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  • Feature: Adeduntan Sustains His Winning Streak, Pioneers Leadership Excellence in Banking

    Feature: Adeduntan Sustains His Winning Streak, Pioneers Leadership Excellence in Banking

    Oluchi Chibuzor highlights the recent special recognition and honour bestowed on the Managing Director/Chief Executive Officer of First Bank Nigeria Limited by Cranfield University

    Since his appointment as Managing Director/CEO of First Bank of Nigeria Limited in 2016, Dr. Adesola Adeduntan has completely transformed the financial institution and has made it attractive to every strata of the society.

    From an institution that used to be perceived as an old-generation bank, FirstBank is now a darling to all as it leverages the latest digital tools to meet its customers’ needs.

    Also, under Adeduntan’s leadership, the 128-year-old bank has made huge contributions to national development, thereby stimulating development, setting standards and motivating excellent output across sectors.

    Clearly, these contributions to national development were what endeared Adeduntan to President Muhammadu Buhari who recently saluted him on his recognition by Cranfield University, UK, one of the most prestigious citadels of learning in Europe. Adeduntan will on Wednesday, June 22, be conferred with Doctor of Science, Honoris Causa and he would be delivering an address to the graduating class of the university. This feat, the president in a statement by his Special Adviser (Media and Publicity), Femi Adesina, described as, “another testament to the fact that Nigeria is blessed with the brightest and the best in all areas of human endeavor.”

    Buhari lauded Adeduntan for being a role model to the younger generation, showing that hard work pays, and with resourcefulness and doggedness, great heights are achievable.

    Adeduntan holds a Doctor of Veterinary Medicine from the University of Ibadan, a Master’s in Business Administration from Cranfield University, and is a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN), as well as the Chartered Institute of Bankers of Nigeria (CIBN).

    The president sent best wishes to Adeduntan and family as he hoisted Nigeria’s flag proudly to receive an honor Cranfield University said was in recognition of his outstanding contribution to business.

    Incidentally, Buhari’s commendation came on the day the bank successfully held its AGM which showed a stellar performance in its financials, a transformational result that put the bank on course to reclaiming its leadership position of the financial sector.

    Adeduntan has a distinguished career in finance having held senior positions at Citibank Nigeria, KPMG and Arthur Andersen Nigeria. He studied at Cranfield University as a British Chevening Scholar, achieving an MBA in 2005.

    Commenting on the honour by Cranfield University, the FirstBank boss said: “I am extremely humbled and most grateful to the university for this recognition. My time at Cranfield served as a catalyst for my professional and personal development propelling me to the leadership position I occupy today.

    “I am a firm believer in talent management, being vital to further accelerate Africa’s growth to enable it to benefit from its demographic dividend and the opportunities therein. I look forward to sharing my experiences with the students on the universal applicability of the skills the Cranfield MBA provides to positively impact the world.”

    On his part, the Chief Executive and Vice-Chancellor of Cranfield University, Professor Karen Holford CBE FREng also congratulated Adeduntan, saying: “It is an honour to welcome Dr. Adeduntan back to Cranfield to recognise all his professional achievements in this way. His own experience at Cranfield University has propelled his career forward and this serves as a true inspiration for our graduates both this year and in the future.”

    Indeed, Adeduntan is an accomplished professional with distinctive international and domestic experience in commercial and investment banking, development finance, audit, and consulting; a philanthropist and leader with keen interest in providing platforms for the development of other young leaders.

    The FirstBank Group, the commercial banking arm of FBN Holdings Plc, which he heads is made up of First Bank of Nigeria and subsidiaries including FBNBank UK, FBNBank DRC, FBNBank Ghana, FBNBank Senegal, FBNBank Guinea, FBNBank Gambia, FBNBank Sierra Leone and First Pension Custodian as well as Representative Offices in France and China.

    Adeduntan is overseeing one of the most extensive transformation programmes in sub-Saharan African financial services industry, with the goal to reposition FirstBank Group to market pre-eminence.

    He is leading FirstBank Group on the journey to win the most significant emerging business opportunities in the financial services industry through the development and execution of a digital-led strategy that has established FirstBank as the dominant player in digital banking.

    FirstBank Group’s transformation programme, under the leadership of Adeduntan has enabled the bank to grow customer accounts from about 10 million in 2015 to over 36 million (including digital wallets), become the second largest issuer of cards in Africa with over 11.8 million issued cards, onboard over 18.6 million active customers on FirstBank’s digital banking platforms, and initiate and grow the most expansive bank-led Agent Banking Network in Africa with over 170,000 agents.

    His career in banking and finance, spanning almost three decades, has earned him various recognitions and awards including Forbes Best of Africa – Outstanding Leader in Africa, Distinguished Alumnus Award by both the Cranfield University’s  School of Management and the University of Ibadan, African Banking Personality of the Year, African Banker of the Year Award; Banking Icon of the Decade by the Sun Newspapers and induction into the African Leadership Magazine (ALM) Hall of Fame, Honorary Citizenship of the State of Georgia and Congressional Commendation Award from the Georgia Senate – USA, Bank CEO of the Year by the AES Excellence Club and several other awards.

    He has attended various executive and leadership programmes at Harvard Business School (USA), Wharton School (USA), London Business School (UK), IESE (Spain), University of Oxford (UK), University of Cambridge (UK), CEIBS (China) and INSEAD (France).

    Adeduntan’s leadership drive also reflected in First Bank Nigeria Limited’s recently released full year 2021 financial statement. The results clearly showed the strength and resilience of the iconic African elephant as well as the financial institution’s leadership in the industry. The impressive results were a reflection of the robust strength and growth of the iconic African elephant, showing that the bank has taken its rightful position among the industry leaders.

    In addition, it showed the level of work the current board, management and staff of the bank have put in to turn the tide in the 128 years old institution with entrenched corporate governance.

    The full-year 2021 performance by the bank represented a shift in the financial institution’s performance trajectory and was made possible through its undeterred commitment in pursuing its transformational agenda; cutting across customer-led innovation, building a digitalised bank, culture change, reinventing the bank’s workplace and safeguarding its assets for the digital age.

    For the first time, FirstBank Group posted the best result in more than a decade history of the bank by crossing the N100 billion profit line. Specifically, in the full year 2021 financial statement, the FirstBank Group reported a 73.9 percent growth in its profit after tax to N117.8 billion, as against the N67.8 billion recorded as of December 2020, just as its profit before tax stood at N130.9 billion, which was a significant rise by 77.9 percent year-on-year, as against the N73.6 billion it was as of December 2020.

    FirstBank’s gross earnings also increased by 30.3 percent to N716.8 billion in 2021, up from N550.3 billion it was as of December 2020. Also, it recorded a non-interest income of N342.2 billion in the year under review, which was 106.4 percent higher than the N165.8 billion recorded as of December 2020. As a result of years of strategic restructuring of its balance sheet and operations, its gross earnings also moved northwards by 30.3 percent, and its total assets was up 15.9 percent to N8.5 trillion as of the end of 2021, as against the N7.4 trillion recorded by the previous year, just as its customer deposits also climbed by 19.5 percent to N5.6 trillion, up from the N4.7 trillion recorded the previous year. The bank’s customer loans and advances also improved by 28 percent to N2.8 trillion in the year under review, up from N2.2 trillion the previous year.

    FirstBank has shown innovation, resilience and commitment to growth by significantly reducing its non-performing loans (NPL) from 25% in 2016 to an acceptable level of 6.1% in 2021.

    To demonstrate that the bank’s performance in 2021 was not a fluke, the Bank equally performed excellently well in Q1 2022. FirstBank recorded 32 percent increase in gross earnings to N180bn in Q1’22 from N136.6bn in Q1’21. Profit after tax was up 108% to N32.4 billion (Q1’22) relative to N15.6 billion (Q1’21). This impressive performance is hinged on a robust loan portfolio, effective cost structure and increased digital services.

    FirstBank recorded the highest decline in its cost-to-income ratio in Q1 2022, dropping from 79.5% recorded in Q1 2021 to 67.03% amongst tier-1 Banks in the review period.  

    With FirstBank under Adeduntan, the safety of customers and the security of their transactions come first. This has ensured the bank keeps the trust of Nigerians gained over the many years of its enduring legacy of safety and security.

    The bank also delivers unique and bespoke financial services solutions across all customer segments underpinned by its commitment to innovation and the customer experience. It also leverages its strong investment banking capabilities to support clients in defining and executing innovative debt solutions as well as offer strategic advice at the highest level, arrange tailor-made financing structures, manage risk and ultimately help clients to realise their aspirations

    Since its establishment in 1894, FirstBank has consistently built relationships with customers focusing on the fundamentals of good corporate governance, strong liquidity, optimised risk management and leadership.

    Over the years, the bank has led the financing of private investment in infrastructure development in the Nigerian economy by playing key roles in the federal government’s privatisation and commercialisation schemes.

    With its global reach, FirstBank provides prospective investors wishing to explore the vast business opportunities that are available in Nigeria, an internationally competitive world-class brand and a credible financial partner.

    It is expected that the leadership excellence and recognitions accorded to Adeduntan would continue to reflect positively on the FirstBank brand and fundamentals of the bank so that the elephant will continue to stand ‘gidigba.’

  • Feature: Shift Towards Domestic Tourism a Game Changer in Post-COVID-19 Recovery

    Feature: Shift Towards Domestic Tourism a Game Changer in Post-COVID-19 Recovery

    By Wayne Godwin

    For decades, tourism has remained a major contributor to the GDP of African economies. In 2019, the industry accounted for about seven percent of Africa’s GDP and contributed $169 billion to its economy—about the size of Côte d’Ivoire’s and Kenya’s combined GDP. But the advent of the Covid-19 pandemic changed all that. In July 2020, the African Union estimated that Africa lost nearly $55 billion in travel and tourism revenues and two million jobs in only the first three months of the pandemic. The International Monetary Fund (IMF) predicted that real GDP among African countries dependent on tourism shrunk by 12 percent in 2020.

    However, as COVID-19 restrictions ease, tapping domestic tourism demand has offered the sector some respite, as a growing middle class and young population show more interest in domestic tourism.

    The International Finance Corporation (IFC) says that much of the world has had the advantage of relying on captive domestic and regional audiences. But in Africa, domestic tourism has been overlooked for a long time. The sector needs to be oriented towards more diversified markets so that there is greater resilience in future.

    According to the World Travel & Tourism Council (WTTC), domestic tourism accounted for 55 per cent of travel and tourism spending in Africa in 2019, below the contribution of local tourism in North America (83 per cent), Europe (64 per cent) and Asia-Pacific (74 per cent). Domestic tourism accounted for 73 per cent of the total global tourism spending in 2017.

    Africa’s growing middle class and population of young travellers hungry for adventure, and the recently launched African Continental Free Trade Area (AfCFTA), the world’s largest free trade area by the number of participating countries, are among the pillars seen supporting the future growth of domestic and regional tourism in the continent.

    Whereas international bookings are a higher value in terms of revenue, the domestic market is more resilient. This scenario, therefore, calls for a rethink of strategy, especially in terms of building a domestic client base to match or even exceed the international base.

    To give an indication of the likely long-term shifts, data from the UN World Tourism Organisation (UNWTO) suggests that, by 2024, international leisure travel will be 10 percent above 2019 levels, but domestic leisure travel will be 30 percent up. By contrast, international business travel will still be down 15 percent, with domestic business travel 15 percent up.

    And according to OECD’s Tourism policy response to COVID-19, domestic tourism, which accounts for around 75 percent of the tourism economy in OECD countries, is expected to recover more quickly. It offers the main chance for driving recovery, particularly in countries, regions and cities where the sector supports many jobs and businesses.

    But a shift to domestic tourism requires capacity-building for tourism service providers on leveraging digital technologies for product development and marketing. There is also a need to enhance professional standards for tour service providers, including tour operators and tour guides. Equally, there is a need to build in sustainability into the recovery process – sustainable environmental, social, and financial practices; diversification of the domestic tourism products, and sustained domestic and regional tourism campaigns.

    Travel costs also need to be reduced as this has been a source of complaint by most domestic tourists. Alongside this, the construction of affordable hotels) could go a long way in increasing affordability to local tourists. The hospitality sector in Africa needs to embrace this shift, with hotels designed for this local market.

    Most parts of Africa remain amongst the most expensive countries to develop hotels. Innovative technology and flexibility around brand standards will be critical to driving down costs, as will relaxation of import duties and more options around development professionals and contractors. Covid-19 has certainly brought some positive changes in this regard, hotel brands are realizing the need for greater flexibility, but more needs to be done in gearing the sector for the huge opportunity that domestic tourism will bring.

    Wayne was a Senior Consultant at Pam Golding Tourism & Hospitality Consulting, and an Analyst at Hospitality Property Fund. Wayne Godwin joined JLL in 2015. Wayne served as Associate and Vice President for JLL. Wayne Godwin is currently Head of East Africa and Indian Ocean at JLL South Africa. Wayne Godwin has a Bachelor of Arts in Tourism Development from the University of Johannesburg in 2008 and a Master of Science in Property from the University of Cape Town in 2016.

  • Feature: How ASAP is Preventing Drug Use Among Secondary School Students

    Unplugged trainers in Rivers state

    Substance abuse continues to be a challenge that a lot of societies are battling and has become a global public health concern. Despite the horror stories of illnesses and deaths associated with substance abuse, the menace continues to prevail, especially among adolescents and youths. In Nigeria today, it is not uncommon to see adolescents engaging in the abuse of substances like alcohol cannabis, cocaine, heroin and other illicit drugs.

    The Nigerian Government and the National Drug Law Enforcement Agency (NDLEA), have tried to stem the tide in the country through policies and initiatives. International organisations, as well as private organisations in Nigeria, have also joined forces with the government in proffering sustainable solutions to the problem. 

    Recently, MTN Foundation partnered with the United Nations Office on Drug and Crimes (UNODC) and National Drug Law Enforcement Agency (NDLEA) to train and equip teachers with instruments to work on social influences, life skills and substance prevention among their students. The training programme tagged ‘Unplugged’ was targeted at secondary school teachers in Oyo, Rivers and Kano States.

    The training sessions were interactive and included physical, mental and social exercises and experiments by the teachers. One could feel the excitement among the teachers as they actively engaged in the exercises and practised the experiments given to them by the trainers.

    Speaking on her experience during the training, Oyinloye Oyindamola, a teacher at Wesley College of Science, Oyo State, said the training has been a mind-shifting experience, and in the three days of the training, she has seen areas that will help her in better interacting with her students.

    “I was sceptical when I heard about attending the training, I thought it was one of those regular training we have been doing in the past that will bore you the entire day, but this was different. It was fun, engaging and impactful and I can honestly say that I’ve had a mind shift. Majorly, I have also learnt skills to help my students as we work together to fight substance abuse,” she said.

    Also speaking on the lessons gained from the training, Owuakpo S. Owuakpo, a teacher at Government Comprehensive High School, Rivers State, said that the training was a valuable experience where he gained new skills and knowledge.

    “The training was an eye-opener for me, and I believe if it is introduced in every school curriculum it will greatly effect change in the society. We are about to launch the curriculum in my school, and we have spoken with students and teachers. Everyone is excited and gingered to start this journey of fighting substance abuse,” he said. 

    The Unplugged training is part of the MTN Foundation’s Anti-Substance Abuse Programme (ASAP), an initiative to fight against and curb substance abuse amongst youths in our society.

  • Feature: The Expected Reactions of Nigeria’s next President to Owo Massacre

    Feature: The Expected Reactions of Nigeria’s next President to Owo Massacre

    by Ayo Akinfe

    Whoever becomes president must react to the Owo massacre by passing a law that ensures security votes are paid directly to police commissioners

    [1] Across Nigeria today, insecurity is a booming industry in which private armies of robbers, kidnappers, terrorists, hoodlums, etc, have taken over the country. So lucrative is this trade that it is the fastest growing sector of the economy

    [2] One thing I find particularly frightening is the ethnic dimension of this scourge. Traditionally, armed robbery in Nigeria was multi-ethnic and equal opportunity but this recent pandemic is more or less wholly Fulani as the perpetrators only speak Fulfude. It is like they will not allow you to join their gang unless you are Fulani

    [3] What I struggle to get my head round is how did these guys manage to open camps all over Nigeria where they train their members and build hostage detention centres without anybody noticing. This industry actually started off as a localised business in the southeast but it appears the Fulani have now taken over and turned it into a nationwide phenomenon

    [4] When Evans and his gang were in business, they were a wholly Igbo outfit, kidnapping Igbo victims across the southeast, so it did not have any ethnic dimension to it. We dismissed it as an “Igbo problem.” Today, we are paying the price for this negligence

    [5] Last weekend, we saw the full horror of this new industry when it struck Owo in Ondo State. The impunity of these hoodlums is simply breathtaking

    [6] One thing I do not get is why nobody is tracking the funds that kidnappers receive online. At some stage, the kidnappers have to withdraw the money from the bank, which is where the police should be waiting for them. As things stand, the kidnappers are free to do as they please with no hindrance whatsoever

    [7] Every state in Nigeria has a police commissioner with men under his command. Is there anything stopping them raiding these camps, closing down these bank accounts and policing these motorways to end this scourge?

    [8] Does President Buhari realise that it is only a matter of time before this sparks another major ethnic crisis? Just imagine what will happen if Ipob youths storm a Fulani camp in the southeast. They will cleanse the place of these criminals and before you know it, there will be reprisals in northern Nigeria and alas, within a week, we will have a full blown ethnic cleansing catastrophe on our hands

    [9] Over the long term, what bothers me most is that we have set an ugly precedent of one ethnic group being able to act with impunity and in defiance of the law simply because the president is one of theirs. This ugly trend can set off a chain reaction with other ethnic groups following suit in the future. It could also lead to the Fulani reluctant to ever allow anyone who is not one of theirs become president. Their leaders will be under pressure not to risk being “in opposition.”

    [10] President Buhari joked with fire on this one, similar to how Nero was dancing when Rome was burning. He could have easily remedied the situation by paying police commissioners the security vote currently given to governors. He could then have distanced himself from any pan-Fulani agenda and made it clear that no ethnic group is above the law. His refusal to act built up a keg of gunpowder that could soon explode in our collective faces. I just hope his successor acts immediately.

  • Feature- Squad by GTCO: Reshaping the Nigerian Payment Space

    Feature- Squad by GTCO: Reshaping the Nigerian Payment Space

    Fragmentation in the Nigerian payment space has served more as a constraint than an enabler; Squad by GTCO positions to lead with innovation and efficiency

    Without a doubt, digital payment is the next growth frontier for financial services. Amongst other extenuating factors, growing digitalisation, mobile penetration, and evolving consumer behaviour have accelerated the shift towards cashless thereby creating entirely new business models and solutions built around payments.

    Given the key role digitalisation plays in the financial lives of many people today, electronic payments are at the core of the payment ecosystem. As is the case with all things economic, Nigeria remains a most attractive market. Over the past years, we have seen largely foreign investors make a play to participate in the Nigerian technology and financial sector with considerable investments in FINTECH companies creating so-called “unicorns” of these establishments. This is helping to generate needed cohesion within the payment landscape and putting it at the forefront of innovation. The gains from the payment sector will serve to spur the global remittance industry as well as enhance financial inclusion. Increasingly, it is expected that newer, more efficient form factors and product offerings will look to enhance the digital payment experience for consumers and merchants alike.

    Despite this trend, a more critical assessment of the payment industry shows that existing FINTECHs are merely scratching the surface of the payment landscape and its massive potential for financial inclusion. If anything, the fragmentation of the merchant-facing payments value chain has served to dampen the massive prospects of this sector. Available research points to the fact that asides from security and privacy concerns, a major challenge presently facing the mobile payment ecosystem is the high level of market fragmentation as seen in the multiplicity of platforms and the different service configurations on offer. With consumer adoption stalling, mobile payments still represent a small portion of total consumer payments. The complexities around payments and the rapid evolution of merchant services require a re-evaluation of business focus and value propositions.

    In comes Squad by GTCO

    It is against this backdrop that the launch of Squad, a full-service digital payment company conceived by Guaranty Trust Holding Company Plc (GTCO Plc), is a most welcome development. For one thing, GTCO Plc is renowned for its strong corporate governance culture, bias for innovation and superior financial performance. Few financial institutions in Nigeria, and indeed Africa, can boast of GTCO’s impressive credentials. From its humble beginnings in 1990 as a pureplay banking institution, the company has morphed into a fully-fledged financial services powerhouse in a little over three decades. Underpinning this remarkably successful transformation is GTCO’s rich history of firsts: from pioneering industry-wide innovations in Online/Mobile Banking, USSD Banking, Instant Card issuance, and Fingerprint Banking to creating free business platforms to support small and medium-sized business owners in the food and fashion industries and revolutionising consumer lending with QuickCredit, GTCO has differentiated itself from other financial institutions by a mile.

    With the launch of Squad, GTCO Plc aims to deploy its trademark efficient operations and innovative capacity to drive the adoption in payment services and enhance financial inclusion. With the overarching goal to be the most efficient off-line and online merchant acquiring platform in all of Africa, Squad is well-positioned to serve four important enterprise verticals namely: micro- businesses (kiosks), online sellers, digital natives, and corporates.

    Reinventing the in-store payment experience, no longer limited to POS

    Squad’s top offerings will include a payment gateway and the Soft POS. While most are familiar with the functionalities of payment gateways, the Soft POS solution is as cutting-edge as it is simple-to-use.

    The Soft POS is a multi form-factor white-label solution that enables a smartphone to function as a merchant acceptance device. Essentially, the Soft POS allows any mobile phone with the NFC feature to be used as a point-of-sale. While this service is enjoying growing acceptance and use in other parts of the world like America, Europe, and Asia. Squad will be amongst the very first financial payments service in Africa to introduce this unique payment functionality. Merchants who have traditionally accepted cash payments or struggled with the sub-optimal nature of physical POS terminals, now have a simpler and more secure way to manage their transactions.

    The solution effectively addresses the needs of micro and small businesses as it provides a cost-efficient card acceptance solution as well as complete visibility of merchant transactions making reconciliation and decision making faster and easier. With Soft POS, the consumer experience is elevated as it facilitates line-busting to streamline check out queues and eliminates friction. How does the Soft POS work? Quite simple and fast. Sellers can start accepting contactless payments in just few minutes by downloading the app from Google Play Store and completing the registration process.

    Squad would also be offering other high-impact, value-adding services to merchants and corporates in various sectors of the economy to enhance their business operations and propel wide-scale growth.  

    What makes Squad unique?

    As the name suggests, Squad denotes the power of a TEAM. The team at Squad is peopled by young, dynamic professionals who have imbibed GTCO Plc’s culture of innovation and efficiency to power next-generation payment solutions. If GTCO’s track-record of trailblazing achievements is anything to go by, Squad will in no time set the marker for merchant and customer fulfillment in payments. Squad is backed by a successful ‘Proudly African, Truly International” brand in GTCO Plc and is run by well-trained, digital-savvy minds with a keen understanding of market needs and trends. This is markedly different from what currently obtains where one or two founders set up and struggle to balance vision with ambition, and ultimately, falter off-course.

    With no less a visionary than Segun Agbaje leading the Holding Company, we can be sure that values like transparency and integrity, which have become synonymous with the Guaranty Trust brand, will come on to define the payment space resulting in more clarity of purpose and extensive trust in the reliability of digital solutions. In a recent forum to review GTCO Plc’s prior year financial statements and projections for the 2022 financial year, Mr. Agbaje pledged to disclose the performance of the Group’s new businesses on a quarterly basis. This is a rarity in today’s clime. It is exactly what one would expect from a brand looking to champion Africa’s growth as it serves to enhance competitiveness and value creation for all stakeholders. You would recall that the Group recently started Guaranty Trust Fund Managers Ltd and Guaranty Trust Pension Managers Ltd to compete in the Asset Management and Pension sectors. These, alongside the new payment company, will certainly add to the viability of GTCO Plc long-term.

    The future of payments is digital 

    To reference one of Segun Agbaje’s seminal submissions, ‘the future of payments is digital.’ The launch of Squad is timeous if Nigeria, and indeed Africa, must ride the wave of continued cash displacement and go on to drive digital payment adoption and financial inclusion. And, if there is a question of how to radically transform Africa’s payment space, Squad is the answer.

    Culled from Proshare

  • Feature: FirstBank – Reaping the Benefits of a Solid Legacy

    Feature: FirstBank – Reaping the Benefits of a Solid Legacy

    FirstBank delighted investors with a pleasant surprise when it announced stellar results confirming that its turnaround strategy pinned on the pillars of innovation, resilience and digging deep is working.

    Its profit after tax spiked 108% to N32.4billion on the back of massive loan recoveries and a sharply lower level of non-performing loans (6.1%). Its capital adequacy ratio (CAR) increased to 17.4%, giving it the much-needed buffers required to withstand financial shocks and turbulent headwinds in the coming quarters.

    FirstBank, one of a handful of banks that adopted the holding company structure, has been proven right as almost all the other tier-one competitors have emulated the model. As far as competition is concerned, FirstBank is fighting hard to recover lost grounds to the nimble fintechs, the highly capitalised and efficient telcos and their payment savings bank subsidiaries.

    Indeed, FirstBank is well equipped to fight amongst the sharks in this blood-soaked ocean.

     We expect to see FBN stock rise in the months ahead due to its massive undervaluation and its evident potential upside. We recommend the stock as a BUY.

    –  Financial Derivative Company

  • Feature- Nigeria should address crimes of colonialism at the Queen’s Platinum Jubilee

    Feature- Nigeria should address crimes of colonialism at the Queen’s Platinum Jubilee

    by Ayo Akinfe

    If the British want to be fair to Nigeria, they will user the opportunity of the Platinum Jubillee to address some of the heinous crimes of colonialism

    [1] First of all, how about paying compensation for the bloody 1897 Massacre of Benin. It was by far the most brutal slaughter of Nigerians during colonialism, followed by the sacking of the Sokoto Caliphate in 1905

    [2] For starters, Britain is a country well renown for its expertise in several sectors including tunnelling, coal mining and steel making for instance. During over 100 years of colonialism, did the British ever bring along a group of experts to help Nigeria in these industries?

    [3] The man known as the world’s father of tunnelling was a British engineer named John Norton-Griffiths. During World War One, he was the man who came up with the idea of digging tunnels beneath the German trenches, allowing the allied powers to get behind their lines and subsequently win the war.

    [4] After the war, Mr Norton-Griffith was awarded contracts to carry out major engineering projects in Africa and South America. These included work on the first 197km of the Benguela Railway in Angola between 1903 and 1908. His construction firm also took on a contract to carry out the heightening of Egypt’s Aswan Low Dam

    [4] His pioneering work was what led to the construction of the London Underground. His methods are still being used to this very day as the UK expands the network to build the Crossrail sector of London Underground. Lagos in particular desperately needs such skills as a city of 12m simply cannot survive without an urban underground network

    [5] In the area of coal mining too, Nigeria could benefit from British expertise. Just imagine what British coal miners could do if taken to Enugu

    [6] Do you know that Sheffield was at one time renown as the European steel capital? Yet, we have Ajaokuta rotting away and Britain has not even thought about bringing a team of steel engineers to revive the moribund facility

    [7] I also wonder why Britain is not urging Nigerian monarchs to merge their monarchies as Britain did. Do you know that half of the world’s monarchs are in Nigeria? This is a terrible drain on the public purse. Malaysia had a similar situation to us at independence but they decided to merge their monarchies and have just six. They now rotate the King of Malaysia title among them

    [8] With us having three tiers of government, traditional monarchs are just figure heads. They do not serve any official function and you have to ask yourselves is their any justification for having more than say – The Alaafin of Oyo, the Sultan of Sokoto, the Shehu of Borno, the Obi of Onitsha, the Obong of Calabar and the Oba of Benin

    [9] In Britain the amount the public spends on the royal family is being cut daily. I hope Queen Elizabeth tells the Nigerian monarchs that they need to fund their institutions themselves to free up government money for schools, roads, hospitals, clinics, etc

    [10] Britain created Nigeria and left her sitting on a keg of gunpowder. As far as I am concerned, the British have to take responsibility for a lot of the problems they created. President Buhari should have given Britain a minimum annual investment figure Nigeria requires each year. We have poverty, restlessness and violence in our land because of a lack of industrialisation and job creation. Britain should be obliged to address this by investing at least £1bn a year in Nigeria. Such investment by British firms should be tax deductible in London to encourage it!

  • Feature- Squad: The next generation payment solution for African merchants

    Feature- Squad: The next generation payment solution for African merchants

    When it comes to internet penetration and adoption of mobile payments, most African countries are still very much below the global average. Even where the internet penetration is improving, the mobile payments adoption rate is still low, meaning an overall lag. For instance, in Kenya where mobile payment adoption is the most on the continent, only about 23.1% of the internet users actually use mobile payment methods.

     So, even though the internet infrastructure allows business owners access to a wide market, mostly outside their location, sending and receiving payments with ease still remains a struggle for many. But this is only for businesses that are not taking advantage of Squad – the newly launched Integrated Payment Solution that is set to revolutionise digital payments in Africa.

    Squad is a payment service that is set to drive the future of mobile payments in the African Continent. If you have imagined an Africa where every payment is digital, it is an Africa where every business uses Squad. The features show that this might be the most online and offline payments option for merchants.

    Squad will be empowering businesses by taking care of their payment problems and helping to make every payment digital whether it is made online or offline. It features offline as well as online payment acquisition channels like the Payment Gateway and the Soft POS. If you are worried about getting or handling a POS, the software Point of Sale (Soft POS) allows merchants and vendors to accept payments directly on their phones or devices without the need for any additional software. And isn’t this what every merchant needs?

    Also, there are several value-added services like the bulk payment collection, automated reconciliation of offline and online payments, fraud prevention tools and instant settlement among others.

    There is a need to get on board the use of Squad considering the need to adopt more cashless based transactions in Africa, growing cases of transmittable diseases, tightened cash liquidity, insecurity amongst others.

    The best way to sum it is that Squad is the one-stop payment solution for every business in Africa. Squad is that single product that brings technology and user experience and satisfaction for a meet-and-greet. The features are designed for and targeted at micro and small business owners like Kiosk owners and petty traders, medium business owners like digital sellers, online vendors; Tech talents; and even big enterprises.

    It is interesting to note that the adoption of cashless-based transaction help businesses especially small and medium scale enterprises to increase their top line (revenue). According to a survey by Khatabook, about 45% of SMEs report a boost in sales after adopting mobile or digital payment services.

    Therefore, with Squad bringing in a solution that features ease, convenience, and security from fraud, businesses can jump on this train and improve their chances of success.

    It makes so much sense that such a product is coming from Guaranty Trust Holding Company Plc (GTCO). Indeed, if any brand has the relevant pieces to define new frontiers in payment and dominate the payments landscape in Africa, it is GTCO.

    The GTCO Squad behind Squad

    Guaranty Trust Holding Company Plc is a fully-fledged financial services group, on a mission to make financial services accessible to all Africans. GTCO Plc metamorphosed from Guaranty Trust Bank Ltd which has really been around since the 1990s, and now present in several African countries including Uganda, Ghana, Gambia, Sierra Leone, Rwanda and Kenya.

    In June 2011, Segun Agbaje took over as Chief Executive of the Bank and since then led the team to blaze a trail in innovation and efficiency. Within the space of a decade, Agbaje raised the Bank’s profit by N1.3 trillion and expanded the balance sheet by 12.07% on average annual growth. The assessment indices show positive growth for the financial institution not just in Nigeria, but in every African country where GTCO is present.

    Shareholder’s wealth has also seen a major boost during the period with total equity rising from N230.393 billion in 2011 to N814.395 billion in 2021, an average 13.46% growth per annum. Earnings per share also grew 15.45% on the cumulative average growth rate, from N1.69 per share outstanding in 2011 to N7.11 in 2020. Total assets grew by at least by 12.07% annually in the decade, from N1.598 billion in 2011 to N4.944 trillion in 2020.

    What we can all attest to is that the numbers don’t lie, and GTCO has a track record filled with numbers that demonstrate efficiency and profitability, even in the face of the harsh and challenging economy which crumbled several other businesses. Only a formidable leadership could have sustained such records.

    GTCO has always had a digital-first, customer-centric strategy that builds digital products and helps individuals and businesses thrive. Expectedly, the bank was the recipient of several awards at the Electronic Payment Incentive Scheme (EPIS) Efficiency Awards organized by the Central Bank of Nigeria (CBN) in conjunction with the Nigeria Inter-Bank Settlement System (NIBSS). The bank clinched 8 out of the 13 awards available for the banking industry at the 2019 EPIS Efficiency Awards including Best Customer Experience Award; Cashless Driver, Point of Sale (POS) Transactions; Real-Time Payments Transaction Efficiency; Cashless Driver, USSD Channel Champion among others.

    The Holding company is now home to several trusted brands that are driving innovation and creating viral product adoption, ensuring great experiences and growing valuable customer engagement. Squad is only the latest addition to this list.

    Culled from Nairametrics

  • Feature: Unutilized Constituency Projects littering the Okeho Landscape

    Feature: Unutilized Constituency Projects littering the Okeho Landscape

    …Sen. Hosea Ayoola and Gov. Seyi Makinde’s intervention can make the difference

    By Kayode Awojobi

    The constitutional responsibility and duty of a lawmaker is to make laws and sponsor bills that would have a meaningful impact on their constituents. They are also saddled with the responsibility of contributing meaningfully well to the growth and development of their various constituencies and this is the main reason why each lawmaker is entitled to constituency allowances, either at the local level, or state, or federal level. Although most times, these lawmakers often use these allowances for little or nothing for their constituency, they use the lion’s share of the money is useful to finance their ostentatious lifestyles. 

    A borehole at Gegun

    Okeho and her environs in Kajola Local Government of Oyo state, under Iseyin/Itesiwaju/Kajola/Iwajowa Federal Constituency of Oyo state and Oyo North Senatorial District, can be referred to as a haven for many unutilized constituency projects. With or without the commissioning of these projects, they are yet to be beneficial to the people of the community as they remain under lock and key. There has been no value addition to the community.

    The signpost of the Alaapa Primary Health Centre

    During the 7th Senate, 2011 to 2015, Senator Hosea Ayoola Agboola popularly known as Halleluyah, representing Oyo North Senatorial District in the Green Chamber. He was the Deputy Chief Whip and currently, the Head of the Oyo State Governor’s Advisory Council. At this time, Okeho was a beneficiary of 2 gigantic health centers, which were facilitated by the Igbojaiye-born politician. Initially, these particular projects brought so much joy to the people of Okeho and her environs. One of the health centers is at Alaapa Area of Okeho, along Olowo-Ata, while the second one at Isale Alubo, area of Okeho. 

    Entrance of the Isale-Alubo PHC

    Although these projects were completed,that of Alaapa was commissioned by the Senator himself, but after the commissioning of the project till now, no single patient had accessed medicare at these locations till date. As such, it is neither viable in terms of the provision of healthcare services nor employment for healthcare practitioners. Although, it cannot be ascertained if that of Isale-Alubo was commissioned but it has been completed, with a Mikano Generator in the hospital’s compound and other medical equipment lying fallow within the premises. These two beautiful edifices are now surrounded by bushes and inhabited by lizards and wall geckos. These two projects, after almost a decade, are just there, adding no value to anyone. It will be recalled that in 2020, there was an article on the deplorable state of the General Hospital, Okeho that has made residents of Okeho seek medicare in other areas of the state. There is an urgent need for the government and our political leaders to help our community by recruiting and putting these projects to use.

    The Isale-Alubo PHC with the Mikano Generator covered

    We hereby call on Governor Seyi Makinde to see these two healthcare facilities as low-hanging fruits for his administration to make the best out of the current situation, as Sen. Ayoola is the Head of the Governor’s Advisory Council (GAC). Equally, it will make the presence of the state government felt within the left few months of his first term in office. The yearning of the Okeho people is to feel the presence of his administration in our community.

    The two boreholes dug by Sen. Agboola and Hon. Supo Abiodun; the tank of one of the boreholes is missing while the other is still there

    Asides from these abandoned healthcare facilities, there is also a borehole sunk by Senator Hosea Agboola located around Gegun High School, Ayetoro-Oke. The borehole, from findings, has not given water to anybody since it was commissioned. Information gathered from the residents of the quarters, water never came out of the borehole for once.

    Similarly, in the same Gegun quarters, is another borehole facilitated by Hon. Supo Abiodun, who was then the lawmaker representing Iseyin/Itesiwaju/Kajola/Iwajowa Federal Constituency, between 2015-2019 in the Federal House of Representatives, Abuja. This particular project, amongst others facilitated by the honourable, is not beneficial to the community as well. 

    The Manual Borehole facilitated by Sen. Fatai Buhari

     Another project worthy of note is a manual borehole, facilitated by, Senator AbdulFatai Buhari, the current senator representing Oyo North Senatorial District, in the same Gegun, a few miles to Gegun High School, Ayetoro-Oke, despite completed, this project also amounts to nothing. These, amongst others, are gigantic projects, facilitated by our dear distinguished Senator. We’re grateful for finding us worthy of this project, but our communal desire is that these projects should be beneficial to the community upon completion.

    The newly constructed 40-bed hospital facilitated by Sen. Fatai Buhari

    On October 23, 2021, the current Senator, Sen. AbdulFatai Buhari, laid the foundation of a 40-bed hospital in partnership with the Office of the Senior Special Assistant to the President on Sustainable Development Goals (SDGs). This hospital is along Isemi-Ile Road, Okeho. Although this project has been completed in April 2022. However, it is yet to be equipped and commissioned. Our heart cry now is that this particular one shouldn’t turn into a shadow of itself like others, without having the desired impact on the constituents.

    It is important to state that our community has contributed immensely to the development of Oyo State and the nation at large. Many distinguished men and women, who had and are still diligently impacting the country have been made from here. If these facilities are put to use, there would be an end to rural-urban migration and the community would thrive. With the support of the Royal father, the Council of Chiefs, erudite scholars and accomplished academics, private sector players, artisans, and residents of the community, there is an assurance that all these facilities would be properly and judiciously put to use for the overall development of the state.

    Kayode Awojobi is a broadcast journalist and public affairs analyst. He writes from Okeho and can be reached on 0815 747 9822

  • Feature- NCC: A Case-Study of Strategic Communications, Engagement and Education of the Citizenry

    Feature- NCC: A Case-Study of Strategic Communications, Engagement and Education of the Citizenry

    By Olutayo Irantiola

    The Nigerian Communications Commission, NCC, has gone beyond being a typical government agency to becoming a case study on strategic engagement and education of the population. The agency has made significant progress in its strides to ensure that everyone within the country knows their digital rights and they are well informed. Leaving no strata of the society behind, NCC has created a series of platforms wherein people are engaged at their level across the country.

    With the creation of the Consumer Affairs Bureau in September 2001, the rate at which people have been informed has been unprecedented. Some avenues through which people have been educated include the face-to-face events; digital, print, and electronic channels-

    The Telecom Consumer Parliament (TCP) is NCC’s flagship forum for in-depth engagement with service providers to discuss issues of contemporary interest affecting consumers of telecom services in the country. TCP aims to shape the regulatory policies of the Commission and had equally led to the development of several regulations that are benefiting consumers and other stakeholders in the industry. TCP had also become and remains a credible and useful platform for consumers, Telecom Operators, and the Regulator to reflect on and proffer solutions to pertinent industry issues. The agency continued to be innovative in its approach when the pandemic struck, by organizing the 1st virtual edition of the Telecom Consumer Parliament where stakeholders were educated in August 2020.

    Also, with the intent of not leaving anyone out of the educative series, the commission equally created another sector-based engagement forum tagged, “Telecom Consumer Conversations”. The TCC is a matrix of the Year for the Nigerian Telecom Consumer designed by the NCC to expand the frontiers of engagement with telecom consumers in all nooks and crannies of Nigeria, and the NCC Zonal Offices are the key drivers of the campaign. This particular educative series is targeted at various sectoral groups such as Professionals; Youth Corps Members; University Communities; Market and Village Squares. With this in mind, everyone is engaged at a level that is within their intellectual capacity. Recently, the Village Square Conversations took place in Abeokuta, Ogun State.

    NCC has also shown her deftness in using broadcast channels through which they reach out to various stakeholders. The commission has started the Telecom Consumer Town Hall on Radio (TCTHR), a radio-based interactive consumer outreach programme of the commission, broadcast under the auspices of NCC Digital Signature, the commission’s flagship radio programme. During TCTHR, there would be NCC officials and representatives of MNOs in attendance in the studio to educate listeners.

    As the month of May 2022 was coming to a close, another NCC Digital Signature Programme was announced. The TV show will be televised every Thursday on NTA International, at 7:30 pm. With this show, there is no way that anyone will stay oblivious of the strides of the commission in the country.

    According to a Statistica report, in a survey conducted in 2020, most of the households in Nigeria had a television. The majority of households owning a TV were located in urban Nigeria. In urban areas, 61.1 percent of the respondents owned a television, while around two percent declared that someone else in their households had one. Another report by SES, the leader in global content connectivity solutions, in its annual Satellite Monitor, noted that satellite TV reception was the choice for 11.8 million households in Nigeria in 2019. These figures would have increased and these statistics have made the NCC respond by creating another TV series tagged “Telecom Television Dialogue” where an executive of the commission speaks to Nigerians via television. This approach is very strategic to reach the various ends of the country through television programming.

    One cannot be surprised at the abundance of international leadership opportunities, awards, accolades, and assignments given to the helmsman of NCC, Prof Umar Danbatta, and his team. This is premised on the various exploits of the commission and many telecoms regulators across Africa have been coming to take lessons from Nigeria.

    The use of new media for NCC is unprecedented for a regulator in Nigeria. The updates of news to various media partners- print and online are massive; they have also adopted social media as their home. With these updates, they have gained massive followership and they can use the various social media channels to attract Nigerian netizens. Through their social media handles, they have been able to host Twitter live chat sessions- Telecom & the Citizen; disseminate timely information & education via NCC’s social media handle to their teeming consumers. The commission also produces Skits, digital banners, and audio-visuals for consumer education and awareness periodically.

    Also, the commission’s adoption of podcasting is novel. Podcasting is a growing concern in Nigeria and the agency has explored this digital channel at reaching its customers. They have really shown their digital cum technical strength in using new media.

    NCC has become a government agency that can run competitively with any private sector player in the strategic deployment of communications tactics. This, in turn, has endeared the organization to make Nigerians. We need more of such agencies, commissions, and ministries to change societal perception and also appreciate the effort that is being put into the overall development of Nigeria.

    Olutayo IRANTIOLA is a Lagos based PR Consultant, Public Affairs Analyst, Citizen Journalist and Creative Writer. His blogs on www.peodavies.com. He can be reached via peodaviescomms@gmail.com and on 08052048143

  • Feature: Seyi Makinde and Mantra of 4+4

    Feature: Seyi Makinde and Mantra of 4+4

    by Kayode Awojobi

    “I am here as your governor to serve you. I will work tirelessly and take responsibility for the workings of every sector. While I will delegate effectively, the buck will stop with me. I want you to hold me accountable and I will also hold you accountable as we work as partners to bring Oyo State to glory.”

    -Engr. Seyi Makinde inaugural speech,

    May 29, 2019

    Indeed, the Governor of Oyo State, Engr Oluwaseyi Abiodun Makinde, after 3 years in office is still standing by his words and the people of your state can attest to this fact, as it is visible to the blind and very audible to the deaf. His government has made tremendous achievements, without mincing words, “Ají ṣe bí Òyó làárí, Òyó ò kí ṣe bí baba ẹnìkan.” Oyo leads and others imitate.

    Just as I stated in my previous article published in 2020, titled “Seyi Makinde: The Fast-rising Political Party in Nigeria.” Many might say he’s destined to be the Governor, others may refer to his emergence as luck, but I personally believe Engr Seyi Makinde is only passionate about his ambition and this finally led to his occupation of the Government House, Agodi, Ibadan.” Governor Makinde has proven himself beyond imagination that he came fully ready to serve the people, with good plans and bring glory to the state, as it is known for.

    3 years after his emergence as the people’s governor, one could imagine various landmark projects that were initiated and completed by his administration and previous administrations. I must say that it takes a hardworking and courageous person to take these giant steps while the entire citizenry are awestruck by these noble deeds.

    It is not a gainsaying if I stated here that, GSM as popularly referred to, has achieved greater success in almost all the sectors than the last administration within three years. This administration is hinged on 4 pillars namely Education, Economy, Health and Security. These areas have received greater attention in the recent past and this has brought the expected results.

    Gone are the days when IGR of the state used to be crawling, educational institutions facing several crises, with multiple cases of dilapidated buildings in various public schools, shambled healthcare facilities and insecurity in the state. Just as the governor promised to reform the affected sectors, eyes could see and ears could hear, tremendous reformation, which has brought so much joy to the lives of the people.

    Both civil servants and retirees in the state are no longer treated with levity, neither is the health sector begging for repairs. Old roads that used to be death traps are now motorable while new road networks are being constructed across the state.

    Education has received rejuvenation, management and students of LAUTECH are now proud of their institution again. Security already wore a new outlook, trade and commerce in the state has been hugely enhanced. Agribusiness is now bubbling, transportation system has risen from its sickbed, and youths are not left unattended. Primary and secondary health facilities have changed throughout the state from mere room to consultation rooms.

    The Lekan Salami Sports Complex, Adamasingba is now a place to be proud of. While the “Light up Oyo” project has changed the narrative, as this particular project has brought electricity for the first time to areas that have never had electricity supply from time immemorial. Thousands of the citizens got employed by the state government, without getting connected with anyone in authority.

    There are lots of landmark achievements in the last 3 years of Governor Makinde’s administration, just as the Yoruba would say, aríse, laríkà, then I ask, taló sopé ko po ke?

    The people of Oyo state had not thought of experiencing good governance as this, but here we are today, with our smiling faces and hope for a better tomorrow, even though some are still aggrieved, Good governance? Maybe something meant for their personal gain. Omi tuntun, igba otun ni. Mr. Governor, you’ve had a great start, but the end is better thereof, but despite your good deeds, you’re still not loved by all and sundry in the state, but your style of governance had made you have more friends than enemies

    Dear, Engr Seyi Makinde, if one good term deserves another, you indeed deserve another good term to serve the people of Oyo State with your best, as a lot is still expected of you in all sectors. The people’s governor, as you mark your 3rd year in office, I want to remind you that, mathematically, 4+4=8

  • Feature: Excitement In Shareholders’ Camp as FirstBank sheds NPL Burden

    Feature: Excitement In Shareholders’ Camp as FirstBank sheds NPL Burden

    With a significant cut in its impairment charges (which translates into a clean loan book) in its 1Q, 2022 results, after it successfully brought down its non-performing loan to 6.1 percent in 2021 full year performance, analysts say the repeat of the impressive performance of FirstBank in the first quarter did not only show the consistency in its rebound, but that it demonstrated the fact that the recovery is real. 

    For the shareholders of the Nigerian banking behemoth, First Bank of Nigeria Limited, it is a season of celebration and a period to shower praises on the board and management of the bank for successfully working its way back into reckoning, after a long period of operational challenges mostly blamed on rising cases of non-performing loans.

    The shareholders, who joined other stakeholders of the bank and its parent company, FBN Holdings Plc., in appraising its first-quarter 2022 results made public last week, said it is a great relief that the organisation has put the issue of non-performing loans behind it.

    According to them, the outstanding results for the bank’s full-year 2021 is an appetiser to the first-quarter 2022 results and that the repeat of impressive results for the first quarter did not only show the consistency of its restructuring but that it demonstrated the fact that the recovery is real.

    SHAREHOLDERS’ ENDORSEMENT

    The founder and pioneer National Coordinator, Independent Shareholders Association, Sunny Nwosu, in an interview with THISDAY, at the weekend, said the management of FirstBank deserves praise for working the bank back to profitability and clean loan book.

    He believes the ability of the FBNHoldings, the parent company, to significantly cut the exposure to non-performing loans to 6.1 percent showed that the bank has shut the door against future delinquent debtors, a development he said will consolidate the bank.

    Nwosu said many of the shareholders were pleasantly surprised first, by the performance in the 2021 full results, saying the first quarter 2022 results came as a confirmation of the readiness of the bank to take its leadership position in the nation’s banking industry.

    “Considering all the provisions they had made in the past two years and for them to have come out clean shows it is not a bad result and for them to have agreed to pay 35 kobo dividend to shareholders, it is encouraging because most shareholders did not know the company was going to pay anything, especially with all the challenges going on in the economy.

    “We are indeed excited that they have been able to bring down non-performing loans, which means they will have more money to do business with and I’m quite sure they will be more careful this time when it comes to giving out loans,” Nwosu stated.

    He maintained that FirstBank can still return to the leadership position in the Nigerian banking industry, saying the current leadership should keep an eye on the business and encourage the staff with a good incentive to compete in the industry.

    1Q 2022 RESULTS

    Analysts said the bank has remained dazzling in virtually all its performance metrics, a development they attributed to the NPL improvements which restored investors’ confidence. And success with NPL means the quality of assets is bound to rise.

    An analysis of the bank performance gleaned from the group Q1, 2022 results showed that its exposure to bad loans has substantially reduced given the fact that the amount set aside as impairment charges has come down from N13.175 billion in the first quarter of 2021 to N8.75billion in 1Q 2022.

    In the period under review, First Bank of Nigeria Limited recorded gross earnings of N170.4 billion, up by 33 per cent as against N128.1billion in the previous year.  

    The bank’s net interest income was put at N72.9 billion, a 42.1 per cent from N51.3 billion generated in the same period of 2021, while non-interest income was N58.8 billion, up by 21.7 per cent from the 2021 figure.

    Profit After Tax for the first quarter of 2022 was N31billion, whereas N16.3 billion was the figure declared for 1Q, 2021. The bank declared total assets of N8.8 trillion, a 3.5 per cent rise from N8.5 trillion in the preceding year.

    To show the bank was in a serious business of lending, its customers’ loans and advances (net) totaled N2.999 trillion, up by 5.8 per cent, year-to-date as of December 2021, which was put at N2.835 trillion, while customers’ deposits were N5.9 trillion, as against N5.6 trillion in the first quarter of 2021, a 5.4 per cent increase.

    BUILDING CONFIDENCE IN OPERATION

    Analysts believed the recent turnaround and improvement in the Non-performing loans of First Bank of Nigeria Limited (FirstBank) have been a major boost in the bank’s quest to reinforce its leadership in the financial services industry in Nigeria.

    For instance, it has been observed that the current leadership of its Chief Executive Officer, Dr. Adesola Adeduntan has been instrumental in building stakeholders’ confidence and trust in the bank’s financial viability with analysts left to ponder and perhaps, understudy the pace of such feat has been achieved. They said answers to these have been provided by the bank’s consistent improvements in its Non-performing Loans (NPL) ratio and position.

    For instance, by June 2020, when improvements were noted in the bank’s NPL ratio, the NPL ratio stood at 8.8 per cent. By March 2021, this figure had impressively dwindled to 7.9 per cent, and going by the 2021 results, the figure only stood at 6.1 per cent.

    Non-performing loans, or ‘NPLs’, are bank loans that are subject to late repayment or are unlikely to be repaid by the borrower. The inability of borrowers to pay back their loans was aggravated during the financial crisis and the subsequent recessions.

    For a bank that was almost brought to its knees by the burden of non-performing loans, it came as a great relief to both the shareholders and the regulatory authorities that for the first time in a long while, FirstBank’s NPLs came down to 6.1 per cent, a significant progress for the bank when compared to other Tier 1 banks and the regulatory threshold of 5.0 per cent.

    Analysts also attributed the significant fall in the NPL rates from 40 in 2016 to 6.5 per cent in 2021, to a new culture of corporate governance currently in place in the group and which has successfully revamped the company’s risk management capabilities.

    According to the bank, the recent turnaround and improvement in the non-performing loans have been a major boost in FirstBank’s quest to improve profitability and reinforce its leadership in the financial services industry in Nigeria.

    Analysts said with the impressive results for its 2021 operations, the board and management of FBN have proven to the investing community that the company is ready to take its leadership role in the nation’s banking sector and that the years of locusts have been put behind the institution.

    MAINTAINING FAIRLY MANAGEABLE NPL RATIO

    For a sector already under pressure as a result of a sluggish economy, a challenging operating environment, and increased competitive intensity, the year 2022 came with a lot of fears for the Nigerian banking industry.

    As economic realities dawned on Nigerians, especially in a pre-election year, many investors struggled to get decently priced loans in Nigerian banks, and their plight is not helped when a bank is risk-averse because it already has lots of bad loans on its books.

    It is interesting to note that amidst the huge pressure placed on Nigerian banks by the prevailing sluggish economy, what the management of FirstBank did was diversify its loan books and maintained a fairly manageable Non-Performing Loan (NPL) ratio.

    This is because the percentage of non-performing loans in Nigeria reflects the health of the banking system. A higher percentage of such loans shows that banks have difficulty collecting interest and principal on their credits. That may lead to less profits for the banks in Nigeria and, possibly, bank closures.

    FirstBank recorded the highest NPL ratio in four years with 24.7 per cent in 2018 which dropped to 9.9 per cent, 7.7 per cent, 7.2 per cent in the period of 2019, 2020, and 6.1 per cent in the 2021 full-year results.

    ADEDUNTAN: ‘WE ARE READY TO IMPROVE BOTTOM LINE PERFORMANCE’

    Chief Executive Officer of FirstBank Group, Dr. Adesola Adeduntan, who expressed the determination of the bank to aim higher said, “At FirstBank, we have historically been interwoven with the fabric of this nation with a full-service commercial banking offering catering to every segment of the economy.

    “We believe we are now in a good position to translate this unique revenue generating potential into improved bottom-line performance.

    “Our first-quarter results demonstrate that we have commenced our journey of Quantum Profitability Leap in earnest with profit before tax doubling to N34.1 billion as the Bank begins to reap the dividends of the successful restructuring of its balance sheet, revamped risk management, robust technology, and innovative service offerings.

    “Our gross earnings are also up 33.0 per cent YoY to N170.4bn and Net Interest Income up 42.1 per cent YoY to N72.9bn. Furthermore, our strengthened risk management capabilities equip us with the ability to mitigate any negative effect of headwinds that may materialise given current macroeconomic pressures.

    “Looking ahead, we will continue to maximise all opportunities presented by our large network, and support our customers with innovative value-adding solutions through these uncertain times while investing in strengthening our digital banking offerings to deliver a better customer experience.”

    Culled from Vanguard

  • Feature: Nigeria needs another FDI target as China cuts borrowings

    by Ayo Akinfe

    With China cutting back on its borrowing, our next president needs to set very ambitious foreign direct investment targets

    [1] Food processing – $20bn
    [2] Railways – $15bn
    [3] Power generation – $10bn
    [4] Automobile assembly plants – $10bn
    [5] Steel production – $5bn
    [6] Solid mineral processing plants – $5bn
    [7] Pharmaceuticals – $5bn
    [8] Leather processing – $5bn
    [9] Green energy – $5bn
    [10] Cosmetics and beauty products – $5bn

    If we can attract $85bn in FDI in 2023 and then get domestic industrialists to invest a further $15bn in the economy, we should be fine. As things stand today, we are facing a crisis because Chinese overseas investment is slowing down and the Nigerian state no longer has the cash to take out stakes in commercial ventures.

    Something simply has to give or Nigeria will collapse beneath our feet. Our next president has to attract about $85bn worth of investment if he wants to take 90m people out of poverty and end our designation as the poverty capital of the world.

    By my calculations, about 30m sustainable and remunerative new jobs must be created to end the current scourge of terrorism, kidnapping, armed robbery, banditry, etc. I would like to see the masterplan.

  • Feature: No Presidential Aspirant has mentioned the Country’s Power Crisis

    Feature: No Presidential Aspirant has mentioned the Country’s Power Crisis

    by Ayo Akinfe

    I find it totally unacceptable that none of the presidential candidates has uttered one word about addressing the country’s power crisis

    [1] Elections are due in February and nobody has come up with a policy to address the thorny issue of power generation. It says a lot about the quality of our politics. It appears we actually believe that if we elect “good leaders” the problem will suddenly and miraculously go away

    [2] Nigeria currently has an embarrassing low installed power capacity of 7,000MW, which should shame all of us. Just to put it into context, these are comparable figures for other developing countries: South Africa – 51,000MW, Pakistan – 21,000MW, Indonesia- 55GW, Vietnam – 42GW, Egypt – 40GW. I can go on and on but the fact remains we are so far behind it is deeply embarrassing. It is naive to think that this can be resolved without doing something dramatic or revolutionary

    [3] Egypt opened the world’s three largest power plants recently with a combined 14,400MW capacity. These three stations are expected to supply 45m citizens and save the domestic budget about $1.3bn per year as the result of the subsequent reduction in fuel usage.

    [4] China is the largest solar provider in the world with an installed capacity of around 130GW. Solar and wind farms are just springing up everywhere in China now. In fact, connecting generated power to the national grid is now their biggest problem as the majority of that capacity has been added in areas that don’t need it

    [5] Known as curtailment, Nigeria also has this problem. Basically, curtailment is when you have stranded power that cannot be hooked up to the national grid. I believe that at least three companies went bust in Nigeria as a result of this

    [6] To resolve our problems we basically need a minister of power who is going to dedicate his or her life to this project. Someone prepared to have no life for four years and work on this matter 24/7. So far, Nuhu Ribadu and the late Professor Mrs. Dora Akunyili are the closest we have seen to this. Heads of parastatals who dedicated their lives to the cause

    [7] First of all, we need new construction regulations that make it mandatory to install solar panels on all new houses, schools, offices and buildings

    [8] We keep building bigger churches and mosques every day. Hmmmm. We need laws that prohibit the building of religious houses unless a solar or wind farm is built alongside it

    [9] Businesses must also be given tax relief if they build solar or wind farms. They must be encouraged to use the Atlantic coast to build massive farms. No new business or factory should be given a license unless it plans to generate at least 10MW of power

    [10] We then need a minister of state for distribution who will make transmission his or her life cause. Getting those distribution companies working is a totally new challenge. They need investment and equipment. This is no small challenge, ladies and gentlemen. Phew!

    Ayo is a London-based journalist who has worked as a magazine and newspaper editor for the last 31 years. He was the founding editor of Nigerian Watch, the UK-based paper for the Nigerian community in the UK.  

    He is the current president of Ondo Union UK, the chair of Uncelebrated Nigerian Awards UK and was the chairman of the Nigerian Centenary Awards UK organising committee. He was recently appointed as the Chairman of the Central Association of Nigerians in the UK

    He is also the author of two books on Nigeria. Fuelling the Delta Fires is an expose which reveals the depth of the challenges in the Niger Delta, while Black Ladder is a narrative about the life of a Nigerian immigrant in the UK. In addition, Ayo is a columnist for several publishing houses in both Nigeria and the UK.

    Ayo has a history degree from the University of Ibadan and he did his post-graduate studies in journalism at the University of Westminster.

  • Feature: The Foreign Policy Outlook of the next Nigerian President

    Feature: The Foreign Policy Outlook of the next Nigerian President

    by Ayo Akinfe

    Given that Africa accounts for just 4% of world trade and 1% of global manufacturing, Nigeria’s forthcoming elections should be about consolidation. Unless we pool our resources together, our continent will remain poor and beggarly. I await a foreign policy outlook like this from several candidates

    [1] Nigeria will seek to build a global superpower in the middle of the African continent that will serve as a homeland for negroid people the world over. It will be the spiritual and ancestral home of all negroes

    [2] This nation will merge as many African countries as possible into one giant with an economy that has a GDP of at least $15trn and an annual budget of at least $2trn

    [3] Any negroid person on earth who wants to, will be granted automatic citizenship of this nation which shall be named Songhai. Abuja will be its capital city

    [4] Any negro person who suffers discrimination or ill-treatment anywhere in earth will be welcome to relocate to Songhai on a permanent basis

    [5] Songhai shall start off as an amalgamation of Nigeria, Niger Republic, Cameroon and Benin Republic. It will aim to produce at least one third of the world’s industrial goods

    [6] Songhai shall aim to account for about 50% of global food production

    [7] Given that about 80% of the current Niger Republic is in the Sahara Desert, Songhai shall build the world’s largest solar farm in it. Songhai shall be responsible for providing electricity across the African continent and possibly beyond

    [8] Our Contract With the Negro shall be signed by 55 black leaders worldwide and have the same status as say the Human Bill of Rights

    [9] Songhai shall be self-reliant in everything. Obviously it will trade with other nations but only because it is more cost-effective to import some goods. As a principle, Songhai must be able to manufacture all its domestic needs

    [10] Should negro people be maltreated anywhere on earth, Songhai will have the unilateral right to intervene and airlift them out. It will also have the right to deploy troops there to defend them

    Ayo is a London-based journalist who has worked as a magazine and newspaper editor for the last 31 years. He was the founding editor of Nigerian Watch, the UK-based paper for the Nigerian community in the UK.  

    He is the current president of Ondo Union UK, the chair of Uncelebrated Nigerian Awards UK and was the chairman of the Nigerian Centenary Awards UK organising committee. He was recently appointed as the Chairman of the Central Association of Nigerians in the UK

    He is also the author of two books on Nigeria. Fuelling the Delta Fires is an expose which reveals the depth of the challenges in the Niger Delta, while Black Ladder is a narrative about the life of a Nigerian immigrant in the UK. In addition, Ayo is a columnist for several publishing houses in both Nigeria and the UK.

    Ayo has a history degree from the University of Ibadan and he did his post-graduate studies in journalism at the University of Westminster.