
Shareholders of First Bank of Nigeria Limited, have tasked the Central Bank of Nigeria (CBN) on policies that would guard against insider-related borrowings by bank directors in the industry.
Dr Farouk Umar, President, Association for the Advancement of the Rights of Nigeria Shareholders,revealed that 90 per cent cause of bank failure was due to non-performing loans related to insider credit.
According to him,the apex bank should come consider policies that would prevent directors from borrowing from the banks they acted as directors in order to protect shareholders and depositors.
He supported the CBN action of dissolving the directors of FirstBank would be a lesson to all operators in the banking sector,adding that the regulators should compel banks and companies to report any regulatory query in their annual reports, for shareholders to ensure directors’ compliance.
He urged the new directors of FirstBank to stop insider related credit to boost confidence and protect investments.
Mrs Bisi Bakare, the National Coordinator, Pragmatic Shareholders Association of Nigeria, commended the apex bank for restating the bank’s Chief Executive Officer, Dr Adesola Adeduntan.
She advised Adeduntan to continue with his good works and transformation agenda in the bank.
“He should not allow the distraction to pull him down, he should continue with the good works he has been doing,” she said.
Mr Boniface Okezie, National Coordinator, Progressive Shareholders Association of Nigeria said the action would serve as a lesson to the Boards of other banks.