Governor of Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has expressed satisfaction that billionaire investors are scrambling for the shares of the First Bank of Nigeria.
Emefiele recalled that six years ago when the apex bank made intervention in First Bank, its share price was N2.
Not only that, he said investors were running away from the bank.
The CBN Governor spoke on Tuesday after the Monetary Policy Committee (MPC) meeting in Abuja.
The Star reports that billionaire Femi Otedola and First Bank chairman, Tunde Hassan-Odukale are at loggerheads over the controlling stakes in the bank.
Hassan-Odukale is claiming to own “cumulative equity stake” of 5.36 per cent of the bank while Otedola recently acquired 5.03 per cent shareholding.
The 1.05 per cent shareholding of Leadway Pensure PFA in the holding company is ascribed to Hassan-Odukale in a letter by FBN Holdings Company Secretary, Seye Kosoko, to the Nigerian Exchange Limited, dated October 26 and signed.
But the National Pension Commission (PenCom) has told Hassan-Odukale that he can’t appropriate the shareholding of pension funds in the bank.
The controversy over who is the largest shareholder in the First Bank of Nigeria Holding Plc is yet to be settled.
Emefiele said he had no problem with the investors battling for the controlling shares in the First Bank.
The Governor expressed satisfaction with the rush for First Bank’s shares.
“Why should I quarrel that people are competing for the shares of First Bank which six years ago was N2 and they were running away from it. It was N11.54 during the weekend. I’m happy to see that they are competing for the shares, but of course they should all know First Bank is so big that not one person can say he owns First Bank. They are just one and they should see themselves as representing others in running the bank,” Emefiele counselled the investors.
“It’s good for us to cast our mind back to the position of First Bank six years ago when CBN started its programme of looking at the banks to reposition them. Let us not forget First Bank remains the oldest bank in Nigeria way back 1894. I use the word strong, aggressively, domestically important bank in Nigeria.
“If anything happens to First Bank, it means something has happened to the Nigerian banking system. That is why we are taking over guidance about how to get the bank back very seriously.
“Six years like I said, there was an aggressive build-up of non-performing loans on the books of First Bank. The share price of First Bank was about N2. At that time, everybody was running away from the shares of First Bank. Today, we have cleaned the balance sheet. Now, the non-performing loans has dropped aggressively. This money making machine (FBN) is back again on the race for profitability. Investors are now competing for the shares of First Bank.”
Emefiele spoke on the position of the Securities and Exchange Commission (SEC) on shareholding percentages.
“Our examiners are looking into the matter. I think we should take SEC’s position for now because SEC is the regulator of the capital market. We will take their position and they will give guidance on this subject, but of course as it affects the running and operation of the bank we will take pre-eminence measure to make sure that the right things are done.
“Of course, naturally returns are sent to CBN about individual shareholders and of course if our position is not in tandem with the position of SEC, we will talk to SEC about it and we will also advise the public. But so far, I will say we should take the position of SEC as a regulator of the capital market. But I will just say I am very happy that people are scrambling today for the shares of First Bank,” he said.
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