alleged diversion of funds by the former governor to acquire estates in Abuja and Asaba, Delta State. He is currently being held at the EFCC facility in Port Harcourt.

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Lagos Government Shuts Down Redeemed Church, Celestial Church, Clubs, Event Centres Over Noise Pollution

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20 hours ago

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November 6, 2024

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The Lagos State government has shut down a branch of Pastor E. A. Adeboye’s Redeemed Christian Church of God, a Celestial church, nightclubs and event centres over noise pollution.

The Commissioner for Environment and Water Resources, Tokunbo Wahab, who made this known on Wednesday, said the churches, clubs and event centres were sealed on Tuesday by the Lagos State Environmental Protection Agency (LASEPA) in the Ogudu, Gbagada, Iyana Ejigbo, Isolo, Ajao Estate, Oshodi, Ilasamaja, and Okota areas of the state.

The sealed establishments include: Redeemed Christian Church of God, Celestial Church of God, OMA Nightclub and Lounge, Lounge & Lodging, Bridge Spot Bar, Okiki Event Center and Hall, Emota Paradise Hotel (Phase 2), CF Hotel & Suites, House 27 Hotel & Suites, Echo Spring Hotel, and Smile T Continental Hotel.

The commissioner in a post on X said, “In a bid to address noise pollution and other environmental violations, the Lagos State Environmental Protection Agency (LASEPA) took action yesterday, closing down several establishments across different parts of the state.

“This enforcement drive, focusing on areas like Ogudu, Gbagada, Iyana Ejigbo, Isolo, Ajao Estate, Oshodi, Ilasamaja, and Okota, is part of LASEPA’s continuous efforts to uphold environmental standards and safeguard public health.

“The affected establishments include Honourable Lounge & Lodging, Redeemed Christian Church of God, Celestial Church of God, OMA Nightclub and Lounge, Bridge Spot Bar, Okiki Event Center and Hall, Emota Paradise Hotel (Phase 2), CF Hotel & Suites, House 27 Hotel & Suites, Echo Spring Hotel, and Smile T Continental Hotel.”

 

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Gen. Taoreed Lagbaja: Tinubu directs flags be flown at half-mast

Published

21 hours ago

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November 6, 2024

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President Bola Tinubu has directed that Nigeria’s national flags be flown at half mast for seven days across the country to mourn the passing of the late Chief of Army Staff, Lt. Gen. Taoreed Lagbaja.

The late Army chief, who was appointed by Tinubu on 19 June 2023, was said to have passed away on Tuesday night after a prolonged illness.

The Secretary to the Government of the Federation, George Akume, in a statement on Wednesday by his office Director of Information & Public Relations, Segun Imohiosen, said the president expressed regret over Lagbaja’s death.

Akume said, “President Bola Tinubu has expressed regret following the death of the Chief of Army Staff, Lieutenant General Taoreed Abiodun Lagbaja, after a brief illness at the age of 56.

“The President has directed that national flags be flown at half mast throughout the country for seven days in honour of the departed Army chief.

“He profoundly appreciates the services of the departed to the nation and wishes the family the fortitude to bear the great loss.”

Meanwhile, the Ministers of Defence, Mohammed Badaru and Bello Matawalle, have commiserated with the president, the military, and Lagbaja’s family over his death.

In a statement by the Ministry’s spokesperson, Henshaw Ogubike, the ministers described Lagbaja’s death as a great loss to his family, the Army, and the nation at large.

“The passing on to eternal glory shocked us at the Ministry of Defence, as our working relationship with him was commendable; he exhibited the spirit of camaraderie and cooperation with us in the discharge of our mandate.

“The late Chief of Army Staff contributed significantly to internal security operations across Nigeria and also exhibited a high level of professionalism.

“He will be greatly missed by the family, the military, and the nation, as he served the nation with commitment and dedication,” the statement added.

 

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