Banking
Microfinance Banks Need Efficient Succession Policy for Survival—Phillips Consulting
By Adedapo Adesanya
Nigerian Microfinance Banks (MFBs) could face a number of problems if a good succession plan for its leaders are not put in place, one of the leading consultancy companies in Nigeria, Phillips Consulting Limited (pcl.) has said.
An associate partner at pcl, Ms Foyinsola Akinjayeju, said this during a presentation titled Steps for Effective Succession Management at a recent conference organised by the Lagos State Chapter of the National Association of Microfinance Banks.
She noted that MFBs could face power tussles issues if an inefficient leadership process is not place and could lead to sudden exits across different grades and functions; loss of tribal knowledge; costs of abrupt hiring; uncertainty; chaos; damage to the company’s culture; reduced performances which may culminate in business failure.
According to Ms Akinjayeju, “Preparing the next generation of leaders has become more imperative than ever. Some companies meticulously follow procedures of “next-in-line” for leadership roles yet their new leaders are ill-prepared for the role and end up as corporate placeholders, at the centre of chaos.”
She advised business leaders not to restrict their planning scope to the present alone, but rather to ask themselves if their team were the best talent for the future, a situation which she noted could be influenced through effective succession management.
Distinguishing between succession management and more common practices of succession planning and replacement planning, she cited their areas of differences around Focus; Successors; and Time Investment required.
Ms Akinjayeju noted that replacement planning focuses only on managerial positions and identifying talent to replace individuals who leave such positions while succession management, on the other hand, is concerned with corporate-critical positions across grades, profiling the talent (mix of job skills and unique competencies) required for such positions, identification of the suitable talent, deliberate development of the identified talent, and regular monitoring of the process to measure its effectiveness in respect of the strategic objectives of the organisation.
She said organisations which seek long-term sustainability must adopt a robust succession management system while also focusing on talents who demonstrate high potential.
On his part, Mr Rob Taiwo, the Managing Director of pcl, highlighted the importance of character, which he indicated as a better determinant of performance over competence when hiring a leader.
“Challenges often arise in the seemingly small areas like stakeholder engagement, culture, or perception and the one thing leaders need to keep going is grit,” he said.
He also added that there was the need for a shared purpose between the Chief Executive Officer (CEO), the Chairman, and the board. He stressed the importance of appropriate timing and extolled authentic leadership as a key success ingredient, admonishing CEOs to give guidelines only and not impose their methods on their successors.
By Modupe Gbadeyanka
A bank account targeted at Nigerians who are 50 years and above known as Senior Citizens Account has been introduced by Stanbic IBTC Bank.
Senior Citizens Account is an all-encompassing banking solution designed to meet the immediate and long-term financial needs of individuals approaching retirement or those already in their retirement phase.
The package comprises comprehensive features such as zero account opening balance, zero account maintenance fee, free debit card and chequebook, health insurance and telemedicine, wills service and funds management.
Stanbic IBTC Bank described it as an innovative solution exclusively designed for customers in the age category and is expected to serve over 15 million Nigerians estimated to be within this age range, according to Index Mundi.
Through this very thoughtful banking service for the elderly, the financial institution can provide tailored financial services solutions that meet the special needs of this unique clientele.
According to the chief executive of the lender, Mr Wole Adeniyi, it is an excellent opportunity for people who are nearing retirement to consolidate their banking needs, investment management, and wealth transfer across generations and for retirees who rely on Stanbic IBTC Pension Managers to manage their pension funds, to also use Stanbic IBTC Bank to receive their gratuity payments while enjoying excellent benefits.
He said the Senior Citizens Account aims to provide people in their 50s and older with essential support and services, ensuring their financial well-being and stability.
Senior Citizens Account is not just another banking product; it represents a paradigm shift towards creating a banking experience that significantly enhances its users’ lifestyles.
It is crafted to offer senior citizens a sense of financial security, unparalleled convenience, and an improved sense of well-being.
This commitment to exceeding customers’ expectations is further demonstrated by the bank’s initiative to introduce cutting-edge features aimed at making banking services more accessible and convenient.
The financial institution has substantially improved its technical infrastructure, reducing system downtime from 3 per cent to a mere 0.5 per cent.
This reduction in downtime confirms its dedication to providing reliable and uninterrupted service, ensuring that customers’ banking experiences are smooth and hassle-free.
Through these initiatives, Stanbic IBTC Bank reaffirms its commitment to innovation and customer satisfaction, aiming to bridge the gap between modern banking and the evolving needs of the ageing population.
By developing products like the Senior Citizens Account, the Bank addresses a previously overlooked market segment and sets new standards in offering tailored financial solutions that contribute to their overall quality of life.
For individuals interested in discovering more about Vitality Plus and the enrollment process, information is readily available at www.stanbicibtcbank.com or at any Stanbic IBTC Bank branch nationwide. This initiative is part of Stanbic IBTC Bank’s ongoing efforts to refine and adapt its services to meet the evolving needs of its customers better, ensuring that every client, regardless of age, has access to top-tier banking solutions that reflect their lifestyle and aspirations.
By Modupe Gbadeyanka
Nigeria’s Vice President, Mr Kashim Shettima, has expressed his delight over the unicorn status attained by Moniepoint Incorporated in October 2024 after it secured a $110 million funding package from Google.
Speaking when the company paid a courtesy visit to him at the Presidential Villa recently, the VP said he was happy with the growth trajectory of the financial technology (fintech) company, charging the team not to rest on its oars.
He promised to be the “chief promoter” of Moniepoint because the firm has become the pride of the country and must be supported by all.
Mr Shettima urged the company to continue expanding its global footprint, referencing his ongoing support for similar initiatives such as Amal Hassan’s Outsource to Nigeria project.
The Vice President described Moniepoint as a “kaleidoscope of colours” because of the diversity of its team, saying it reflects the beauty of Nigeria’s multicultural and multi-regional identity.
He was particularly pleased with the inclusion of individuals from various regions and backgrounds, including a notable representation of women in leadership and operational roles.
However, he charged the organisation and others to ensure stronger auditing measures to prevent misuse of the platform, especially by fraudsters and criminal elements, tasking them to remain vigilant and proactive in addressing these challenges.
Earlier, the chief executive of Moniepoint, Mr Tosin Eniolorunda, thanked the federal government for its dedication to digital innovation and financial inclusion.
He emphasized Moniepoint’s commitment to Nigeria’s financial ecosystem, stating that the fintech giant has grown into Africa’s latest unicorn this year, a testament to its resilience and innovation.
“At Moniepoint, we are big believers in driving collaborations across the entire eco-system and this is premised on collaboration being the cornerstone of progress.
“Our engagement here underscores our intentionality to enhance government business relationships in a way that powers the dreams of millions of many more Nigerians.
“Together, we can unlock opportunities, transform lives, and build a more inclusive economy for all,” Mr Eniolorunda, who led the team comprising the Managing Director of Moniepoint Microfinance Bank, Mr Babatunde Olofin; the Vice President for Corporate Affairs at Moniepoint, Didi Uwemakpan; the SVP for Investor Relations and M&A, Ross Strike; the Head of Partnerships, Efemena Ogie; the Regional Manager for North West, Abdulmumin Tijjani; and the Partner at Lightrock Global, Ravi Sharma, said.
By Adedapo Adesanya
The Central Bank of Nigeria has set a minimum trade value of $100,000 for interbank foreign exchange trading via the Electronic Foreign Exchange Matching System (EFEMS), which is set to go live on December 2.
This was contained in a new directive dated November 25, 2024, and signed by CBN’s Director of the Financial Markets Department, Mrs Omolara Duke.
The circular also noted that the development is part of efforts to ensure transparency, efficiency, and compliance within Nigeria’s FX market.
The EFEMS is designed to streamline interbank FX trading, reduce counterparty risks, and ensure adherence to CBN regulations.
The statement also said CBN has designated Bloomberg’s BMatch as the official order-matching platform for interbank transactions, with trading hours set between 9:00 am and 4:00 pm West Africa Time on business days.
The apex bank also said the $100,000 minimum tradable amount comes with incremental clip sizes of $50,000.
The EFEMS is also limited to spot FX transactions involving the Nigerian Naira and the United States Dollar. This means transactions occur “on the spot” or close to the trade date.
The CBN, however, retained the discretion to introduce other currency pairs when deemed necessary.
The guidelines document read, “All trades consummated on EFEMS are binding unless cancelled by mutual agreement of both parties with written approval from the CBN.
“The minimum tradable amount is US$100,000.00, with incremental clip sizes of US$50,000.00.
“Participants must set credit and settlement limits for other counterparties in the system. Transactions exceeding these limits will not be executed.
“Participants must have adequate credit and settlement limits set for the CBN as its counterparty bank.
“Participants are required to comply with the Nigerian Foreign Exchange Code and other CBN regulations.”
The apex bank noted that participation in the EFEMS is limited to authorised dealer banks while other institutions wishing to join the platform must first obtain prior approval.
These entities are also required to execute agreements with the CBN-approved platform provider, maintain accurate profiles, and operate within prescribed credit and settlement limits.
Withdrawal from the platform must be preceded by a 30-day notice, along with the resolution of any outstanding obligations.
Also, trades conducted via the platform will remain anonymous until matched. Counterparty details will only be revealed once transactions are concluded and are in line with settlement protocols.
Transactions exceeding set limits or conducted outside EFEMS parameters must be reported promptly and logged onto the FX blotter within 10 minutes.
The CBN emphasised that it will closely monitor all transactions on EFEMS to ensure market integrity and transparency.
Participants are also required to submit daily reports detailing trade volumes, settlement statuses, and counterparties.
The CBN discloses that it also reserves the right to publish aggregated or disaggregated trade data for market analysis, subject to confidentiality agreements.
Any violations of the EFEMS guidelines or related regulations will attract strict penalties, including the suspension or revocation of access rights.
The CBN further stated that it will periodically review the platform’s operations to ensure efficiency and compliance with its directives.
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