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First Bank Expands Board With Three Executive Directors

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First Bank Sympathy Letter

By Aduragbemi Omiyale

Three executive directors have been added to the board of First Bank Nigeria Limited, the flagship subsidiary of FBN Holdings Plc.

The financial institution said Mr Olusegun Alebiosu will join the board as the Executive Director, Risk Management & Executive Compliance Officer, Mr Oluwatosin Adewuyi as the Executive Director for Corporate Banking, and Mr Ini Ebong as the Executive Director for Treasury and International Banking.

Prior to this appointment, Mr Alebiosu was a Group Executive and the Chief Risk Officer of the First Bank Group, a role he had occupied since he joined the bank in September 2016.

As CRO, he was the Executive accountable for enabling the efficient and effective governance of significant risks, and related opportunities in First Bank and its subsidiaries.

Under his leadership, there has been a risk management transformation at the bank, significant improvement of our credit underwriting process with vintage NPL ratio of less than one per cent, reduction of our NPL ratio to sub-7% levels, significant recoveries, exemplary franchise protection and excellent stakeholder management.

In addition to his role as CRO, Mr Alebiosu is also the Executive Compliance Officer of the bank with the responsibility of ensuring the Bank complies with extant rules and regulations. With a career that has spanned about 30 years, he is an outstanding professional with a demonstrated commitment to the success of the franchise.

Prior to First Bank, he was the Chief Credit Officer at the African Development Bank (AfDB) where he led risk teams in various areas including financial institutions, trade finance (to support African Banks), and critical infrastructure projects across Africa.

Before then, he worked at the United Bank for Africa Plc in various risk capacities including credit policy, credit risk management, agriculture, trade, retail and specialized lending.

On his part, Mr Adewuyi was Group Executive, Corporate Banking where he was responsible for the bank’s corporate banking business following the exit of the previous Executive Director.

He was until recently Executive Director of FBNBank UK, a role he occupied when he joined the First Bank family in 2017. Under his leadership, the corporate banking franchise achieved significant growth in assets and net revenue.

He was also able to reposition the business and portfolio of FBNBank UK in line with the lender’s revised strategy for the franchise and pioneered collaborations between First Bank, FBNBank UK and its African subsidiaries via the Global Account Management program.

He is an international banker with over 20 years of experience covering sub-Saharan Africa. Tosin joined First Bank from J.P. Morgan, where he was a Managing Director and had been Head of its Nigeria Business for eight years.

In his role, he led the execution of J.P. Morgan’s strategy for Nigeria and managed key client relationships including the Central Bank of Nigeria, Ministry of Finance, Debt Management Office, Nigerian Sovereign Investment Authority and top-tier Nigerian Banks.

In addition to his Nigerian role, he was also the Head of Treasury Services (Cash Management and Trade) for Sub-Saharan Africa with prior roles in trade finance, corporate banking, debt capital markets, financial institutions and correspondent banking.

Prior to J.P. Morgan, he worked at Standard Bank, London for about five years and qualified as a Certified Chartered Accountant during the four years he worked at KPMG.

As for Mr Ebong, he was the Group Executive in charge of the Treasury and International Banking at First Bank. In this role, he is responsible for the bank’s Treasury business, its international banking franchise across sub-Saharan Africa covering six countries (Democratic Republic of Congo, The Gambia, Ghana, Guinea Conakry, Senegal and Sierra Leone), the bank’s custody business, servicing local and international clients, and the bank’s financial institutions business, which covers its relationships with domestic and international correspondent banks, multilateral agencies, development finance institutions and non-bank financial institutions. Until recently, he was also responsible for the Structured Trade and Commodity Finance business.

Prior to joining First Bank, Mr Ebong was the Head of African Fixed Income and Local Markets Trading for Renaissance Capital. Prior to joining Renaissance Capital, he had worked in Citigroup for 14 years, predominantly in a market-facing and trading role where rose to the Head of Sales and Trading, and Country Treasurer.

Throughout his career in financial services spanning more than 25 years, he has had extensive experience in investment banking, financial markets, equity and debt capital markets businesses, with work experience that covers trading, treasury, balance sheet management and finance.

Aduragbemi Omiyale is a journalist with Business Post Nigeria, who has passion for news writing. In her leisure time, she loves to read.

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Banking

First Bank Stops Use of Naira Cards for International Transactions

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Naira Cards for International Transactions

By Dipo Olowookere

From Friday, September 30, 2022, customers of First Bank will no longer be able to use their Naira cards for international transactions, Business Post reports.

This development is triggered by the scarcity of foreign exchange (forex) in Nigeria, the financial institution confirmed in a message to its customers on Wednesday.

The lender disclosed that for customers to complete their offshore transactions, they would have to obtain multicurrency cards, which allow them to spend up to $10,000.

Nigerian banks have struggled to meet the FX demands of their customers because of a shortage in supply despite the prices of crude oil rising in the global market.

The government had blamed attacks on oil facilities in the Niger Delta region of the country as well as oil theft as the reason for low crude oil output.

It was reported that last month, the oil production of Nigeria went down below one million barrels, making it difficult for the nation to earn more from crude oil sales.

On Tuesday, Business Post reported that commercial banks in the country now opt for electronic transfer of forex into accounts of forex users instead of cash disburse due to a shortage in supply.

“Due to current market realities on foreign exchange, you will no longer be able to use the Naira Mastercard, Naira Credit Card, our Virtual card and Visa Prepaid Naira card for international transactions. This will take effect on September 30, 2022.

“Please use your Visa Debit Multicurrency Card, Visa Prepaid (USD) Card and Visa Gold Credit Card to continue transacting abroad with limits of up to $10,000,” the message sent by First Bank to its customers today stated.

Despite the apparent FX supply crisis in the country, the Central Bank of Nigeria (CBN) has maintained that those who genuinely need forex should go through the official market, which is primarily the commercial banks.

The apex bank had maintained that sourcing FX through the black market was illegal. It also described the platform as insignificant in the FX market, saying it only accounts for 5 per cent of the landscape.

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Banking

PecanTrust Disburses N5bn Loans to Customers in Six Years

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PecanTrust Microfinance Bank

By Aduragbemi Omiyale

The fast-growing financial institution, PecanTrust Microfinance Bank, has disbursed loans worth N5 billion to customers in six years.

The lender started operations six years ago after it received a licence from the Central Bank of Nigeria (CBN) to operate as a financial institution saddled with the responsibility of giving loans to Nigerians.

Since it received this authority to operate as a microfinance bank, PecanTrust has focused on alleviating poverty by providing access to finance for affordable social infrastructure services, including healthcare, education and housing as well as prioritising women-led businesses.

In this period, the lender has remained consistent in its focus on increasing financial inclusion in Nigeria and reaching unbanked customers nationwide.

In line with this mission, the bank has designed tailored savings and loan products for these customers, such as the Pecan Ajo savings and other Pecan SME finance loans. The bank has also implemented an aggressive strategy to introduce its customers to its agency banking platform nationwide.

In addition to its financial inclusion strategy, the bank recently unveiled its USSD application with value-added features and service delivery levels to the market.

“We are delighted to have had a positive impact through our financial inclusion strategies. Currently, about 60 million adults are unbanked in Nigeria, which makes it the 5th largest country of unbanked citizens globally.

“So much still needs to be done in the industry to support the CBN towards the achievement of its financial inclusion goals.

“This is why we have continued to intensify efforts to reach the unbanked and ultimately help alleviates them from poverty. We believe with continuous steps in this direction, we can achieve our objectives,” A director of PecanTrust, Mr Taiwo Oshinusi, stated.

To accelerate growth and continue to support these strategic initiatives, and improve delivery to customers, PecanTrust has evolved into a hybrid microfinance business, building on expertise and its experience with the traditional banking business model, the bank is poised to launch its digital application in a few months to scale its business and reach a wider customer base while providing access to cheaper, faster, reliable financial services.

PecanTrust Microfinance Bank offers diversified savings and loan products and continues developing new products to meet the demand of the market.

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Banking

Nigerian Banks Resort to Electronic FX Payments as Cash Shortage Worsens

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electronic FX payments

By Dipo Olowookere

The scarcity of foreign exchange (FX) in the financial system in Nigeria has forced commercial banks operating in the country to resort to payment of forex directly to the domiciliary accounts of customers or debit cards.

Business Post keenly observed that this is a new system the financial institutions are devising to manage the FX crisis the country is battling with at the moment.

Currently, it is very difficult for customers to get hard currencies in cash from banks for amounts more than $500.

At one of the banks visited by this reporter in the Egbeda area of Lagos State, customers were told to provide a domiciliary account of the bank for the requested forex to be transferred into.

In a situation where a customer is unable to provide one, a forex trader stationed in the bank is approached. After the exchange rate is agreed upon, the money is transferred into his account, and the Naira equivalent is given to the customer.

One of the customers who spoke with this newspaper said, “This is what this bank has been doing for a while now. They tell you there is no cash (FX). I have been coming here for weeks to get just $400, but it has not been successful.

“It was later suggested to me to provide a domiciliary account, which must be of the bank for the funds to be transferred. Since I do not have one, I had to use the Mallam’s account. We agreed on a rate, which is N7 lower than what is obtained outside, but I had no choice.

“When I asked him how he would get his forex in cash, he laughed. I know your guess is as good as mine. I hope this is another way these banks are milking us because I was asked to fill cash collected by me when in actual sense, I was not given the cash.”

Recently, Access Bank sent an email to its customers, informing them that FX payments would only be made via the Access Travel Debit Card.

“We would like to once again inform you that we disburse authorised personal and business travel allowance FX requests through our Access Travel Debit Card.

“The Access Travel Debit Card has been created to enable you to transact seamlessly when you travel abroad,” a part of the message sighted by Business Post read.

Another lender, First Bank, also sent a similar message to its customers when it said, “The full Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) ($4,000 and $5,000) respectively will now be disbursed into your First Bank Travel Card.”

A banker in the forex department of one of the old generation banks, who craved anonymity, told Business Post that the electronic FX payments to customers were obviously deployed to manage the shortage of cash in the system when efforts to ration the hard currencies failed.

A financial analyst based in Lagos, Mr Sunday Kalu, said this trend will continue until after the 2023 general elections.

“What we are witnessing at the moment is caused by the political actors. They have mopped up available FX in the financial system, and banks find it challenging to meet customers’ demands.

“The electronic forex transfer into customers’ accounts is another way to manage the crisis, and I support them. Don’t forget, the USD is not our legal tender, and there should not be any need for you to have the cash with you here except the Naira. So, I support this system,” Mr Kalu told Business Post.

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