The Central Bank of Nigeria (CBN) has imposed a cybersecurity levy of 0.5 percent on all electronic transfers in the country following the enactment of the Cybercrime (Prohibition, Prevention etc) (Amendment) Act 2024.

In the circular announcing the levy, the apex bank stated that the levy shall be remitted to the National Cybersecurity Fund (NCF), which shall be administered by the Office of the National Security Adviser (ONSA).

According to the CBN, 16 items were exempted from the levy. These include loan disbursement and repayments, salary payments, intra-account transfers within the same bank, interbank placements, banks’ transfers to CBN and vice versa, letters of credit, cheques clearing and settlements etc.

The Alternative Bank, in collaboration with TotalEnergies, unveils an innovative partnership that aims to bring vital banking services directly to underserved communities nationwide through their pioneering Branch in a Box initiative.

These mini-branches will be strategically located within select TotalEnergies stations across the country, offering enhanced accessibility and convenience for customers seeking essential financial services.

The Branch in a Box initiative addresses the challenges faced by remote communities, with limited access to vital financial services.

Mohammed Bashir Yunusa, Director of Products & Innovation at The Alternative Bank, lauded the initiative as innovative and timely, emphasizing its role in alleviating the difficulties associated with accessing financial services.

According to Yunusa, “The Branch in a Box provides convenient, accessible banking services within trusted and familiar locations, staffed with well-trained customer service personnel to assist everyone.”

The Branch in a Box functions like traditional branches, offering a comprehensive range of banking services, including account opening, cash withdrawal and deposit, fund transfers, card pick-up, access to interest-free credit, and more.

The inaugural batch of Branch in a Box locations welcomes customers at TotalEnergies stations in Ojuelegba, Yaba, Fadeyi, Oshodi, and Ojota Lagos, with a nationwide rollout scheduled in the coming weeks.

Expressing enthusiasm about the collaboration, Yunusa remarked, “The Alternative Bank and TotalEnergies have a shared commitment to fueling financial inclusion and supporting the communities they serve. We are therefore thrilled to partner with TotalEnergies to launch this innovative initiative.”

Abdulahi Umar, General Manager at TotalEnergies, echoed these sentiments, stating, “We are committed to providing our customers with exceptional service and convenience. So, partnering with The Alternative Bank allows us to enhance our offering of a truly integrated experience to our customers and communities.”

Experience the future of banking by locating a Branch in a Box near you at www.altbank.ng.

About The Alternative Bank

The Alternative Bank is at the forefront of the non-interest banking sector, offering tailored financial solutions that resonate deeply with individuals seeking a fresh and innovative approach to wealth advancement and accumulation. With a commitment to transparency and empowerment, The Alternative Bank leads Nigeria’s non-interest banking movement by empowering individuals towards their goals, aspirations, and future potential.

United Bank for Africa Plc (UBA), Africa’s Global Bank, released its financial results for the first quarter ended March 31, 2024, showing very strong growth across key performance measures.

The Group’s results, which were released to the Nigerian Exchange Limited (NGX) on Friday May 3rd, 2024, saw outstanding year-on-year increases: Gross Earnings rose by 110%, from N271.1billion to N570.2 billion; Interest Income grew by 130%, to N440.7 billion.  Operating Income increased by 115%, from N175.7 billion in 2023, to N378.59 billion.

Further consolidating the record performance delivered in the Group’s 2023 Full Year Audited Financials, UBA again saw Profit Before Tax rising significantly by 155% from N61.7 billion in Q1 2023, to N156.34 billion in Q1 2024; while Profit After Tax jumped from N53.5 billion to N142.5 billion, representing an impressive rise of 165% year-on-year.

Commenting on the results, UBA’s Group Managing Director, Oliver Alawuba, said the Group delivered strong first quarter performance, building on the solid momentum of 2023, as well as the ongoing execution of its long-held strategy of customer focus, geographic diversification and effective risk management and governance.

He said: “Our record Q1 profit before tax was delivered with triple digit gross earnings growth, supported by very strong interest and non-interest income. Fees and Commissions rose by 118% year-on-year on the back of improved efficiencies and continued digital adoption.  This has helped drive improvement in efficiency and customer satisfaction, with the Group’s cost-to-income ratio held at 57.8%.”

“The Group’s balance sheet grew steadily with Total Assets increasing by 23% to N25.4 trillion. Customer deposits closed at N18.4 trillion, recording a 23% increase year-on-year, largely attributed to growth in current accounts and savings accounts.”

“Our unwavering commitment to sound governance, robust risk management, and financial strength positions us for continued growth, while we contribute meaningfully to inclusive economic development across our network.”

Also speaking on the performance, UBA’s Executive Director, Finance and Risk, Ugo Nwaghodoh, said the Group’s operating results for the quarter showed the actions taken to enhance the Group’s performance continued to deliver.

He said: “Our first quarter results highlight our relentless customer focus and the strength of UBA’s geographic and product diversification, with good performance across all our regions.  We continue to differentiate ourselves across all key financial metrics, with a keen focus on high-quality risk adjusted revenues and cost discipline, while maintaining very sound asset quality. “

“We remain committed to reducing both interest expense and operating expenses and expect to make steady progress as we move through the year toward our stated profitability targets,” Nwaghodoh stated.

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than twenty-five million customers, across over 1,000 business offices and customer touch points, in 20 African countries and across 4 continents.

With presence in the United States of America, the United Kingdom, France and the United Arab Emirates, UBA connects people and businesses across Africa through retail; commercial and corporate banking; innovative cross-border payments and remittances; trade finance and ancillary banking services.

The Small and Medium Enterprises (SMEs) in the country have been advised to embark on brand repositioning to survive the current competitive environment.

General Manager, Enterprise Marketing, MTN Nigeria, Charles Okonkwo, made this submission in his presentation titled: Positioning your brand for a success in a competitive market, delivered at the Ecobank MySME Growth Series webinar. He stated that it was important for SME promoters to play closer attention to their brands to foster deeper connections with customers and differentiate them in the crowded marketplace.

According to him, “navigating the intricacies of a fiercely competitive market, SMEs must know how the brand is perceived by the target customers. They must humanize and position to make strong brand statements. Ultimately, success in a competitive market hinges on the ability to carve out a distinctive and resonant brand identity, positioning the brand strategically, and effectively managing resources to achieve desired outcomes.”

He explained that a brand is not about the logo or tagline but everything the company stands for and how it shows up at all times, adding that customer feedback and engagement was imperative to ascertain the brand’s strengths and weaknesses. Mr. Okonkwo further called on SMEs to leverage digital and traditional channels to reach their target customers to share their stories and reinforce their brand promise, listing the core areas of strengths and competitive advantage such as price, service delivery, innovation, and brand strength as product differentiation to address customers’ ‘unmet’ and emotional need.

Ecobank MySME Growth Series which started in February this year is designed to empower SME operators across the country. It is part of the bank’s commitment to train over 1 million SME operators in various sectors of the economy in 2024.

The training will provide resources for starting a business, registration processes, industry statistics, and essential considerations for running a business. The series cover key topics such as accounting, credit, sales & marketing, taxation, and inventory management.

Additionally, articles on key topics like increasing sales, advertising ideas, business management practices, case studies, and leveraging technology will be provided.  Ecobank also plans to launch an SME Mentorship program to collaborate with successful entrepreneurs.

Taken together, the MySME Growth Series reflects Ecobank’s dedication to fostering growth and success within the SME community.

PHOTO CAPTION:

L-R: Dr. Agada Apochi, Group MD/CEO, Unified Payment Services Limited; Mrs. Adekunbi Ademiluyi, MD/CEO, HumanManager Limited; Dr. Umaru Kwairanga, Group Chairman, Nigerian Exchange Group (NGX); Prince Cookey, Publisher/Editor-in-Chief, Business Journal Media Group and Mrs. Joy Utubor of Securities & Exchange Commission (SEC Nigeria) at the maiden Nigeria Fintech & Financial Inclusion Roundtable 2024 in Lagos.

The need to leverage on financial technology (Fintech) to promote financial inclusion to enhance the well-being of Nigerians and ensure sustainable economic growth took the centre-stage at the maiden Nigeria Fintech & Financial Inclusion Roundtable 2024 organised by Business Journal Media Group in Lagos.

Experts at the event with the theme, the ‘Role of Fintech & Financial Inclusion in Citizen Empowerment and Economic Growth’ stated that proper leverage of fintech will enhance the economy of the nation and take Nigerians out of poverty.

Delivering the keynote speech at the event, Dr. Agada Apochi, Group Managing Director/CEO, Unified Payment Services Limited, stated that the large number of Nigerians with active mobile phones presents an opportunity for fintechs to bring Nigeria out of poverty.

“There are more Nigerians with telephones than those with bank accounts. The task for fintechs is to leverage the power of financial technology to deliver financial services to the excluded, such that they are not only financially included, but also economically included. Economic growth and financial inclusion are closely related. We cannot sustain the impact of financial inclusion without prioritizing economic inclusion. Beyond achieving individual or organizational economic growth, we can lift millions of Nigerians out of poverty by including them economically and financially”, he assured.

Apochi stated that financial technology has transformed the way things are done, by simply making transactions easier, faster, and more seamless. He stated that for Nigeria to achieve sustainable economic development, the issue of identity must be given attention.

Contributing, Mrs. Adekunbi Ademiluyi, the Managing Director/CEO, HumanManager Limited, opined that financial inclusion starts with identity, adding that when an identity of an individual is known, then one can open an account with the person.

She noted that Nigeria started well with financial inclusion, though, she observed that it has not yet gotten to where it should be, but pointed out that going by the way the fintech companies are working to ensure that every Nigerian is included, Nigeria will get there.

“We have started well in Nigeria. We can’t compare ourselves with other countries but we are getting there. There are companies that are doing a lot. The fintechs are going to places you and I could not reach before. Even the banks before were trying to compete with the fintechs but they have understood that there is no need of competing with fintechs, rather, they should sign an agreement and ensure that fintechs go out to do their job of going out to gather individuals and ensure they open accounts”, she said.

In his opening remarks as Chairman of the occasion, Dr. Umaru Kwairanga, the Group Chairman of Nigerian Exchange Group (NGX), assured that by leveraging cutting-edge technologies like mobile platforms, big data analytics and distributed ledger systems, fintech has the power to democratise finance, breaking down barriers and extending access to financial services to the underserved and unbanked.

He stated that NGX Group is strategically focused on leveraging fintech success in the capital market, adding that it recognised the potential of fintech in boosting retail investor participation, which is aimed at ensuring that the average Nigerian benefits from the myriad of opportunities available for wealth creation in the capital market.

According to him, to enhance access to the market for retail investors, the NGX launched the USSD code *5474# in partnership with leading telcos, which has gathered commendations from stakeholders. Dialing the code, according to him, enables investors to access stock prices, daily gainers and losers and even initiates the process of opening a trading account.

“We are also collaborating with technology companies and partners to develop a state-of-the-art platform to support digital public offerings. Our track record in this area is commendable, as we saw over 150,000 new retail investors participate in the capital market during the MTN public offering in 2021. The NGX Group is also working closely with regulators and the government on bringing new products to the market, such as tokenized assets with blockchain technology and depository receipts”, he assured.

Speaking on concerns consumers have about fintech, Dr. Bode Oguntoke, the Group Head of Audit, FBN Holdings Plc, said that consumers are often not comfortable with the fact that there is no physical location where they can go for complaints or concerns about their accounts.

Some consumers he said, can’t leave their money in these fintechs because they fear they might lose it. Proffering solutions, he said there is need to truly empower the populace and ensure there should be full disclosure and transparency in charges.

He insisted that there should be a clear breakdown of all fees, adding that terms and conditions should be in plain language without any technical jargon.

Oguntoke added that the Central Bank of Nigeria (CBN) should encourage uniformity in charges and provide offline channels to obtain further information if necessary. According to him, information should be timely, orderly, enhance transparency and should be understandable.

“Awareness should be created on fraud, pointing out that consumers should be informed of steps to take when they get a fraudulent call or compromise their information among others.”

Earlier in his welcome address, Prince Cookey, the Publisher/Editor-in-Chief of Business Journal Media Group described the Roundtable as an opportunity to further understand the concept of fintech and financial inclusion in the Nigerian financial services industry.

Cookey added that another key objective of the Roundtable is to understand the nexus between banks and fintechs, examine the growth of fintechs in Nigeria in the past 10 years, proffer solutions to their operational challenges and project the future of fintechs in the country.

He promised that the Roundtable would be an annual event going forward.

Dr. Adesola Adeduntan

In a country with short-lived corporate excellence and a handful of centenary companies, hitting 130 years is undoubtedly a significant milestone for Nigeria’s premier financial institution, FirstBank.

Experience, they say, comes with age. Nothing else aptly defines the consistent growth of First Bank of Nigeria Limited (FirstBank) and its consistent reinvention as the conscience of corporate Nigeria in the face of rising competition from traditional and other shadow banking brands.

Not many living Nigerians can list a single other existing Nigerian company founded in 1894, long before modern Nigeria was created. But FirstBank has not only survived the long 13 decades during which it etched itself into the socio-economic fabric of the country and created a niche as Nigeria’s banker, but it has also pushed itself into the frontier of financial technology evolution, making an inroad into the consciousness of tech-savvy Nigerian youths and the upwardly mobile banking public.

For an organisation that has stuck to Nigeria through thick and thin and enjoyed the monopoly of banking the country from the cradle, long before Africa tasted the beauty of financial system evolution, FirstBank could have been a dinosaur. That would have been easy. But it has chosen the tougher option; challenging traditions, breaking new ground, and constantly refreshing its operational template to stay ahead of the curve.

Established in 1894 as British Bank of West Africa (BBWA) by the late Sir Alfred Lewis Jones, a shipping magnate, FirstBank has been at the forefront of Nigeria’s economic growth and development through its superior banking services and social investments across sectors – manufacturing, small and medium scale enterprise (SMEs), agriculture, oil and gas and just about every other sector that has contributed to the country’s economic discovery.

The history of FirstBank is the history of Nigeria. At some point in its history, it even served as Nigeria’s Central Bank. Today, as the undisputed leader of the country’s brick-and-mortar banking, its nearly 800 business locations across the country give it a robust presence in every local government across the nation.

Of course, in an era of ‘click’ banking, no financial institution is assessed by the strength of its physical banking network alone. Interestingly, the premier institution understands this logic, hence it has emerged as a force in continuously investing in cutting-edge financial technologies. For one, FirstMobile, its digital banking application, has also become a household name in the financial technology ecosystem. In 2015, when the platform was still in its infancy stage, its user base was about 60,000, a number that has soared to over six million (a growth of over 10,000 percent) as of last year. That has contributed immensely to its changed perception from a traditional bank to an innovative digital bank. Today, about 85 percent of its transactions are initiated via digital platforms, according to insights provided by the bank in its public statements.

FirstMobile appears to have hit the bull’s eye in the bank’s reinvention drive and efforts to appeal to younger demographics. But the platform itself is only one of the potpourri of telecommunications-driven initiatives it has taken on to get young depositors on board. FirstOnline users have also grown from about 90,000 to over one million in less than a decade just as its USSD banking, which targets feature phone users, is even more successful with users increasing by close to 3,000 percent in the last eight years, to about 15 million.

Last year alone, its Firstmonie Agent banking services processed over ₦1.1 trillion in transactions, more than double the amount handled by seven other big banks. Some of its strategic investments in technology include the development of its smart and interactive transaction banking platform known as FirstDirect2.0 and the introduction of the humanoid robot to the banking ecosystem in the country. The smart banking initiatives have been complemented by its Digital Xperience Centres (DXC) which are currently located in Lagos, Ibadan, and Abuja with plans to open more across the nation.

Overall, its digital banking has evolved in both volume and public perception even with artificial intelligence-driven commercials complementing its digital imprints. Ease, convenience and reliability created in recent years have moved the customer base from 0.6 million in 2015 to well over 42 million customer accounts as of 2023. This number, according to the Chief Executive Officer of FirstBank Group, Dr. Adesola Adeduntan, during an interview with The Guardian last year, would double in no distant future as the organisation migrates aggressively to transaction-led banking. In September 2023 the bank’s non-interest income hit ₦293.0 billion, up 111.6 percent in comparison to September 2022 at ₦138.5 billion validating the bank’s commitment to a transaction-based era.

In addition, the number of users on the Bank’s digital channels has grown from about 600,000 users in 2015 to over 23.2 million users in 2023.

On the back of the extensive technology infrastructure overhaul FirstBank embarked on under Adeduntan’s leadership, its digital banking channels have become the most dominant delivery channel with the percentage of customer-induced transactions processed via digital channels increased from about 20 percent to over 90 percent. FirstBank has equally been consistent in its profitability. Its Group profit before tax (PBT) has climbed steadily from 10 billion naira in 2015 to 362.24 billion naira in 2023.

For an organisation that has not only created Nigeria’s banking industry but also dynamically shaped it, there is no reason the brand would not attract the best professionals. It attracted a blend of top Nigerian bankers and became the training ground for young professionals who have contributed to its rich history of corporate leadership. Despite this, Adeduntan who assumed office with a touch of dynamism, clearly understood the meeting point between institutional legacy and modern ‘click’ banking. In close to a decade since he first took over the reins at the Bank, he has brought this to bear, rejuvenating the rich corporate culture of the bank, competing actively in the youth space in both employment and business.

Nigerian banks have grown to become international brands, competing for businesses across Africa, (which they have dominated), Europe, Asia, and other Continents. With its United Kingdom subsidiary (which has a representative office in Paris, France) celebrating its 40th anniversary in 2022, FirstBank has led the revolution. Other subsidiaries of Nigeria’s premier financial inclusion services provider include FirstBank in the Democratic Republic of Congo, Guinea, Sierra Leone, and The Gambia; FBNBank in Ghana and Senegal as well as a Representative Office in Beijing, China.

Indeed, local banks have done well in recent years in opening offshore operations except that most of them are cost-centres, hence the promoters are often accused of ego-seeking and extroversion. And it is true because most of the subsidiaries’ operations have created a gaping hole in the bottom lines of the consolidated accounts of many of the institutions. But FirstBank turned the tide. In 2022, its overseas operations contributed a combined 21.3 per cent to the group’s pre-tax profit. Adeduntan has repositioned the financial institution from purely a Nigerian company to a multinational brand with an African focus but a Nigerian nucleus.

Beyond its name, it has recorded several firsts in the industry it single-handedly created. Some firsts include – the first to be listed on the stock exchange, the first – amongst the existing banks – to adopt the use of ATM and the first Nigerian bank – and second in Africa – to reach the 10 million ATM cards-issued milestone. In addition, FirstBank is leading in AI and robotics with regards to the deployment of Humanoid Robots, in the financial services space in Nigeria. The robots are equipped with Video Banking and Artificial Intelligence (AI), taking on the role of friendly branch staff. The financial institution is the first to foray into arts, food, music, and other lifestyle sponsorships as part of the brand value proposition for clients of all ages.

Speaking on the resilience of the bank at a recent function Adeduntan disclosed what he called the bank’s secret of success: “At FirstBank, our purpose is to enable success, putting our customers and stakeholders at the heart of our business. “For the years of our existence, we have focused on providing excellent financial services to meet the needs of our esteemed customers. We continue to improve on our products and create new ones that suit their specific needs. The reason why we have been successful is our ability to invent and reinvent ourselves. You can only be successful like that when you make your customer the center point of all your actions. That is the secret of our success.”

The bank has demonstrated it is a responsible corporate citizen, playing a catalytic role in the economic and social development of the country. FirstBank’s sustainability/ESG focus and commitments are in three key areas: Responsible Lending, Procurement & Climate Performance; Financial Inclusion & Diversity; as well as Education, Health, and Welfare.

Customers of the financial institution remain a vital element of its business. So, the bank constantly seeks responsible ways to provide lending and investment products and services that meet the customers’ needs, while ensuring that it manages the environmental social and governance (ESG) impacts in the process thus contributing to and promoting overall sustainable growth and development. About N5 Trillion worth of transactions were screened for ESG risks in 2023. The bank has shown its commitment to playing a key role in the transition to a global net-zero economy by decarbonising its operations and value chains, driving climate finance, and promoting climate thought leadership. For example, its partnership with Nigeria Conservation Foundation has seen the financial giant begin 50,000 tree planting with this year 2024 set as the target year for this audacious goal.

FirstBank’s community development initiatives are anchored on its strategic Education, Health, and Welfare pillars. In 2023 alone, FirstBank executed various projects under the Start Performing Acts of Random Kindness (SPARK) initiative with growing impacts across 8 countries, including 60 beneficiary schools with over 150,000 secondary school students, and 30,000 under-privileged people and widows; over N100,000,000 (one hundred million naira) donations covering books and infrastructure for students, food items and clothing for the underprivileged, provision of capital for small and micro businesses.

Its FutureFirst programme in partnership with Junior Achievers Nigeria (JAN) has impacted over 1,000,000 (one million) people across the regions of the country including Lagos, Port Harcourt, and Abuja with the knowledge of financial literacy and entrepreneurship. It has also strategically driven partnerships with over 100 Charities/NGOs including LEAP Africa; International Women Society; UNGC; UN Women; and Junior Achievement Nigeria. Following the COVID-19 lockdown, FirstBank stepped in to donate cash (over 1 billion naira) and food to support the government in the fight against the pandemic. It also provided an innovative e-learning initiative enabling the education of one million Nigerian students to drive sustainable efforts towards improving education for all. In partnership with the Lagos State Employment Trust Fund (LSETF), it launched a N5 billion LSETF-First Edu Loan scheme to cushion the impact of the COVID-19 pandemic on low-cost private schools in Lagos State.

For 30 years, FirstBank has remained a sponsor of the annual Nigerian Economic Summit, organised by the Nigerian Economic Summit Group, a think tank group with a mandate to promote and champion the transformation of the Nigerian economy into a private sector-led economy. It is known for other sponsorships including, the Kaduna Georgian Cup Polo Tournament, now in its 103rd year, which is perhaps the longest-standing sports sponsorship in the world. FirstBank is also a long-standing sponsor of the Lagos Amateur Open Golf Championship at the Ikoyi Club, a property it has faithfully sponsored for 62 years.

The bank has played a crucial role in empowering entrepreneurs, women, students and the rapidly growing creative industries locally, which are gaining global recognition. Its strategic interventions through DecemberIssaVybe, FirstGem, SPARK, FirstBank Women Network and numerous other campaigns have been impactful, especially in addressing some key United Nations Sustainable Development Goals (SDGs).

FirstBank has demonstrated its commitment to Diversity through policies, partnerships, and initiatives, such as its employees’ ratio of female to male (39 percent:61 percent); 32 percent women in management, and 11 women on the Board of Directors across the FirstBank Group as well as various initiatives aimed at addressing the gender gap and increasing participation of women at all levels within the organization.

In addition, the Bank’s membership of the UN Women is an affirmation of a deliberate policy that is consistent with UN Women’s Women Empowerment Principles – Equal Opportunity, Inclusion, and Non-discrimination. And there have been rewards via awards for its leadership and life-changing initiatives.

The recent ones include Best Corporate Bank at the recent Euromoney Awards for Excellence, Nigeria 2023; Best Corporate Bank Western Africa 2023, by Global Banking and Finance; Best Internet Banking in Nigeria 2023, by International Business Awards; Most Innovative Banking Brand in Nigeria, by Global Brands Awards; the Financial Institution of the Year 2023, by Afreximbank Pan-African Business and Development; Best CSR Bank Western Africa 2023 by Global Banking and Finance Magazine; Market Leader Nigeria in ESG – Euromoney Market Leaders 2022.

For six consecutive years (2011 – 2016), FirstBank was named ‘Most Valuable Bank Brand in Nigeria’ by The Banker Magazine of the Financial Times Group and ‘the Best Retail Bank in Nigeria’ from 2011 to 2018, an award of the Asian Banker International Excellence in Retail Financial Services Awards.

At the heart of FirstBank’s success story – which includes enabling the success stories of its customers and other stakeholders – lies its ability to continuously reinvent itself. And the reinvention seems to have started in earnest.

For instance, its stock soared recently, pushing the Group into the exclusive club of stocks with over one trillion (SWOOT) capitalisation. A few months after the remarkable feat, it went, shoving other lenders aside to reclaim the most capitalized banking stock on the stock exchange.

It has been 13 decades of rising and growing with Nigeria. But FirstBank is not slowing down in its journey with the country its operation pre-dated.