UPDATE: Gbenga Shobo exits First Bank after controversial appointment

Gbenga Shobo has exited his role as the Deputy Managing Director of First Bank of Nigeria (FBN), the financial institution has disclosed.

Shobo joined First Bank’s board in 2012. Prior to his appointment as Deputy Managing Director, he was the Executive Director overseeing the Retail Banking/Public Sector businesses in the Lagos & West Directorate.

The banker also served as the Executive Director overseeing the Retail Business in the South Directorate.

However, his tenure as the Deputy Managing Director of First Bank ended on February 27, 2023, a corporate document obtained by Ripples Nigeria on Tuesday showed.

The document addressing First Bank shareholders and the investing public was dated March 6, 2023. It stated that Shobo retired effectively last week Monday, as he nears the mandatory retirement age of 60 on June 2, 2023.

Aside from the retirement age forcing his exit, First Bank also revealed that Shobo vacated his position due to the new tenure of directors set by the Central Bank of Nigeria (CBN).

“The Board accepted the Notice of Retirement of the Deputy Managing Director, Mr. Gbenga Shobo effective February 27, 2023.

“The retirement comes ahead of Gbenga attaining the mandatory retirement age of 60 on June 2, 2023, and in compliance with a recent directive of the Central Bank of Nigeria (CBN) on Tenure of Directors, via a Circular dated February 24, 2023, to Deposit Money Banks (DMB).

“The Board appreciates his meritorious service to the Bank and wishes him success in his future endeavours,” First Bank said.

Controversial appointment and sack

Before his exit, Shobo was appointed as the Managing Director and Chief Executive Officer of First Bank in April 2021, replacing the current MD/CEO, Adesola Adeduntan.

The appointment was controversial as the CBN said it didn’t follow due process after Adeduntan was sacked by the former board to make way for Shobo.

Godwin Emefiele-led central bank rejected the appointment of Shobo and the sack of Adeduntan, reinstating the latter, while Shobo was sacked as MD and made Deputy to Adeduntan.

Also,CBN sacked the board behind the leadership change. Aside from not allegedly following due process, the apex bank said the appointment will have dire implications for First Bank and affects stability in the financial system.