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FIRST BANK: STILL STANDING GIDIGBA 125 YEARS AFTER

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BY ALEX OTTI

This week marks the celebration of the 125th anniversary of the existence of the First Bank franchise in Nigeria. This stands the bank out as one of the earliest institutions established in West Africa, and obviously, one of the handful still in existence today. The bank began as the Bank of British West Africa (BBWA) in 1894 and quickly began playing the role of the Central Bank of British West Africa in the absence of a regulator at those medieval times in the sub region. The bank witnessed the amalgamation of the Northern and Southern protectorates and the eventual independence of Nigeria in 1960. It was founded by Alfred Lewis Jones, a shipping magnate who imported silver currency into West Africa through Elder Dempster shipping company also owned by him. In 1957, the bank changed its name to Bank of West Africa (BWA). Sequel to Nigeria’s independence in 1960, the bank began to extend more credit to indigenous Nigerians as most of its credit facilities were hitherto concentrated on foreigners living in the erstwhile colony.  Standard Bank acquired the Bank of West Africa in 1966 and changed its name to Standard Bank of West Africa. In 1969, Standard Bank of West Africa incorporated its Nigerian operations and its name had to change once again, this time to Standard Bank of Nigeria Ltd (SBN). In 1971, SBN listed its shares on the Nigerian Stock Exchange and placed 13% of its share capital with Nigerian investors. Following the implementation of the indigenisation policy of the then military government soon after the civil war, Standard Chartered Bank reduced its stake in SBN to 38%. This action led to another change in name to First Bank of Nigeria in 1979 as Standard Chartered Bank insisted that since it had lost majority control, the bank should no longer bear its name since by the action, it had failed to be its full fledged subsidiary.  This marked a watershed in the history of the bank as more Nigerians were appointed to the board and it began to look and operate more like a Nigerian bank. The bank had subsequently moved from a limited liability company to a publicly quoted company and back to a limited liability company which it presently is. The latest status is in compliance with changes in the regulatory environment in 2012 that required that the group operates as a holding company, with the bank as one of its subsidiaries or spin off other operations not related to banking. That marked the birth of FBN Holdings which presently has the bank and non bank subsidiaries as part of the group.

In 1982, First Bank opened a branch in London and converted same to a full fledged subsidiary, FBN Bank (UK) in 2002. Two years later, in 2004, a representative office in Johannesburg, South Africa, debuted. At the moment, First Bank has subsidiaries or representative offices in France, China, Democratic Republic of Congo, Gambia, Sierra Leone, Ghana, Guinea and Senegal. At the last count, First Bank had presence across 10 countries in three continents. It operates from over 750 locations and employs close to 22,000 people. Its has over N3.3trillion in total assets. It also boasts over N2.5trillion in Customer deposits with a tidy 19% Capital Adequacy Ratio (CAR). The bank has over 1.3m shareholders and over 14million customers.   Before going further, I must, in the full disclosure tradition of this column, declare that I joined First Bank as an Assistant General Manager on April 1, 2001 and left 10 years after, having risen to the position of Executive Director in 2011. I joined as part of the transformation team of the bank set up following a decision to institute comprehensive reforms in the bank. The project, titled, “Century 2, the New Frontier” effected a total change in the way things were done in the bank. Readers will realize, in the course of this essay, that a major part of the resilience and longevity of the bank has to do with its ability to keep pace with changes, not just in the banking ecosystem, but the global environment.
It is pertinent to note that so many institutions and companies disappear after only a few years of existence and therefore, there must be some distinguishing characteristics that have made First Bank, not only to survive but to excel in the last one decade and a quarter. I will attempt to share my own thoughts on this, which would definitely not be exhaustive.
One thing that stands the bank out is that everything it does is woven around strategy. In my days at the institution, and I believe it should still be the same now, the bank will start a year with long board and management strategy sessions. These comprise long and short term strategies. The long term strategies normally have a horizon of 5 years while the short term ones are normally between one and three years. I am sure some people, particularly in other environments, will argue that 5-year strategies would be at best described as medium term, but the truth is that in the Nigerian market, 5 years is even too long given how rapidly things change here!  Organizations succeed and fail on strategy. The profound saying that when you fail to plan, you plan to fail fits in perfectly here. It is also said that when you are not certain about where you are going, any road takes you there. Having a clear strategy is one thing, achieving flawless execution is another.     I am aware of organisations that are very long on plans and short on implementation. On this, you must give it to First Bank as it is also very good on monitoring and measurement. It is a known fact that what doesn’t get measured, hardly gets done. So, to execute, you must have measurement tools and put in place, a system that not only rewards good performance but also poor performance. I can still remember our strategy sessions as we joined in 2011, where the then CEO, Mr. Bernard Longe reeled out the Big Hairy Audacious Goal (BHAG) of “being twice as large as the second largest bank in Nigeria by a defined future date”. Yes, the bank may not have achieved that goal within the timeframe, but it did have a goal and it did work towards that goal. It is in strategy that you define who you want to be, who you want to serve, how you want to serve them and what distinguishes you from the “guy down the road”. Once you have those agreed, the tools and the people must also be addressed. I have seen situations where management disbands a strategy put in place by the organisation only to replace it with a weak strategy or none at all and in consequence end up as lunch for competition.  First Bank is noted for its very strong corporate governance regime. I believe this is at the heart of the longevity of the bank. In our days and I believe it is the same till today, there are things you simply could not do irrespective of who you were. Just like any organsation, the bank had a soul, meaning the key board members who called the shots. But every decision had to go through a process. Having survived over a long period of time, most things were documented and rules were strictly adhered to. I recall that even loan applications from viable businesses of shareholders of the bank must not only be disclosed, but must go through rigorous processes before they were approved. And with the Risk Management function under very experienced professionals with the brilliant Sanusi Lamido Sanusi, who was later to become CEO of the bank and six months later, the CBN Governor and currently the Emir of Kano, you couldn’t go round the process. By the way, it will not be out of place to mention that I was appointed an Executive Director the same day, September 4, 2005 with HRH Sanusi who had joined from UBA. Others appointed same day with us were Oladele Oyelola, Remi Babalola who went on to become Minister of State For Finance, and Mrs Bola Adesola, the current CEO of Standard Chartered Bank. We joined the only surviving executive director from the regime before ours, Mr. John Aboh, who is the current Chairman of Ecobank Nigeria and the then CEO of the bank, Mr. Jacobs Moyo Ajekigbe.   As we were appointed, we were handed over a merger and acquisition deal, (some called it outright takeover bid) with another bank with footprints in some other African countries. The deal looked good on the surface, but some of us saw danger in the whole transaction as proposed. We struggled with that transaction for close to two years before resting it. Even though there was very strong support for the deal from some influential shareholders, management thought it was not going to create value for First Bank and therefore had to let it die a natural death. Yours truly had argued then that based on “back of the envelope analysis”, over 60% of mergers and acquisition destroy shareholder value. This my held position was to be corroborated by the Harvard Business Review Report in 2015 which stated that between 70% and 90% of mergers and acquisition destroy shareholder value and in fact fail. The reasons for failure are fully documented in the literature. One is glad that we still have the foremost Nigerian bank with us today celebrating its 125 years anniversary as some of us are persuaded that the situation would not have been the same if that deal went through. On this note, permit me to acknowledge the resilience of Mr. Jacobs Moyo Ajekigbe who showed strength of character as the buck naturally stopped on his table.   One of the lessons to learn from the First Bank story is its ability to adapt to changing situations in the environment. For an organisation to adapt, it must understand the environment and be able to read changes and sometimes predict them, even before they happen. The reality is that human beings will normally gravitate around their comfort zones and oftentimes, become very resistant to change. It is only an organisation that constantly interrogates the status quo that will be able to adapt to changes or even lead the change itself. In our time, we realized that we had what our Human Capital Management department referred to an “aging workforce”. Like Clinton would say about Senator Dole, “we did not have a problem with their age, but with the age of their ideas”. The bank started a workforce renewal strategy which saw to the entry of young people with fresh ideas who could relate to the youthful population who were basically in control of the “new money”.   To attract them, one needed people that not only looked like them but also reasoned like them. An age band was approved by management for different levels in the staff cadre. This tilted the average age of staff down significantly. Younger people were selected to replace those retiring on account of age. Technology was massively deployed as part of strategy. Service delivery, which was measured by external consultants, spiked in the positive direction. The bank was able to compete with smaller and younger banks, giving them a run for their money.    The brand equity is an important part of any organisation, more so a bank. First Bank benefited so much from its brand. Because some banks had come and gone and bank failures has not ceased even at this moment, the bank benefitted from its longevity. Some people joke about dead people’s money being warehoused in the bank. Besides, what the brand represents is also the conscious effort at tweaking the brand to be in tune with modernity, of course without doing away with the reassuring effect of the ‘elephant’. I remember with nostalgia, the first strategy session we attended in Gateway Hotel, Otta in 2001, a new colleague, had proposed that the bank should do away with the elephant as the animal is not known to be smart, fast and efficient. We were all shocked at the response he got. Virtually everyone, except those of them that were new, charged at him, in the manner of the elephant he wanted removed. That was the last time he made that kind of suggestion. It was considered a heresy to remove the elephant. The rest of the people that mustered courage to speak about the elephant talked about how to make it nimble, how to face it forward rather than backwards, how to get the elephant to raise one of its legs and generally how it would reflect efficiency in strength.
Finally, I have always maintained that an organisation cannot be better than its people.    First Bank has built a culture of employing very sound and good people. The recruitment process is excellent and gives little or no room for manipulation. The reward system ensures that the best people stay and misfits are gradually eased out. The compensation system remains competitive from what I hear and positions at the top are tenured such that the CEO and Executive Directors must retire after a maximum of two tenures of 3 years each. This policy makes it difficult for people to sit tight at those levels and also keeps the top open for deserving younger people to aspire. It is my sincere hope and belief that these time-honoured traditions of First Bank endure.

Let me therefore join millions of Nigerians to congratulate First Bank on this 125th Anniversary celebration and wish the Board, Management, Staff, Shareholders and Customers well. Of course, I pray for the continued sense of camaraderie that exists among the ex-staff of First Bank

 

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Body of Bank CEOs Delivers Critical Relief to Flood Victims in Niger State, Pledges Continued Support

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Pix 1 L-R: Registrar & Chief Executive of the Chartered Institute of Bankers of Nigeria (CIBN) Akin Morakinyo; Managing Director and Chief Executive Officer of Keystone Bank Limited, Mr. Hassan Imam; Group Managing Director/Chief Executive, Zenith Bank, Dame (Dr.) Adaora Umeoji; The Executive Governor of Niger State, His Excellency, Governor Mohammed Umaru Bago; Chairman, Body of Bank CEOs and Group Managing Director/CEO, United Bank for Africa (UBA) Plc, Oliver Alawuba; Managing Director Taj Bank Mr. Hamid Joda; and Secretary to the Government of Niger State (SSG), Alhaji Abubakar Usman during the donation of relief materials from the Body of Bank CEOs in Nigeria, aimed at supporting victims of the recent devastating floods in Mokwa Local Government Area held at the Niger State House in Abuja at the weekend.

The Executive Governor of Niger State, His Excellency, Governor Mohammed Umaru Bago; Chairman, Body of Bank CEOs and Group Managing Director/CEO, United Bank for Africa (UBA) Plc, Oliver Alawuba during the donation of relief materials from the Body of Bank CEOs in Nigeria, aimed at supporting victims of the recent devastating floods in Mokwa Local Government Area held at the Niger State House in Abuja at the weekend

Pix 3: L-R: Managing Director and Chief Executive Officer of Keystone Bank Limited, Mr. Hassan Imam; Group Managing Director/Chief Executive, Zenith Bank, Dame (Dr.) Adaora Umeoji; The Executive Governor of Niger State, His Excellency, Governor Mohammed Umaru Bago; Chairman, Body of Bank CEOs and Group Managing Director/CEO, United Bank for Africa (UBA) Plc, Oliver Alawuba; and Managing Director Taj Bank Mr. Hamid Joda, during the donation of relief materials from the Body of Bank CEOs in Nigeria, aimed at supporting victims of the recent devastating floods in Mokwa Local Government Area held at the Niger State House in Abuja at the weekend.

In a heartwarming display of corporate social responsibility and solidarity, a consortium of Nigerian Bank CEOs, has pledged significant support to alleviate the suffering of flood victims in Niger State

The Executive Governor of Niger State, His Excellency, Governor Mohammed Umaru Bago on Saturday in Abuja received relief materials from the Body of Bank CEOs led by its Chairman, Mr Oliver Alawuba.

The gesture is aimed at supporting victims of the recent devastating floods in Mokwa Local Government Area of the state.

Oliver Alawuba who is also the Group Managing Director/CEO of United Bank for Africa(UBA), led the delegation to the Niger State Government house Abuja, where they presented essential relief items, including bags of rice, beverages, vegetable oil, and mattresses, valued at millions of naira.

The devastating floods, which have affected thousands of families in the region, have prompted the banking community to come together in a show of empathy and support to those displaced and affected by the disaster.

In his address, Alawuba expressed the banking industry’s deep sympathy for the affected communities and reaffirmed their dedication to sustainable support while pointing out that the gesture underscores the banking sector’s commitment to corporate social responsibility and humanitarian intervention especially in times of crisis.

He said, “Today, we stand with the people of Niger State in their time of need. We want you to know that we feel your pain and we give you our firm resolve to assist in rebuilding lives. This donation is just the beginning; we pledge continued collaboration with the Niger State Government to ensure long-term recovery and resilience.”

Other top CEOs and executives at the presentation included by the Group Managing Director/Chief Executive of Zenith Bank, Dame (Dr.) Adaora Umeoji, the Registrar and Chief Executive of the Chartered Institute of Bankers of Nigeria (CIBN), Mr. Akin Morakinyo, Managing Director and Chief Executive Officer of Keystone Bank Limited, Mr. Hassan Imam; Managing Director Taj Bank Mr. Hamid Joda; Secretary to the Government of Niger State (SSG), Alhaji Abubakar Usman senior government officials, banking executives, and media representatives, marking a significant step in public-private collaboration for humanitarian relief.

Governor Bago, who received the relief materials on behalf of the state, commending the banking sector for its timely intervention.

“This gesture reinforces the critical role of private-sector partnerships in disaster response,” Governor Bago stated. “We are grateful for this support and look forward to deeper collaboration in safeguarding our communities against future challenges. On behalf of the good people of Niger State, particularly the affected families in Mokwa, I extend our sincerest thanks for this timely and compassionate intervention,” Bago stated.

“The recent floods in the state brought immense hardship to the people, displacing families, destroying livelihoods, and disrupting communities and the banking sector, under the leadership of Alawuba and his esteemed colleagues, has demonstrated that beyond financial stewardship, they are true partners in national development and humanitarian service.

This donation is not just about the physical items; it is a symbol of hope, resilience, and the unwavering support of Nigeria’s financial institutions in times of need. It reassures our people that they are not forgotten, the governor stated.

 

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FirstBank Wins Gold for Best Corporate University in Social & Climate Change Impact

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 FirstBank, the West Africa premier bank and financial inclusion services provider, is thrilled to announce that its Corporate University, FirstAcademy, has been awarded the Gold Award for Best Corporate University in Social & Climate Change at the Global Council of Corporate Universities (GlobalCCU) Awards 2025.

This highly acclaimed award recognises FirstAcademy’s outstanding commitment to driving social and climate change learning initiatives, aligning its learning and development programs with internal stakeholder needs, and promoting Corporate Social Responsibility (CSR).

The GlobalCCU Awards is a prestigious, biannual recognition of excellence in corporate universities, setting the highest standard for the industry. With a rich 12-year history dating back to its inaugural ceremony in Paris in 2013, the awards have consistently honoured outstanding Corporate Universities, learning and development structures worldwide. The GlobalCCU Awards celebrate institutions that create remarkable value for people, businesses, society and the planet.

FirstBank’s FirstAcademy exemplifies this mission by earning the Gold Award for Best Corporate University in Social & Climate Change at the 2025 ceremony in Paris, France. This distinction reflects FirstAcademy’s dedication to fostering sustainability and environmental responsibility; developing impactful learning initiatives that transcends traditional corporate training, with broader societal goals; integrating climate action into its portfolio and operations;  expanding climate finance offerings and developing a climate action capacity building training program.

FirstAcademy was inaugurated in 2012 as the Bank’s designated corporate academy designed to provide structured talent development, knowledge management and culture change initiatives. One major objective of the academy is to equip staff with the requisite knowledge and skills required to deliver on the Bank’s strategic aspirations and to thrive in an ever-evolving work environment while contributing to social and environmental responsibility.

According to the Founder and Chairman of the GlobalCCU Awards, Annick Renaud-Coulon, “FirstAcademy is an outstanding Corporate University that is clearly the Best Corporate University globally for driving social and climate change learning initiatives.”

Congratulating FirstAcademy, the Founder and Chairman of the GlobalCCU Awards, Annick Renaud-Coulon, said “FirstAcademy is a very mature Corporate University which demonstrates a strong alignment with FirstBank’s vision of responsible banking and sustainable development, with clear support from senior leadership and a governance model that strategically connects learning to business priorities. Congratulations to FirstAcademy for setting a visionary standard in advancing meaningful social and climate change impact through learning and inclusive capacity building!”

In the words of Olayinka Ijabiyi, the Acting Group Head, Marketing and Corporate Communications, FirstBank “We are delighted to receive this international recognition for our efforts in promoting social responsibility and climate action. This award serves as a testament to our belief that businesses can be a force for good, driving transformation that extends beyond profit to create sustainable and equitable futures for all.  FirstAcademy’s programs have not only enhanced employee skills but also contributed to the well-being of society and the environment.”

As FirstBank’s FirstAcademy continues to bridge the gap between corporate initiatives and community needs, it sets a leading example for corporate universities around the globe, inspiring others to follow suit in the quest for meaningful change.

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Access Holdings Topsin Asset Qualityin Proshare’s 2025Tier1 Banking Rankings

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Access Holdings PLC has been ranked the Tier 1 bank
withthebestassetqualityinNigeria,havingpostedthelowestNon-PerformingLoan
Ratio(NPLR)at2.76percent,accordingtoProshare’s2025Tier1BankingReport
released, recently. This marks a significant achievement for Access Holdings, reinforcing
its leadership in credit discipline, risk management, and sustainable lending practices.
The report, titled “The Class of 2025: Getting Bigger, Bolder, and Dominant”, ranks
AccessHoldingssecondoverallintheTier1category,placingjustbehindEcobank
TransnationalIncorporated(ETI),whichledwithapercentilescoreof100.Access
Holdingsfollowedcloselywitha91stpercentileranking,aheadofZenithBankat73
percent, FirstHoldco at 82 percent, UBA at 64 percent, and GTCO at 55 percent.
In terms of NPLR performance, Access Holdings maintained a remarkable 2.76 percent,
outperforming Zenith Bank at 3.54 percent, GTCO at 4.07 percent, UBA at 3.80 percent,
ETI at 6.25 percent, and FirstHoldco at 6.70 percent. This places Access Holdings at the
forefrontofassetqualitymanagementamongNigeria’stopbanksandreaffirmsits
reputation for operational discipline amid market volatility.
Commenting on the achievement, Bolaji Agbede, Acting Group Chief Executive Officer of
Access Holdings PLC, said: “This ranking is not just a measure of our financial health; it
reflects the strength of our governance, thequality of our decision-making, and the focus
we place on long-term value creation. It is a testament to the discipline of our people and
the effectiveness of our pan-African strategy.”
She added: “At Access Holdings, we believe that sustainable success lies in balancing
growthwith resilience.Wewill continuetoexecutewith precision,buildwithpurpose, and
innovate with integrity as we expand our presence across Africa and beyond.”
The 2025 edition of the Proshare Bank Strength Index (PBSI) introduces a recalibrated
framework that reflects the realities of the ongoing recapitalisation exercise in Nigeria’s
bankingsector. Thisedition goesbeyond traditionalfinancialmetrics andincorporates
broaderdeterminantsofprofitability,stability,andstakeholdervalue.ThePBSImodel
emphasisescapitaladequacyandscale,assetqualityandsustainablegrowth,digital
transformation andearnings diversification,governance qualityand boarddiversity, as
well as profitability and cost-efficiency.
  • www.accessbankplc.com
    AccessHoldingsdemonstratedstrongfundamentalsacrossalltheseparameters.It
    closed Full Year 2024 with total assets of 41.5 trillion and a loan book of 13.1 trillion.₦ ₦
    The Group’scapitaladequacyratiostoodat20.46percent,whileassetgrowthforthe
    periodreached55.49percent.Itscostofriskwasheldat1.25percent,netinterest
    margin recorded at 6.80 percent, and earnings growth was an impressive 88.05 percent,
    all indicators of a business built on financial soundness and execution excellence.
    Speaking at the launch event, Olufemi Awoyemi, Chairman of Proshare, described the
    report as a vital mirror into the shifting dynamics of Nigeria’s financial services industry.
    “AccessHoldingshasprovenitselfasastrong,adaptiveinstitution.Itsrobustcapital
    base, successful fundraising, and continental expansion efforts show a group that is not
    onlygrowingbutevolving.Asrecapitalisationreshapesthebankinglandscape,
    institutions like Access Holdings will continue to define the future of finance in Africa.”
    He further remarked on the nuance behind E
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