The board of First Bank of Nigeria Plc (FBN) Group has appointed Dr. Oba Otudeko as Chairman of FBN Holdings Plc (FBN HoldCo), which is being established in compliance with the Central Bank of Nigeria (CBN) regulation.
A statement exclusively obtained by THISDAY, also revealed that Mallam Bello Maccido was appointed the Chief Executive Officer of the FBN HoldCo.
Otudeko had retired as Chairman of FBN in December 2010.
Maccido until the appointment was the Executive Director, Retail North, FBN.
The Central Bank of Nigeria (CBN) had about two years ago, scrapped the universal banking model and directed commercial banks to sell their stakes in non-banking subsidiaries or adopt a HoldCo structure.
First Bank Group has since adopted the HoldCo structure. The financial institution, which has also gotten regulatory approval will on September 24, 2012, seek the approval of its shareholders on the new banking structure.
The court-ordered meeting is to get shareholders’ approval for transfer of ownership from First Bank of Nigeria Plc to the holding company - FBN Holdings Plc.
Other members of the board include General Garba Duba (rtd), Mr Oye Hassan-Odukale, Mallam Abdullahi Mahmoud and Alhaji Tijjani M. Borodo, who will also serve as Company Secretary.
The statement explained: “Within the context of its strategy and in furtherance of its objectives the FBN Group in 2009 undertook a comprehensive review of its governance structure. The review resulted in the development of a new group governance model, which has at its core a holding company structure.
“The holding company structure was determined as the best option to enable it continue with the pursuit of its long held vision of being the leading diversified financial services group, while complying with the new regulations introduced by the CBN.
“Having secured approval from the regulator to operate as FBN Holdings Plc, the First Bank Group has appointed Dr. Oba Otudeko (CFR), as Chairman of the Board of Directors of the holding company.”
Explaining how the HoldCo will work, the Group Managing Director of FBN Plc, Mr. Bisi Onasanya, had said it would be regulated by the CBN.
“First Bank will continue to focus on the core banking business and will retain FBN United Kingdom (UK), FBN Bureau de Change, First Pension Custodian and Banque Internationale de Credit as its subsidiaries.
FBN Capital will be the primary vehicle of our investment banking and asset management business. “First Registrars is in the process of being divested in compliance with the new regulation, while FBN Mortgages will divest its equity investments in real estate in accordance with CBN rules and the mortgage activities will be transferred to the bank,” he said.