Leadership Drama at FirstBank: Here is What We Know

Folake Ani-Mumuney, the former Global Head of Marketing and Corporate Communications at FirstBank Ltd, one of Nigeria’s leading banks, has resigned.

Ani-Mumuney, a highly respected figure in Nigeria’s marketing industry, played a key role in shaping the bank’s communication and marketing strategies.

However, sources from TheCable reports that her resignation was prompted by the bank’s chairman, Femi Otedola.
According to the report, Mr. Otedola was “seriously irked” by a lavish send-off party organized by the bank for Adesola Adeduntan, its former Managing Director.

The event, held on November 2, at Harbour Point, Victoria Island, Lagos, was in honor of Adeduntan, who served as GMD and CEO for nine years until April 2024.

Despite Otedola’s absence, the party had in attendance many dignitaries and top management of the bank.

Adeduntan himself resigned earlier this year under controversial circumstances as Otedola seeks to reposition the bank for improved competitiveness.

The TheCable report highlights sparked criticism from Mr. Otedola’s with the lavish send-off party, who described it as “insensitive and wasteful,” during a time when First Bank is focused on recapitalization and repositioning the institution from excesses of the past management

Reports show FirstBank’s Holdings operating expenses of N421.3 billion in the first nine months of 2024, a sharp increase from N212.1 billion recorded in the same period last year. Advertising and promotional expenses also saw a sharp increase, rising from N20 billion to N44.5 billion year-on-year.

The bank’s share price has risen 11% year-to-date, currently priced at N26 per share. FirstBank is also undergoing a rights issue aimed at strengthening its capital base.

Sources stated that he is committed to streamlining the bank’s operations and has consistently cautioned against “extravagant” spending.

According to TheCable, Otedola, who has in recent times developed a reputation for being a “no-nonsense activist investor”, is planning to take more “drastic” decisions and actions to keep First Bank on the track of impeccable banking “devoid of extravagance and waste of shareholders’ resources”

Despite these challenges, FirstBank’s share price has risen 11% year-to-date, now standing at N26 per share, and the bank is currently undergoing a rights issue to strengthen its capital base.

Otedola’s focus on cost reduction and curbing extravagant spending is believed to be at the heart of these changes, and he is reportedly planning to implement further measures to ensure the bank operates more efficiently.

Ani-Mumuney a highly regarded figure in the branding and communications industry, with several stakeholders has garnered praises for her contributions via social media. She had also been planning her exit from the bank for years to pursue personal ambitions.

What to know

The reported resignation has stirred discussions among First Bank’s senior leadership, raising questions about the future direction under Otedola’s guidance.

• The development reflects the chairman’s commitment to holding leadership accountable for decisions that may not align with the bank’s strategic goals.
• Adeduntan, praised for guiding the bank through difficult times, has remained silent on the matter.
• Despite the farewell event being attended by numerous dignitaries, including state governors, the controversy over the event’s costs continues to linger as the bank looks toward a future beyond Mrs. Ani-Mumuney’s tenure.
• First Bank has yet to issue an official statement regarding Ani-Mumuney’s position or the concerns reportedly raised by Otedola.
• However, this situation highlights broader efforts to foster a culture of transparency and financial responsibility within the institution.
• As Nigeria’s oldest bank, First Bank is navigating a pivotal period of transformation, with Otedola’s leadership signaling a strong focus on aligning the bank’s operations with the expectations of shareholders and the market.