Afribank: Old wine that needs no introduction

Akin Adewakun, Lagos

Sebastian Adigwe, MD, AfribankDESPITE the skepticism that initially greeted its introduction from both within and outside the nation’s financial landscape, the reform carried out in the nation’s banking sector a few years ago by the Central Bank of Nigeria has, no doubt, positively changed the face of banking in Nigeria.

The revolution being witnessed in the sector and the competitive spirit now all pervasive in the industry have been attributed to the CBN-induced reforms. Gone were the days when the weak banks were terrorised and overwhelmed with the huge capital base of the bigger and stronger banks. The recent recapitalisation of the banking institutions has made the nation’s financial landscape a level-playing field where banks now rely on their marketing innovativeness and ingenuity to outwit one another. And with the deluge of innovative products and services being churned out by the nation’s banks on daily basis, the banking public is no doubt getting value for its money.

Afribank Nigeria Plc, one of the nation’s oldest banks, has been one financial institution which has continued to adhere to its vision of establishing a prominent financial institutions in the commercial banking sector and aspiring being the leading provider of investment banking services to retail customers.

A notable financial services brand in Nigeria and indeed Africa, Afribank, since its establishment in 1959 by French investors under the name Banque International Pour L’Afrique Occidental (BIAO), has grown to become a household name in Nigeria.

With its core business revolving around commercial banking and retail investment banking, the bank, which offers products services that appeal to diverse banking customer segments, currently boasts of over 250 Internet-linked branches nationwide.

With a full offshore finance company in Dublin, Ireland, a stockbroking firm, an insurance brokerage firm, a trustees and investment company, an estate development company and a capital market firm, the bank stands out as one of the most diversified in the nation’s banking sub-sector.

As part of its strategic focus, Afribank has investments in a number of companies in the financial and real sectors of the economy, which generate profits in themselves and provide a significant collateral businesses to the bank.

With a good brand recognition and over 250 branches, whichs it the nation’s fourth largest bank, its strong essential products such as its e-banking products and strong technology environment, have gone a long way in enhancing the services provided by the bank.

Its reach
With over 250 branches located in strategic areas in Nigeria and the urge to open 50 more branches, the need of the modern-day customers to be mobile and simultaneously conduct their businesses is greatly enhanced. With this, customers can access their accounts in any branch of the bank’s branches.

Products and services
Besides the traditional accounts such as the current accounts, savings accounts, domiciliary account and fixed deposit account, other products offered by the bank include Afribank Life Improvement Facility for Every One (A-Life), designed to empower middle level, upcoming and low-income earners to acquire assets and basic household items to improve their quality of lives without having to strain their finances; Afribank School Support Facility (ASSF), which provides easily accessible facility to schools’ proprietors to acquire basic facilities such as buildings, furniture, school buses and other vehicles, laboratories and other vital school facilities. Others include Afribank Educational Savings Account (AESA) and Afribank Vpay Card, which is a debit card used to make domestic payments over the internet. It is the only CHIP and PIN Card in the Nigerian market.

Management
On the board of the bank are seasoned bankers, economists, industrialists and other professionals whose professional skills have been of immense value to the day-to-day corporate direction of the bank. For instance, the Group Managing Director and Chief Executive of the bank, Mr Sebastian Adigwe, is an accountant and banker whose experience in the nation’s financial terrain spans over two decades. A 1986 graduate of Accounting from the University of Lagos, Adigwe, a member of Nigerian Institute of Management (NIM) and Chartered Institute of Bankers of Nigeria (CIBN), also holds a Masters degree in Business Administration.

Financial Performance
The bank, at the end of 2007 Financial Year, was able to grow its fundamentals. Here, the initial challenges of consolidation has been overcome and turned into opportunities by the bank.

The aggressive market development of the group enabled it to record a modest growth in its Gross Earnings, which stood at N27.53 billion this year as against N15.63billion in 2006, an increase of 76.1per cent.The Group also posted a Profit Before Tax of N9.13billion in 2007, compared with N3.98 billion recorded in 2006, an increase of 129.356per cent.

The business expansion activities of the bank earned it more market share in the year. Total deposits and other accounts grew by 54.82per cent from N91.89 billion in 2006 to N142.27billion in 2007.

Awards and achievements.
Its operations during the year attracted recognitions both locally and abroad. The bank received the Industrial Deal of the Year, presented to it by Project Finance International , UK, for its participation in loan syndication for the United Cement Company, Nigeria. It also won the Corporate Excellence Award in Education from the Post Graduate School (Banking and Finance Programme), University of Ibadan, and an Award for Excellence for Sports Development from the Grassroots Sports Federation of Nigeria, and Best Clearing House Awards from the Sokoto and Enugu CBN zonal offices.

Some of the bank’s achievements include the creation of e-NYSC, an information portal for corp members in 2007, Acquisition of Leadbank Plc and Assurance Bank Plc in 2006, received $20million Letter of Credit Facility from Standard Bank of London in 2006, and was the first to create a one-stop e-service solution centre, among others.

Wema Bank: Shareholders call for Omoyeni’s return

Friday Ekeoba, Lagos

Adebisi OmoyeniShareholders across the country have expressed disappointment with the way the Central Bank of Nigeria (CBN) has so far handled the Wema Bank crisis, while calling for the recall of Adebisi Omoyeni and his reinstatement as the bank’s group managing director.

Speaking with our correspondent in Lagos over the weekend, the National Coordinator of the Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu said, “I think a responsible agency of the government should carry out the directive from the number one citizen of the country and anything contrary to that is an aberration.”

On the non-recall of Omoyeni from leave, he declared, “I think people should carry out instructions, knowing well that the president would not want to give out an instruction that would embarrass Nigerians.

“I don’t know what is the matter causing the non-implementation of instructions, but I think the Federal Government should look into it as anybody could rise up tomorrow to flout its orders, especially now that it is an agency of the Federal Government, something has to done quickly to cushion the effect of this matter.”

He continued, “It is very bad for the person of Mr. President to make an order and somebody disobeyed him without any explanation from any quarter about it. We need to know why this order was not obeyed. If it is fraudulent, they should also let us know that the order was fraudulent and whatever happened to it, we have a right to know.”

According to Nwosu, all the problems in Wema Bank were created by the Central Bank. “So, the Central Bank should be held responsible for any failure in Wema, because if you are a regulator, you must regulate well, and you must not also be part of those jeopardising the laws of the land. I believe as a regulator they also must be very prompt to act on the laws of the land, they must not take the laws into their hands.

“I think, as a regulator, they mishandled the issue of Wemaby bringing a competitor to head a bank which they had not taken over; whose board they had not dissolved. That, on its own, is wrong in approach and action. So these are some of the wrong steps CBN has taken.

On his own part, the Zonal Coordinator of South West Shareholders Association, Chief Aderemi Oyepeju, said, “My stand is that if there is nothing found with Omoyeni, he should be returned with immediate effect.”

“All shareholders with Wema Bank want him to return with immediate effect because what is happening in the bank is a power play and politicking, and I don’t believe that politics should be allowed to ruin the fortunes of the bank.

“Look at the appointment of Aboh, it is not in the interest of Wema Bank, we want them to remove Aboh; if you want to sanitize an organization, you look inward. I am saying this because more that 40 to 50 people in the bank are qualified to run the bank. Why should they bring an outsider to run the bank; it is an aberration to shareholders of the bank.”

He continued: “Agreed, all of them cannot be saints neither can all of them be sinners, so the appointment by the Central Bank of an outsider is very bad. If the man that was supposed to run the bank was found not fit, then you bring another one. It is like a family, when the head is not around, the most senior should stand in the place of the head. Our stand as shareholders is that it is high time that Aboh left.”

On the federal government’s order to the apex bank on the reinstatement of Omoyeni, Oyepeju said, “CBN is an organ of the federal government and its governor must abide by the government’s decisions.

“The governor was appointed by the government. When the governor of an institution now declines the order of he who appointed him, that person is indirectly saying that he has no confidence in the person that appointed him and what he should do is to resign.

“The CBN is not an institution that set up itself, it was created by statute of law in Nigeria and I believe that if the directive of the Federal Government has been listened to, definitely, things would have been different for the bank.

He continued, “Anybody that defies a government’s directive should be sanctioned heavily, because it is a test on the presidency, so nobody, no matter how highly placed, should flout government’s directive. It is government that appointed the Central Bank governor and not the other way round. It is an insult on Nigerians for the CBN to continue to flout the government’s directives.”