The stage is set for a high-stakes showdown at FBN Holdings Plc as a group of shareholders, wielding 10% of the company’s shares, has formally demanded an Extraordinary General Meeting (EGM).

ThisDay reports that their aim is to unseat the bank’s Chairman, Mr. Femi Otedola, and his ally, Mr. Julius B. Omodayo-Owotuga, a deputy chief executive of Geregu Power Plc. The demand, made under Section 215(1) of the Companies and Allied Matters Act (CAMA), places FBN Holdings on a 21-day countdown to address one of the most dramatic power struggles in Nigeria’s financial sector.

At the heart of the crisis is an explosive mix of allegations, personal ambitions, and questions about governance that have left the 129-year-old institution embroiled in controversy.

Femi Otedola’s journey to the chairmanship of FBN Holdings is now being dissected with forensic scrutiny. Shareholders allege his rise was orchestrated by former Central Bank of Nigeria (CBN) Governor Godwin Emefiele, who purportedly paved the way for Otedola’s significant share acquisition. The story is said to have begun with a private meeting at Emefiele’s Ikoyi residence, where former First Bank CEO, Dr. Adesola Adeduntan, was instructed to cooperate with Otedola’s takeover plan.

What followed, shareholders claim was a carefully curated strategy to dismantle opposition and establish an unchallenged hold over the bank. Key figures, including Adeduntan, former Chairman Tunde Hassan-Odukale, and others, were removed or sidelined in favor of individuals allegedly loyal to Otedola. The appointment of Mr. Olusegun Alebiosu as Managing Director, despite his poor performance in the recruitment process, and the controversial influence of Mr. Akin Akinfemiwa, a non-executive director, are presented as evidence of Otedola’s consolidation of power.

Private Placement or Power Play?

One of the most contentious issues fueling the crisis is a proposed N360 billion private placement of shares. Many argue that the private placement would disproportionately benefit Otedola, giving him unassailable control of the bank.

“This isn’t about raising capital; it’s about control,” a concerned shareholder was quoted as saying.

Calls for a public offer or rights issue, which would allow broader participation and mitigate concerns over dominance, have been met with resistance. Shareholders fear that the private placement, combined with Otedola’s existing influence, could turn the institution into a personal fiefdom.

Allegations of Past Mismanagement

Otedola’s critics are not stopping at his current maneuvers. They point to his past, citing instances where he was associated with the collapse of financial institutions burdened by non-performing loans. These loans, later absorbed by the Asset Management Corporation of Nigeria (AMCON), have raised questions about Otedola’s “fit and proper” status to lead a financial institution of First Bank’s stature.

“He couldn’t have passed the basic integrity tests without influence from Emefiele,” said one of the dissenting shareholders.

A Bank in Turmoil

The fallout from Otedola’s leadership has reportedly extended to the bank’s operations and staffing. In a sweeping restructuring effort, nearly 100 senior staff members were laid off, a move some see as an attempt to purge opposition and install loyalists.

The dismissal of Group Head Folake Ani-Mumuney, allegedly for hosting a send-off event for Adeduntan, and the removal of journalist Ms. Ijeoma Nwogwugwu from a non-executive role at a subsidiary, have been highlighted as examples of Otedola’s hands-on—and heavy-handed—approach to governance.

“Since when does a non-executive chairman of a holding company dictate operational decisions within the bank?” one industry insider asked.

The Shareholding Dispute

Adding to the crisis is the battle over shareholding. While FBN’s 2023 audited accounts list Otedola as the largest single shareholder with a 9.41% stake, recent data from the Central Securities Clearing System (CSCS) and the bank’s registrars show Barbican Capital, affiliated with Oba Otudeko’s Honeywell Group, holding a 15.01% stake. This discrepancy has led to a legal challenge from Barbican Capital, alleging misrepresentation of shareholding in official reports.

The Role of Regulators

As the shareholders’ demand for an EGM gains momentum, attention turns to the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN). Both regulators will play critical roles in determining whether the EGM proceeds and what actions might follow if the shareholders succeed in their bid to remove Otedola.

This crisis transcends personalities and extends to the broader issues of corporate governance, regulatory oversight, and the future of Nigeria’s banking sector. For shareholders and stakeholders, the fight at FBN Holdings is not just about who leads but about preserving the integrity of one of the country’s most iconic institutions.

The coming weeks will reveal whether Otedola’s critics can muster the support needed to unseat him or if his grip on the bank will tighten further, reshaping First Bank into a new, controversial chapter of its storied history.

President-elect Donald Trump, facing a historic felony conviction for falsifying business records in connection to a hush money payment, was formally sentenced Friday in New York.

In a highly unusual move, Manhattan Judge Juan M. Merchan handed down an unconditional discharge, declining to impose any punishment. This outcome cements Trump’s conviction while allowing him to assume the presidency unencumbered by fines, jail time, or community service.

What is an Unconditional Discharge?

Under New York law, an unconditional discharge is a sentence that ends a case without imposing penalties such as fines, probation, or imprisonment. While the conviction remains on the record, the judge essentially deems further punitive measures unnecessary.

Judge Merchan’s decision to opt for this leniency in Trump’s case is unprecedented for a felony conviction, particularly given the high-profile nature of the charges. Prosecutors supported the no-penalty sentence, describing it as a way to conclude the case without prolonging constitutional and political debates.

Case Background: The Hush Money Scandal

The case stemmed from a $130,000 payment made to adult film actress Stormy Daniels during Trump’s 2016 presidential campaign. Daniels alleged that the payment was intended to silence her claims of a sexual encounter with Trump a decade earlier. Prosecutors argued that Trump falsified business records to conceal the payment as a legal expense, a violation of New York state law.

Trump maintained his innocence throughout the trial, repeatedly denouncing the case as politically motivated.

During the sentencing hearing, Trump called the trial “a very terrible experience” and denied any wrongdoing. Afterward, he took to his social media platform, declaring: “Today’s event was a despicable charade, and now that it is over, we will appeal this Hoax, which has no merit, and restore the trust of Americans in our once great System of Justice.”

Impact of the Conviction

Though Trump avoided penalties, the felony conviction carries significant legal and reputational implications such as:

1. Voting Rights: Trump, a registered voter in Florida, retains his right to vote, as Florida restores voting rights to felons upon completion of their sentence.
2. Firearms Restrictions: Federal law bars felons from possessing firearms, potentially affecting Trump’s gun ownership rights.
3. DNA Sample Requirement: Under New York law, Trump must submit a DNA sample for the state’s crime database, though it is unclear how this will be enforced given his unique circumstances.

Speaker of the House Mike Johnson joined Trump’s allies in condemning the case, describing it as a politically motivated “witch hunt.” Johnson also attacked the prosecution team, calling them “deranged” and reaffirming his support for Trump’s appeal.

“This entire case against President Trump has been a politically motivated and contrived witch hunt aimed solely at preventing him from returning to the White House,” Johnson stated.

Criticism of Trump’s Behavior

Prosecutors took issue with Trump’s attacks on the judiciary, including his claims of a corrupt and biased legal system. Assistant District Attorney Joshua Steinglass argued that Trump’s rhetoric has undermined public confidence in the rule of law.

“The once and future President of the United States has engaged in a coordinated campaign to undermine its legitimacy,” Steinglass said during the sentencing.

Broader Impacts of The Ruling

This case marks a historic moment in American politics and jurisprudence: the first time a former president—and an incoming president—has been convicted of a felony. While the conviction solidifies Trump’s status as a polarizing figure, it also underscores the tension between the legal system and the political landscape.

With three additional indictments looming, this may be the only criminal case against Trump to go to trial. The outcome sets a complex precedent, leaving legal experts and political observers divided over the implications for justice and governance in the United States.

As Trump prepares to return to the White House, the unresolved questions surrounding his conviction and its political aftermath will likely remain a point of contention for years to come.

If criminals are expected to pay taxes from proceeds of crime, the implication is that what they do could be used to model the GDPs of nations, some posit. It does seem like Nigeria is going after that playbook: “…the National Bureau of Statistics (NBS) announced plans to include illegal and hidden activities, such as drug trafficking and prostitution, in the calculation of Nigeria’s Gross Domestic Product (GDP).”

This is very intriguing considering that it could be a poison pill where in order to boost GDP numbers, you suddenly tell the world how large some vices are flourishing and growing in your ecosystems. This is where the national GDP will break with state GDP composites since most state governors will not like to have any record for some of those lines.

Personally, I do not think it is necessary because we will not want these components to grow. It is better we discount them, or model them indirectly, but giving them a full recognition may not send the right message for our core national values.

Sure – the smarter people run this show. But it may be hard to push for GDP growth if doing that will mean growing components like drug trafficking, kidnapping, prostitution, etc. I mean, where do you stop?

Nigeria’s National Bureau of Statistics to Include Prostitution, Drug Trafficking, and Other Illegal Activities in GDP Calculation

In a controversial move that has drawn mixed reactions, the National Bureau of Statistics (NBS) announced plans to include illegal and hidden activities, such as drug trafficking and prostitution, in the calculation of Nigeria’s Gross Domestic Product (GDP).

This decision, announced at a sensitization workshop organized in collaboration with the Nigerian Economic Summit Group (NESG), has sparked widespread debate, with critics accusing the agency of attempting to whitewash the current administration’s economic performance.

The rebasing exercise, which also proposes 2019 as the new GDP base year and 2024 as the new base year for Consumer Price Index (CPI) computation, is said to align Nigeria’s economic metrics with global best practices. The Statistician-General of the Federation, Prince Adeyemi Adeniran, described the move as vital to ensure that the country’s economic indicators reflect current realities.

Global Standards or Local Politics?

The inclusion of illegal and hidden activities in GDP computation is in line with the System of National Accounts (SNA) 2008, a global framework that recommends capturing all economic activities, regardless of their legality, to provide a comprehensive picture of an economy.

Dr. Baba Madu, Head of National Accounts at the NBS, explained the rationale behind the move: “If you are into, for instance, drugs, there are some countries, it is this drug that is driving their economy. It is illegal here because there is no legal backing. Also, prostitution. They also earn income. Some even live bigger than those in the formal sector. The SNA does not say no to these, it is we. But the challenge is the legal backing and how we get the data.

“And then, of course, the hidden economy. If I ask you, how much do you earn in a month, you will lower your income. Or if somebody is selling provision in a store, and before you know it he started selling India hemp. Those are the things we are seeing. There are challenges all over the world. But the beauty is that they are less than 3.0 to 3.5% of the GDP,” he said.

Dr. Tayo Aduloju, Chief Executive Officer of NESG, highlighted the potential benefits of GDP rebasing, such as improving Nigeria’s creditworthiness and attracting foreign investment. However, he cautioned that credibility is key.

“Accurate data enhances credibility. Our debt-to-GDP ratio, a critical indicator of fiscal health, dropped from 19% to 11% after the 2014 rebasing,” he said.

“This improved Nigeria’s creditworthiness, making us a more attractive destination for foreign direct investment. Investors are drawn to transparency and growth potential, and rebasing sends a clear message: we understand our economy, and we are open for business.

“Second, rebasing sharpens policymaking. It provides a detailed map of our economic terrain, enabling governments to identify high-growth sectors for scaling and low-growth sectors that require targeted interventions to drive impactful and balanced development. For example, after Ghana’s 2010 rebasing—which resulted in a 60% GDP increase—its policymakers could better plan for infrastructure and social investments, fueling sustained growth.”

However, the timing and approach of the initiative have fueled suspicions about its underlying motives.

Accusations of Whitewashing

Observers argue that the inclusion of illegal activities in GDP calculation is part of an ongoing effort by the agency to portray the government in a favorable light, even at the expense of statistical integrity. This isn’t the first time the NBS has come under scrutiny.

Last year, the agency faced criticism when it revised its definition of employment in a manner that included anyone who worked for at least one hour per week and received compensation. This change, seen as an attempt to downplay Nigeria’s unemployment crisis, was widely criticized by economists and policy experts, who warned that such manipulations could undermine effective policymaking. They warned that without accurate data, the government risks implementing policies that fail to address the country’s real economic challenges.

The NBS has also reportedly been under immense pressure from the current administration to alter data in ways that paint a rosier picture of the country’s economic and security situation. A striking example of this came after the agency published a damning report on Nigeria’s worsening security challenges. The report led to the head of the NBS being summoned by the Nigerian secret service, raising concerns about political interference in the agency’s operations.

Shortly after, the NBS claimed its website had been hacked—a development many saw as an attempt to deflect attention from the controversy surrounding its findings. The website has remained inaccessible for months, further eroding public confidence in the agency’s transparency.

Against this backdrop, the NBS faces a growing trust deficit among Nigerians. The agency’s past controversies, coupled with suspicions of political influence, have cast a shadow over its latest initiatives.