Emefiele Harps On First Bank’s Importance, Says FBN Too Big To Fail
Godwin Emefiele, CBN Governor
The Central Bank of Nigeria (CBN) has harped on the importance of FBN Holdings Plc in the Nigerian economy, saying that the bank is big and will not be allowed to fail.
The CBN governor, Godwin Emefiele who spoke with journalists on Tuesday after the Monetary Policy Committee’s two-day meeting at the CBN headquarters in Abuja, stated that the regulator will ensure that the right things are done regarding the shareholding tussle at First Bank of Nigeria.
Emefiele, according to insidebusiness.ng, said that the Securities and Exchange Commission (SEC), the capital market regulator is responsible for issues relating to shareholding.
“As it affects the running and operations of the bank, we (CBN) will take preeminence in ensuring that the right things are done,” he said.
According to Emefiele, the First bank is very relevant to the Nigerian banking sector because it is the oldest bank in the country.
“Remember that First Bank was established in 1894 and is the oldest bank in Nigeria. It is a powerful domestically significant bank in Nigeria. If anything happens to First Bank, it means that something has gone wrong with the Nigerian banking system. And it is for this reason that we are taking advice on how to keep the bank afloat very seriously.“
“Six years ago, as a result of the accumulation of non-performing loans on the books of First Bank, the fair value of the share price was approximately N2 per share, and we took it on while everyone else was fleeing. Because we have cleaned up the balance sheet, non-performing loans have dropped dramatically. People are seeing that First Bank is returning to profitability and are now competing for a stake in the company,” Emefiele said.
He added, “Why should I argue that people are competing for the shares of First Bank, which was N2 six years ago and they fled from it? I looked at First Bank’s share price, it was N11.55kobo over the weekend. I am pleased to see that they are competing for First Bank shares. Of course, we all know that First Bank is so large that no single person can own it. In running the banks, they should see themselves as representing others.”
“Naturally, returns are sent to CBN about individual shareholders. And of course, if our position is not in tandem with that of SEC, we will talk to SEC about it.
“So far, I think we should take the position of SEC as the regulator of the capital market because regulating share price and ownership is the sole responsibility of SEC.
“We would not want to override SEC on these issues but we will continue to work with them. We have a very good relationship with them.”
Emefiele’s assertion on the First bank is coming on the heels of the ownership tussle between Femi Otedola and Tunde Hassan-Odukale, following the former’s 5.07 per cent acquisition of First Bank shares in October.
Following the acquisition, speculations became rife that the business magnate had become the single largest shareholder and was in a pole position to take over as chairman of FBN Holdings Plc, the parent company of First Bank of Nigeria.
FBN Holdings filing at the Corporate Affairs Commission (CAC) later showed that Tunde Hassan-Odukale owns 5.36 per cent shares of the company.
Insidebusiness.ng
