Speaker Obasa Congratulates Sanwo-Olu At 58, Celebrates Gbajabiamila On Birthday
The Speaker of the Lagos State House of Assembly, Rt. Hon. Mudashiru Obasa, has congratulated Governor Babajide Sanwo-Olu and Femi Gbajabiamila, Chief of Staff to President Bola Tinubu, as they mark their birthdays.
While Governor Sanwo-Olu is 58, Gbajabiamila, immediate past Speaker of the House of Representatives, is 61.
In a message celebrating Sanwo-Olu, Dr. Obasa described the Governor as a Lagosian whose background and experience in the corporate world have helped in sustaining the position of Lagos as the yardstick for measuring development in Nigeria.
Obasa described Sanwo-Olu as an exemplary Governor with a sense of purpose and commitment to the ideals that make Lagos great.
“You have constantly ignited the passion for the sustenance of the dream, vision and the inclusiveness that have kept us achieving more for the people of our dear State.
“Your life speaks a volume of blessings, God’s favour and, because you are a technocrat of repute, our State of excellence will continue to benefit from your wealth of knowledge and experience as you increase in age.
“Indeed, this is just the beginning of greater years to come,” the Speaker said in a statement by his media office.
Rejoicing with Gbajabiamlia, Dr. Obasa described the former Speaker as a compassionate person and one who breathes life into every task to which he finds himself assigned.
“You have consistently displayed genuineness of purpose and leadership.
“We witnessed this in the various positions you held at the House of Representatives and more especially as Speaker. History will always throw you up as the leader of one of the most peaceful periods of the House of Representatives in Nigeria.
“Your leadership skills, diligence and commitment to nation-building are few of your radiant and remarkable attributes that will continue to help you meet the tasks ahead as you support Mr. President in his pursuit for a greater Nigeria.
“On behalf of my family, colleagues, management and staff of the Lagos legislature, I pray that Almighty Allah will always empower you to remain of service to Him and humanity, amin,” Speaker Obasa prayed.
BUA Foods to maintain rice prices across Nigeria…restates commitment to supporting Local Rice Farmers for Food Security in Nigeria
In a remarkable display of commitment to the Nigerian agricultural sector and the economy, BUA Foods has informed distributors of its rice products that it would maintain prices of its BUA Rice to support efforts at making rice more affordable in Nigeria. According to a statement by the company, this is due to the strong sales potential from the company’s newly upgraded 200,000tonnes per annum rice mill in Kano using locally sourced rice paddy.
According to the company, this decision to maintain prices is as a result of the little reliance on FX for rice production. Prior to the BUA Foods business integration which saw its listing in 2022, the BUA Group Chairman, Abdul Samad Rabiu, had stated that BUA’s goal would be to focus areas where raw materials can be sourced locally across all its business areas including rice in order to promote food security in Nigeria and support the government in National development.
According to a key distributor in Kano, he said distributors were excited by this development and were sure that BUA Foods in its usual fashion would crash the rice prices further as it had consistently done with its other food products like flour, sugar, and pasta.
By prioritizing local agricultural resources, BUA Foods is not only supporting Nigerian farmers but also contributing to the nation’s self-sufficiency in rice and sugar production through backward integration.
BUA Foods steadfast commitment to its vision has gained recognition and appreciation from stakeholders across the industry. The company’s efforts to bolster the Nigerian agricultural sector have garnered praise, positioning BUA Foods as a leader in the drive towards sustainable food production.
The upgraded rice mill and parboiling plant will further enhance BUA Foods’ rice production capacity, enabling the company to meet the growing demand for its high-quality rice products whilst remaining committed to delivering excellence and ensuring that consumers have access to top-notch rice that is locally produced.
As BUA Foods continues to make significant strides in advancing the Nigerian rice industry, the company remains focused on building strong relationships with farmers, empowering local communities, and contributing to the overall development of the nation’s agricultural landscape.
LEADERSHIP AND FIRSTBANK’S SUCCESSFUL TRANSITIONING TO ‘CLICK’ BANKING
In December 2015, the share price of First Bank of Nigeria Limited was trading around N4.8 band. About seven years later, precisely last December, the value held tightly to N15, growing by over threefold amid general asset and economic doldrums.
The steep rise in the valuation of the financial institution deviates remarkably from the average performance of FUGAZ, an acronym describing the top five Nigerian banks by market capitalisation. In the past seven years, the share prices of the leading banks appreciated by an average of 90 per cent as against over 200 per cent growth seen in FirstBank.
Deflated by the bank’s exceptional performance, Access Holdings, GTCO, UBA and Zenith stocks posted about 60 per cent growth. The performance of the entire banking sector also flattens out when compared with FirstBank, which raises questions about the fundamentals of the bank and its growth trajectory.
In terms of inflation-adjusted return on investment, FirstBank shareholders are among the investors that emerged from the turbulent years with a positive real rate of return. Was it a stroke of luck? Does the market reward poor performance?
Of course, stocks sometimes thrive on mere greater fool theory, thus triggering an asset bubble. But the positive share movement of the premier bank is but only one of the many high growth indicators.
In first quarter of 2023, the bank’s non-performing loan (NPL) ratio came down far below the five per cent regulatory threshold, which means so much difference when placed in a historical context. As at December 2015, its NPL ratio was over 45 per cent, a telling reflection of the level of effort that went into cleaning its books in the intervening years. For analysts, the cleanup, which was done without raising fresh capital, explains what disciplined, focused and forthright leadership could achieve.
On cleanup process, the Bank CEO, Dr. Adesola Kazeem Adeduntan, said the institution was “its self-created AMCON”, referring to the Asset Management Corporation of Nigeria set up in the aftermath of the 2008 financial crisis to buy up the threatening toxic assets of Nigerian banks.
Indeed, what the management of the bank has done in the past seven years is not remarkably different from the role of AMCON, since its creation in 2011, except that the former raised fresh capital for its humongous responsibility whereas the bank did not. Also, the FirstBank experience was internal; and it did face a tougher task in terms of the proportion of its assets that had gone bad.
At the height of the financial crisis in 2008/2009, the NPL ratio rose to 37.3 per cent, from 9.9 per cent on record in 2007. On the other hand, the premier bank was carrying over 45 per cent NPL on its book as at January when Adeduntan took the reins of its leadership as the managing director.
All through the process, the bank did not raise fresh capital for the housecleaning programme, meaning the shareholders’ value was not diluted in the process.
Investors may have also kept in view other impressive qualitative metrics such as pre-tax return on equity (RoE), a measure of net income in proportion to shareholders’ equity, which moved from 0.6 to 17.3 per cent at the end of last year’s financial cycle. Also, pre-tax Return on Asset (RoA) climbed from 0.1 to 1.6 per cent while the cost of risk was also down to 1.7 per cent last year, from 10 per cent recorded in its 2015 financial.
At the end of this month, Adeduntan would have spent 7.5 years in office and he would be 30 months short of the tenure limit requirement. Already, he is the longest-serving chief executive of the institution, which is known for its short-term leadership tradition. Casual observers consider him as fortunate, but deep analysts think differently – the bank has been fortunate to have had him.
The lender, which predated ‘Nigeria’, and played the most active financial role in the structuring of the country’s pre- and post-Independence economy, may have just got its groove back under the current management. The books are clean and the NPL is trending downward, faster than the industry average. But beyond, its top and bottom lines are all out of the woods and climbing.
Its total assets, for instance, have increased by 167 per cent in the past seven years, meaning that its asset size has almost tripled, which also outperformed the industry growth. In terms of liquid asset to total asset ratio, it is also ahead of most of its peers. This suggests that while the quality of its assets has increased remarkably, with the NPL ratio falling by 88 per cent in less than a decade, the bank’s asset growth has not stalled, which speaks volumes about the quality of its risk management approach.
Currently, FirstBank had in its portfolio of about 41 million customer accounts, an extraordinary 276 per cent lift from its 2015 record. The figure is about 30 per cent of total bank accounts held by Nigerian banks. Customer depositors also jumped by as much as 153 per cent to 10.6 trillion.
The growth seen is also robbing off on the bottom line with the profit before tax (PAT) increasing by N137 billion in the period. That translates to over 1300 per cent, probably contributing majorly to the sudden spike in the share of the bank.
Perhaps, owing to its long history dating back to when banks were mostly associated with corporate and public sector financial infrastructure, FirstBank was mostly seen as a go-to for savers and borrowers. But that seems to have changed with its many smart digital channels. For its management, that is deliberate.
“Our goal is to transform the bank from lending-based to a transaction-based financial institution,” the chief executive pointed out.
Yes, its transformation is no longer a dream. From zero share of corporate e-bill payments, it has shoved its competitors behind to take hold of 42 per cent of the market. The bank, in the words of its managing director, has pivoted from brick and mortar to “brick and click”, making payment seamless and a click away for individuals, corporate as well as public entities.
“We have built a very formidable trade and cash management platform that we call FirstDirect, which allows corporate banking customers, from the comfort of their home, to initiate a trade transaction and complete it. You have a single view, giving you an interface where you can add your different accounts and transact,” Adeduntan explained.
FirstMobile, a standalone digital bank, has also emerged as a household name in the financial technology ecosystem. In 2015, when the platform was still at its teething age, its users were about 60,000 a number that soared to over six million (a growth of over 10,000 per cent). That has contributed immensely to the changing tradition of banking with FirstBank, as about 85 per cent of its transactions are now initiated via digital windows.
FirstMobile appears to have hit the bull’s eye in the bank’s reinvention drive and effort to appeal to younger demographics. But the platform itself is merely one of the potpourris of telecommunication-driven initiatives it has taken on to get the young depositors on board. FirstOnline users have also grown from about 90,000 to over one million within the timeframe just as its USSD, which targets feature phone users, is even more successful with users increasing by close to 3,000 per cent in seven years to 14.7 million.
Overall, its digital banking has evolved in both volume and public impression. Ease, convenience and reliability have moved the customer base from its tiny 0.6 million to 22 million.
Indeed, FirstBank is transmuting into a transaction-led institution. Last year, the volume of transactions hit 17 million, 8.5 times what it was in 2015 when it experienced some corporate turbulence. But the growth is not only in volume terms, as its non-interest income ratio hit 40.6 per cent for the first time last year, which aligns with the strategic direction of the current management in weaning the group from excessive credit risk exposure.
Over the years, most Nigerian banks have consolidated their global outlook. FirstBank has led the pack with its 40-year United Kingdom subsidiary, which is bigger than some of its competitor wholesale operations back home. But some of the pro-offshore Nigerian banks had been accused of extroversion and ego-seeking as most of the outposts were nothing but cost centres.
In the past few years, the assumption has been deflated; and the performance of the African subsidiaries of FirstBank is among what could be changing the tide. Before the 2015 change of the guard, the subsidiaries’ operations left had created a gaping hole in the PBT of the consolidated account. Last year, they contributed a combined 21.3 per cent to the group’s pre-tax profit.
But that was not because there was no risk out there. In the heat of the Ghanaian government debt crisis, Adeduntan revealed, FirstBank took the least impairment among Nigerian banks that were exposed to the crisis “not because we saw it coming but because we have consistently done the right thing and adopted best risk management practice”.
There is also a humane side to his management approach. Today, FirstBank is among the highest-paying Nigerian banks and offers the most attractive conditions of service, including training, accelerated career growth and many more. In 2021, its efforts were compensated with the Great Place to Work Award. Today, the once-touted conservative bank is attracting young and upwardly mobile professionals with the average age of its employees estimated at 39 years.
Being the longest-serving managing director of the pre-colonial financial behemoth, Adeduntan has the leverage of time and experience to enforce its transformational agenda. But he had also prepared for the job. At KPMG where he co-pioneered the firms’ financial risk management advisory services, he trained in almost all areas of human endeavors – presentation, people management, business writing and all sorts. On assumption of office, he was bold and firm in his decision to headhunt, institute new work culture, clear career growth blockages and challenged the status quo.
His courageous outing in the past seven and half years has transformed an institution once considered one of least prepared for the age of “brick and click” banking into the Usain Bolt of the emerging financial technology space.
Heritage Bank Engulfed in Leadership Crisis …MD Akinola George-Taylor goes on vendetta sacking to oust ‘owners’
* Bank battles liquidation, struggles to stay afloat
A seeming boardroom crisis that may rock troubled Heritage Bank to its foundation is currently brewing in the bank, THE WITNESS exclusively reports.
Competent sources within the bank told THE WITNESS that the imbroglio involves the current managing director and chief executive of the bank, Mr. Akinola George-Taylor and some board members.
Less than one year after assuming office as bank’s head honcho, the new bank chief may have plunged the distressed bank into further boardroom crisis, compounding the lender’s many challenges.
George-Taylor, who joined Heritage Bank as acting managing director/chief executive officer on September 12, 2022, succeeded Ifie Sekibo, the bank’s founder and pioneer managing director who served out his 10-year tenure in September 2022. George-Taylor was, however, confirmed by the Central Bank of Nigeria (CBN) as the substantive managing director of the lender in April 2023.
But while the bank’s shareholders may have been expecting that the new helmsman would change its fortunes and drive growth, sources say he has instead, allegedly, instigated internal crisis, in an attempt to rid the bank of those suspected to be loyalists of some board members, and employ his own people. The move, sources disclosed were unconnected with the new bank chief’s plan to oust some board members who are said to be at loggerheads with him, from the bank.
The bank’s chief is said to be enjoying the support of a top shareholder of the bank whom sources say is allegedly determined to solely take over the bank and get rid of the owners.
Top sources in the bank, which has been struggling to stay afloat in recent months, informed THE WITNESS that not less than 70 senior staff members have been sacked, while a number of others were asked to resign. Besides those who were forced to leave, sources say that some resigned voluntarily over poor working conditions, while the once active branches of the bank are as quiet as graveyards. THE WITNESS further gathered that the affected staff were disengaged without paying them their accrued entitlements and allowances.
This development comes despite an order by the Central Bank of Nigeria (CBN) barring deposit money banks from mass sack of their workers.
“I can tell you that there is war at Heritage Bank as we speak. Over 70 persons have been asked to go, while some were asked to resign. Mind you, those who were asked to go have not been paid any compensation,” said a management staff who preferred anonymity.
“The mission of the new managing director is to ease out those who are loyal to some board members whom the managing director is not in tune with, so he could employ his own people,” one of the sources said.
The latest crisis comes amid persisting financial distress in the bank.
THE WITNESS gathered that the bank has been struggling to pay workers’ salaries for some time now, even as depositors have not been able to access their funds.
The apex bank, it would be recalled, had come under pressure to withdraw the bank’s license over its alleged bankruptcy issues, and inability to meet obligations to depositors.
Many had wondered why the Nigeria’s banking regulator had not wielded its hammer on the bank despite its troubled and distressed state.
Further investigations by THE WITNESS however revealed that apart from the issues of “Capital Adequacy Ratio (CAR) and the Liquidity Ratio (LR), the commercial bank is also grappling with many other crises that tend to threaten its survival.
One of them is its poor services which are staring its customers in the face. Already, most of its branches are awash with complaints of unsatisfied customers whose singsong is their plans to close their accounts due to long hours they experience to get services from Heritage Bank staff.
In our fact-finding mission, THE WITNESS contacted Ozenna Utulu, the head of Corporate Communications of Heritage Bank for the bank’s angle.
In her response, Utulu said: “These things are not true, there is no boardroom crisis at the bank. Of course, organizations everywhere restructure from time to time.”
Just In: Akpabio Emerge Senate President with 63 Votes While Abbas Emerge Speaker with Landslide victory
The tussle for the leadership of the national assembly of the 10th Senate and the Speakership of the Federal House of Representatives has been put to rest with the election of Godswill Akpabio, senator representing Akwa Ibom North-West as the senate president.
He polled 63 Votes to defeated Abdulaziz Yari, senator representing Zamfara Central who polled 46 votes, to win the election on Tuesday.
Also in the Green Chamber House of Representatives, Honourable T J Abbas emerge as Speaker in a one sided landslide victory against Hon Idris Wase and Hon Jaji Aminu
JOHARRY CHANGES THE MUSIC SCENE WITH NEW SINGLE “COME CLOSER”
Sensational Afro-Soul act, Harrison Joseph Chijioke popularly known as Joharry is set to change the music scene in Nigeria with the official unveiling of his new single entitled; Come Closer from his anticipated extended play (EP) tagged- Red Room.
Joharry, the talk of the town artiste, is under the running of Forth Plus Management, owned by Mr. Biodun Otun, proudly known and called Biddy by friends and associates.
The Nigerian based talented artiste is unique with his powerful vocal delivery, captivating performance with extraordinary stage craft that are rare to find lately among up and coming artistes in the music industry in this part of the world.
Joharry has been uniquely different and much focused on his music passion at a very young age, trying to perfect his act of singing and writing good songs. And, he is no doubt geared up to send warning signals to the self- acclaimed heavy weights in the music industry that he is ready to take over the scene at the right time.
Information has it that the digital space is dying to get the new single- Come Closer by Joharry and professionally mixed and mastered by Lahlah_Smoke plugged on the music hub for downloads and full listening pleasures, which was officially released on Wednesday June 7, 2023 to the admiration of his fans and good music lovers around the world.
Surprisingly, those who should know squealed that some top notch radio AOPs and Disc Jockeys have already gotten the song for massive airplay on different radio stations like no other and you are assured of new spanking hit as you come closer to your radio set.
The unveiling of Joharry the new Afro-Soul king with a media parley took place on Wednesday June 7, 2023 and it was packaged by 1908SOLE, a reputable production and creative event management company in Nigeria.
We also learnt that the industry watchers agree that Joharry has been a force to reckon with in the entertainment industry from different shows and engagement and he had really stepped up his game and very soon his new single will become a household anthem for good music lovers.
To keep the record straight, Joharry is not new in the game but he is one of the rare sensational talents that wait for their time to shine like a real star and do the real thing in the music industry.
And, if you are dying to meet with Joharry, you can simply hook him up on instagram@iamjoharry or Twitter@iamjoharry
Just In: Obasa Makes History, Reelected Speaker 3rd Time
Rt. Hon. Mudashiru Ajayi Obasa has been re-elected by his colleagues to lead the Lagos State House of Assembly as Speaker for the third consecutive time.
The lawmakers also elected Hon. Mojisola Lasbat Meranda as the Deputy Speaker.
Obasa was unanimously re-elected after a proclamation of the 10th Assembly of the Lagos State House of Assembly by Governor Babajide Sanwo-Olu, who was present with Deputy Governor Obafemi Hamzat and top government officials at the chamber of the House.
Obasa, the most ranking member of the House, was nominated by Hon. Temitope Adewale, who was seconded by Sylvester Ogunkelu.
Hon. Noheem Adams, the Deputy Majority Leader in the ninth Assembly, was elected as the new Majority Leader while Hon. Adedamola Kasunmu was elected the Deputy Majority Leader.
Hon. Mojeed Fatai of Ibeju Lekki 1 was elected as the Chief Whip while Hon. David Setonji was elected the Deputy Chief Whip.
Breaking: Lagos 9th Assembly Ends, Lawmakers-elect Declare Obasa To Speak Again
The ninth session of the Lagos State House of Assembly officially ended on Friday with the returning lawmakers and lawmakers-elect all declaring support for Dr. Mudashiru Obasa as Speaker of the 10th Assembly.
The lawmakers-elect, who were physically present at the sitting, spoke with journalists immediately after the valedictory session of the House presided over by Speaker Obasa.
Speaking on behalf of the returning lawmakers, the immediate past Chief Whip of the House, Hon. Mojisola Lasbat Meranda, said Speaker Obasa had no rival.
“I give it to the Rt. Hon. Speaker Obasa for being able to coordinate 40 members of different backgrounds, different thinking and religions and even different tribes because we had Hon. Jude Idimogu,” she said.
On what qualifies the Speaker for a return, Hon. Meranda said: “Obasa is the best man for the job. The experience, capacity and leadership skills are there and I don’t see anybody matching up to him.
“He will be returning as a sixth timer and I don’t think any of us is on the same pedestal with him. I wish him all the best in the 10th Assembly because he is going to lead us again. He is a fantastic man.”
Also addressing journalists, Hon. Mojeed Fatai, immediate past chairman of the Committee on Public Accounts (local), said the leadership of the ninth Assembly ensured a cordial relationship among members.
“Mudashiru Obasa is going to speak again in the 10th Assembly. He is a man we have all resolved to lead us. When we started four years ago, all of us were elected from the APC and it was because of his effort and the way he handled the House.
“Today, we have 38 members from the APC coming in the 10th Assembly. The success is because of Obasa’s leadership capability. He is the best for the House and we want him to continue,” he said.
On his part, Hon. Temitope Adewale (Ifako Ijaiye Constituency 1), described Obasa as a leader who had made tremendous impact on the members.
“Under Obasa, the executive and legislative arms of government have enjoyed a fantastic relationship and that is why you have developmental growth across the State today. You can also see the bills passed into law.
“With Mr. Speaker coming back and with our governor back, they will give to Lagosians the desired development that they yearn for particularly considering the fact that we now have a President who is from here,” Adewale said.
Speaking on behalf of the 20 first-term lawmakers-elect, Oladipo Olayinka Ajomale, who will represent Oshodi Isolo 2 at the 10th Assembly, said he and his colleagues have resolved to support Obasa as Speaker of the 10th Assembly.
“I can assure you that the 20 of us who are new are fully in support of Speaker Obasa for the 10th Assembly because we have learnt and understudied and we know that this is a man who has proven himself over and over again to be the best man for the job.
“Logically thinking about it, he is the most experienced in the House. So it doesn’t make sense for anyone to come and do trial by error. I stand with him fully and all of us who are new also support the Speaker to speak for us at the 10th Assembly,” he said.
Earlier, the Speaker had commended the ninth Assembly lawmakers for their support which led to the passing of 46 bills, over 120 resolutions and a couple of regulations.
He also presented certificates of meritorious service to the members.
Eromosele Ebhomele
Chief Press Secretary to the Speaker of the Lagos State House of Assembly
Access Bank PLC Expands Global Footprint with launch of French Subsidiary
Access Bank PLC, the flagship company of Access Holdings PLC, has officially launched its subsidiary in Paris, France. The Bank’s operations will focus on trade finance, initially capitalising on flows between Africa and France, particularly Francophone Africa.
Herbert Wigwe, Group Chief Executive Officer of Access Holdings PLC, speaking on the purpose of the Bank’s strategic expansion efforts said, “Access Bank PLC, today, has a very strong presence in the United Kingdom, but coming on the heels of Brexit, there was a need for us to establish a presence in another country in Europe and France provides a very strong platform for us to do so. Beyond that, Access Bank has a great presence in the Francophone world that relies significantly – in terms of trade – on France, so, Access Bank in Paris will work to support trade possibilities and trade finance solutions to businesses in those regions, ranging from large conglomerates to SMEs and more.
“Our range of banking products and services will be a valuable asset for businesses looking to trade internationally, while our corporate and investment banking services will help businesses access capital, manage their cash flow, and mitigate risk. Furthermore, we are confident that the Bank’s trade finance solutions will help businesses to navigate the complexities of cross-border trade, and at the same time, our digital capabilities will make banking more convenient and efficient for all our customers,” he reiterated.
Recognising the critical role of the Bank’s various stakeholders in making the expansion drive successful, Wigwe stressed the value of its customers, shareholders, regulators, and the communities it operates.
“Our successes over the years would be footnotes but for the relationships we have fostered with these critical contributors. In recognition of this, we are committed to building long-term partnerships with all our stakeholders in France – based on trust, transparency, and mutual respect,” he added.
Access Bank’s presence in France represents an important step towards achieving its goal of bridging worlds and connecting opportunities for African businesses. The Bank’s latest stride also lays a marker for realising its recently unveiled 5-year strategic growth plan.
“Over the years, we have demonstrated a strong commitment to deepening the Bank’s presence across Africa and beyond,” remarked Roosevelt Ogbonna, Managing Director, Access Bank PLC, at the launch. “Today, we are proud to have a presence in 18 countries across four continents, serving millions of customers and businesses. Indeed, our expansion drive has been guided by our vision to become the world’s most respected African bank, and by building on our strong track record of innovation, customer service, and social responsibility, we have come one step closer to achieving this goal.
“We remain committed to building a bank that is truly global in scope, yet locally relevant in its approach, and we are excited about the opportunities that lie ahead as we continue to grow and expand our footprint in new markets,” Ogbonna concluded.
Access Bank UK, led by Jamie Simmonds, will oversee the operations of the Paris subsidiary and will effectively become the umbrella company for other representative offices in the country.
With the launch of its operations in France, Access Bank is uniquely positioned to create opportunities for scaled economic growth and development across Africa while helping international investors see the continent as a viable market to do business. To facilitate the flow of capital, goods, and services across borders and support economic growth and development in both regions of focus, the Bank will leverage its expertise in cross-continental trade and its strong network of partners and clients.
