By Business Desk
LAGOS — Plans by FBN Holdings Plc (FBN HoldCo) to erect a new headquarters in Eko Atlantic, alongside a staggering ₦185 billion spent on advertising and an unexplained ₦809.4 billion in “other operating expenses,” have ignited public anger and intensified calls for sanctions against the bank’s leadership.
In a year when the group plunged into a ₦407.8 billion loss, critics say the spending reflects not just poor judgment but a culture of impunity at the highest levels of management and the board.
“This is not mismanagement. This is recklessness on a grand scale,” a Lagos-based financial analyst said. “You cannot be destroying shareholder value while simultaneously funding prestige real estate, aggressive advertising, and opaque expense lines. That crosses into negligence.”
The controversial figures were revealed in the bank’s unaudited 2025 financial results, which analysts describe as one of the most troubling disclosures in Nigeria’s banking sector in recent years.
A Financial Collapse Years in the Making
At the core of the crisis is a ₦748.1 billion impairment charge—widely seen as evidence of years of irresponsible lending and weak risk controls. Analysts argue that such losses are never sudden but reflect a long history of poor credit decisions that went unchecked.
“This is a systemic failure,” said another market observer. “From loan origination to board oversight, every layer failed repeatedly—and no one acted.”
The bank also recorded an operating loss of ₦337.5 billion, reinforcing concerns that its core business has been severely compromised.
Spending Without Accountability
Beyond credit losses, what has drawn the sharpest criticism is the scale and nature of the bank’s expenditures.
The ₦809.4 billion classified as “other operating expenses”—a nearly 600 percent increase—has been described as a “black hole” demanding immediate forensic investigation. Analysts warn that such a figure, without detailed disclosure, raises the risk of hidden write-offs, questionable transactions, or governance breaches.
Equally controversial is the ₦185 billion spent on advertising and corporate promotions. Critics argue that a legacy institution like First Bank does not suffer from brand invisibility, making such spending appear wasteful and unjustifiable in a loss-making year.
Personnel costs also surged to ₦385.9 billion, nearly four times the prior year, further fueling accusations that management insulated itself while shareholders bore the brunt of the collapse.
“This is a complete breakdown of accountability,” one investor said. “Management is being rewarded while investors are being wiped out.”
Audit, Oversight Failures and Regulatory Questions
The results have also raised uncomfortable questions about the role of auditors and regulators. Despite the scale of deterioration, the accounts received sign-off—prompting concerns that warning signs were either missed or ignored.
Market watchers point to practices such as delayed impairment recognition and optimistic asset valuations as possible contributors to the sudden crystallisation of losses.
Calls for Sanctions and Leadership Overhaul
In the wake of the disclosures, pressure is mounting for decisive regulatory intervention.
Stakeholders are now calling for:
Immediate disciplinary action against key members of management involved in credit approvals and financial reporting
Sanctions against board members for failure of oversight and breach of fiduciary duty
A full independent forensic audit of the bank’s loan book and expense lines
Possible removal and replacement of senior executives and non-performing directors
“This cannot end with statements and excuses,” a shareholder advocate said. “There must be consequences. Without accountability, this cycle will repeat.”
Erosion of Trust and Investor Confidence
For many investors, the episode reinforces a long-standing pattern of weak governance and poor treatment of minority shareholders. Losses have been socialised, while decision-makers appear insulated from the consequences.
The proposed Eko Atlantic headquarters has become a symbol of that disconnect—seen by critics as rewarding failure rather than restoring discipline.
“You do not build monuments when your balance sheet is bleeding,” an analyst remarked. “You fix the institution first.”
An Institution at a Crossroads
While some investors may choose to hold their positions in hopes of a turnaround, confidence in the bank’s leadership has been severely shaken.
What happens next will likely depend not just on financial recovery plans, but on whether regulators are willing to act decisively—and whether those responsible are held to account.
For now, FBN HoldCo’s latest results stand as a stark warning of what can happen when oversight fails, discipline erodes, and leadership operates without consequence.
