Central Bank of Nigeria on Thursday said that sacking of the board of the bank was done “in order to preserve stability and protect minority shareholders and depositors of the bank.
Firstnewsonline had earlier reported on the sacking of the entire board of First Bank of Nigeria and appointed new directors, the regulator said in a statement, citing the previous board’s “sweeping changes” without alerting regulatory authorities.
The bank had been in “grave financial condition” when the regulator become involved in its management “to maintain financial stability” in 2016, giving it authority over FBN’s operations, the CBN said.
According to the apex bank, the actions being taken were meant to strengthen the bank and position it as a banking industry giant.
The regulator in 2016 sacked top executives of Skye Bank over capital adequacy issues, having in 2015 given three commercial banks time to recapitalise after they failed to hit a minimum capital adequacy rate of 10 percent.