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ADEDUNTAN:  FIRSTBANK IS FUTURE-PROOF AND REMAINS COMMITTED TO THE GOLD STANDARD OF EXCELLENCE IN BANKING

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Dr.-Adesola-Adeduntan-Chief-Executive-Officer, First Bank of Nigeria
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* With over 4.6 trillion-naira loans to customers in Q3 2023, FirstBank is committed to economic growth and transformation. 

At the dawn of the new year, it is natural for the Nigerian banking sector operators to anticipate dynamic shifts in regulations, increased digital innovations, and a focused approach toward sustainable growth and financial inclusion, while both the government and private sector eagerly anticipate the banking industry’s pivotal role in driving economic resilience, fostering innovation, ensuring regulatory compliance, and spearheading inclusive financial initiatives to bolster national development.

As a mark of readiness for the 2024 journey, the Group Managing Director of FirstBank of
Nigeria Limited, the premier bank in Africa, Dr. Sola Adeduntan, in this interview with Festus
Akanbi
 speaks on wide-ranging issues including how to insulate the Nigerian economy from the fallouts of the current hostilities at the international scene, the prevailing operating environment in Nigeria and the First Bank’s blueprint for optimum performance in 2024.

The global community is yet to recover from the hostilities in Eastern Europe and the
Middle East and the wars do not look as if they will end soon.  How can Nigeria, a leading producer of oil, take advantage of the attendant disruptions to world order to reposition its economy instead of continuing to count the losses of the wars?

Since the emergence of the COVID-19 pandemic, global uncertainties have been on the rise;
manifesting either as geo-political trade tensions or full-blown wars such as the ongoing Russia- Ukraine war and more recently, the Israeli-Hamas hostilities in Gaza.

Despite concerted global efforts to resolve the conflict, the Russia-Ukraine war seems on track to mark its second anniversary in a few weeks from now. This has also led to significant disruptions to the global supply chain, especially in the commodities and energy space.

As a leading oil producer, one way Nigeria can take advantage of the disruptions caused by the
wars is by positioning herself to fill the vacuums created by the breakdown in relationships
among established trading partners and regions, e.g. the Russia – Europe gas supply deals.

However, to do this, the right infrastructural enablers must be in place as well as a significant rise in volumes of daily crude oil outputs beyond current levels. Nigeria must position itself as a more reliable source of gas supply to Europe in the short to medium term.

On the flip side, Nigeria can take additional steps to further insulate her economy from external shocks by strengthening local manufacturing capabilities and improving agricultural production to reduce the Nation’s import dependency.

However, due to growing global interconnectedness, it is becoming more difficult for any nation to fully protect its economy from volatility on the global scene. Nonetheless, this period calls for a heightened sense of awareness among Nigerian policymakers to ensure minimal distortions to the Nation’s economic conditions.

Nigeria’s crude oil production benchmark in the 2024 budget has been pegged at 1.78
million bpd, whereas OPEC is proposing a cut that will leave Nigeria with 1.5 million bpd. How can Nigeria remedy this in a way that will not significantly jeopardise the
implementation of the 2024 budget?

Traditionally, Nigeria has struggled to meet its OPEC output quota over the last couple of years. Although the Nation is currently recording some improvements in daily output volumes (largely due to the improving security situations), the country’s production volumes as of November 2023 stood at 1.25mbpd (excluding condensates), according to available official figures.

This represents about 3 million barrels cumulative monthly reduction when compared with the average daily production output of 1.35mbpd recorded in October 2023.

In preparing the 2024 budget, the government has made some key assumptions around crude
oil production outputs and price, that is, 1.78mbpd and $77.96/barrel respectively. Given the
expectation that security around crude exploration will keep improving and crude oil theft will
progressively reduce, these assumptions do not seem overly aggressive. Also, the Minister of
State for Petroleum Resources recently expressed strong optimism about the country’s ability to achieve its crude oil production budget benchmark.

However, recent moves by OPEC to cut crude oil export to buoy global crude oil prices should
not immediately be a challenge for the Nation seeing that our national daily crude production
levels are still a bit far off from OPEC’s quota. Rather, we should focus on entrenching the
improvements in crude oil production levels to make them sustainable. Where OPEC’s
production cuts become inimical to economic growth, it is also possible to engage OPEC for

exemptions from the production cuts given our current difficult economic situation. Nevertheless, the Nation also stands to benefit from the upsides of a higher crude oil price if OPEC’s production cuts are effective. This should offset the envisaged reduction in production volumes.

I would also like to note that the Nigerian authorities should enhance the ability of the non-oil
sector of the economy to generate sizeable revenues to support the government’s expenditure.
This will help to reduce the perennial over-reliance on crude oil revenues.

The Federal Government borrowing in the 2024 budget is to increase from N6.3 trillion in 2023 to N7.8 trillion in 2024, with much of it coming from Nigerian banks. How will you allay the fear of a possible crowding out of the private sector from banks in the coming year?

Given the government’s current preference for local borrowings, I can understand where the
fear of a possible crowding out of the private sector is emanating from. However, this does not
necessarily have to be the case.

Over the years, Nigerian banks have sufficiently demonstrated their commitment to supporting the real sector of the economy. For example, as of H1 2023, the value of loans disbursed to customers by just seven Nigerian banks stood at almost NGN23 trillion. As of September 2023, FirstBank alone has grown its loan book to customers by over N1 trillion over the December 2022 closing position. This is a clear testament to FirstBank’s ongoing commitment to the growth of the Nigerian economy.

As bankers, we fully understand and have embraced our catalytic role as agents of economic
transformation. In addition, banks deliberately pursue a diversified earning asset portfolio
strategy. As such, lending to the real sector will continue to offer much-needed diversification for banks’ overall portfolio health.

In summary, I do not think the private sector has any need to worry as we will continue to
support all sectors of the economy (including government) to realize their objectives.

With the inflation rate trending at 26.72%, and its attendant strain on the economy, how realistic is the dream of the private sector for an affordable lending rate in 2024?

Interest rate remains inextricably linked to the inflation rate. To narrow the margin of negative returns (which usually happens when the inflation rate far exceeds the interest rate in an economy), monetary authorities like the Central Bank of Nigeria (CBN) move to restore the attractiveness of investments by raising interest rates to tame inflationary pressures.

The rise in interest rate also affects customers differently depending on which side of the divide they fall. For depositors, a rise in interest rate means they will earn more returns on their savings or investments, while borrowing customers may have to take on a higher lending rate as banks also try to adjust for the higher funding costs.

Nevertheless, it has also been proven that an unusually high-interest rate burden exerts
considerable pressure on borrowers’ ability to repay their loans. Therefore, it is in the best
interest of both the banks and their customers to collaborate in arriving at a lending rate that
works for both parties. I do not believe that any bank will unreasonably raise its lending rate
above its justifiable cost profile, given the elevated competition that exists in Nigeria’s financial services industry.

The current administration plans to grow the GDP to $1 trillion in 2026. Although the
Central Bank Governor has directed banks to gear up for recapitalisation to enable them to adequately lend to the economy, do you believe the nation’s capital market, largely dominated by local investors, is liquid enough to generate the needed capital for banks?

The Government’s aspiration for a $1 trillion economy in the next 8 years from 2023 seems well-anchored given the significant fiscal changes that have been implemented since the new
administration came on board. If successfully implemented, these actions hold immense
potential to unlock new growth opportunities within the economy.

As of 18th December 2023, the Nigerian Exchange All Share Index (NGX ASI) has grown by
almost 45% from its closing position in December 2022. This suggests significant activity in the capital market within that period. Also, as the inflation rate tapers in advanced economies, we will begin to see normalization of interest rates in these jurisdictions. Given this trend, we expect to see a growing volume of Foreign Portfolio Investments (FPIs) into the Nation’s capital market as investors seek high-return jurisdictions and portfolios.

Therefore, given these tailwinds and other factors, I remain confident that the Nation’s capital
market will be sufficiently liquid to support the potential recapitalisation of banks.

The Bank recently took its culture of impressive performance higher with a 79 per cent
increase in its gross earnings on a year-on-year basis as it declared N922.2 billion in its
nine-month result for 2023. In terms of profitability, what should the Bank’s shareholders be expecting at the end of the 2023 financial year?

At FirstBank, we understand our responsibilities to all our various stakeholders, including
customers, regulators, employees, and shareholders, and we remain fully aligned on
discharging our obligations to all categories of stakeholders.

The Bank’s Q3 2023 financial performance underscores how dearly we strive to uphold our
obligations to all our stakeholders: we supported our customers with additional loans by growing the loan book by 34% to N4.6 trillion; we guaranteed our staff’s employment by remaining profitable in the face of the harsh operating environment; the Bank maximized its shareholders’ wealth with a commendable growth in profitability.

Our stakeholders should expect to see a Bank that is future-proof and ready to provide best-in-class products and services that will meet and surpass their needs across all our channels and jurisdictions of operations.
FirstBank remains dependably dynamic and will ensure that the needs of all stakeholders are
met:
 to the customers, we will provide the best products and deliver exceptional customer
experience,
 to the shareholders, maximization of ‘Total Shareholders Return’
 to employees, competitive emolument, and exciting career experience
 to regulators, voluntary compliance with all rules and regulations
 to communities, we will be good corporate citizens and give back to the society where we operate.

What is the current NPL ratio of FirstBank? What strategies have you adopted to
significantly bring it to its current level?

As of Q3 2023, the Bank’s NPL ratio remains within the Central Bank of Nigeria’s regulatory
threshold of 5%. It is also our expectation that the ratio will be maintained within the regulatory threshold by the end of FY2023.

FirstBank has built an enduring risk culture and governance system, strengthened the risk
infrastructure through specialized training, digitization of credit processes, and imbibed a
disciplined and pro-active portfolio management approach thereby ensuring strict regulatory
compliance as well as maintaining the NPL ratio with the acceptable threshold.

In what ways will the planned recapitalisation of banks affect the economy given our
experience of 2005?

The planned recapitalization of Nigerian banks should have several positive effects on the
economy given the intermediation role that banks play. Some of them include:
Investment Stimulation: since banks may leverage the capital market to raise additional
capital, the investing public will have more outlets for profitable investments. Given the relatively profitable nature of most banks, I expect that the appetite for the banking sector stocks will remain impressive, and this should significantly drive volumes on the Nigerian

Exchange Enhanced Underwriting Capacity: For banks, additional capital will mean improved capacity to underwrite bigger transaction tickets that can further unlock economic growth and support the Nation’s aspirations for the real sector.

Higher Employment Rate: As banks become better capitalized and able to support the real
sector on a bigger scale, this should translate to more employment opportunities as companies
employ more people to support their expansion programmes. A higher employment rate will also result in a lower poverty rate for the country.

How true is the fear that the current state of the economy may not guarantee the raising of the needed funds from the capital market at the same time, unlike what was obtained in the last banking sector recapitalisation?  What are the options available to banks seeking to shore up their capital?

As I mentioned earlier, though we are in a high inflation era and investible funds for households and corporates might be repressed, given the anticipated tailwinds from interest rate normalization in advanced economies, I am of the view that the capital market will be
adequately liquid to support the recapitalization exercise.

I would like to note that, investors will always seek decent returns even in a repressed economy. Nigerian banks have remained quite profitable, and most investors would like to invest in profitable entities. Similarly, equities of Nigerian banks might offer some good growth prospects in the near to medium term, thus offering significant capital appreciation opportunities for discerning investors.

Nevertheless, where there is a need for some augmentation, there are several other capital-
raising options available to banks. For example, banks can issue subordinated debt instruments or other forms of convertible bonds either locally or offshore.

Overall, depending on the eventual level of recapitalization mandated by the CBN, banks will
pursue any or a combination of several options to meet the required capital base.

With the headline inflation rate at 26.72 per cent in September and the interest rate at
18.75 %, and with the removal of subsidy and the attendant high cost of living, running
businesses in Nigeria is becoming a big risk.

How will Nigerian banks assist operators of
small and medium-scale enterprises which form the bulk of businesses in Nigeria?
SMEs remain the bedrock of any economy as they account for about 80% of employment on the continent. As such, it is extremely important to put measures in place to keep them thriving. In my view, the measures to make SMEs thrive in Nigeria can be broadly classified into two categories. These are fiscal and financing measures.

The fiscal measures relate to issues around ease of doing business, improving security for lives
and property, tax efficiency, adequate power generation, and enforcement of law and order,
amongst other things. I am sure you will agree with me that these matters largely fall on the part of the government across all levels.

On the financing part, although there is still a lot more room for improvement, banks have done quite well. For example, at FirstBank, through our SMEConnect hub, we offer much more than just financing to our SME clients. Through the platform, the Bank offers specialized business training to raise the skills level of our SME business owners, thereby equipping them to make better business decisions that will guarantee the success of their businesses. The platform also offers crucial networking and marketing opportunities for all our SME clients to exchange business ideas and contacts.

FirstBank also offers several lending products dedicated to SME clients operating in diverse
economic sectors such as FirstEdu loan for those in the educational sector, First Traders
Solution for those engaged in fast-moving consumer goods, Health Finance Facility for those
operating in the health sector, and many more. The Bank also continually reviews the terms and conditions of these facilities to ensure that they remain market-relevant and reflect the current realities of SME clients.

FirstBank’s SME clients can continue to count on us to listen to them through this rough
economic patch and offer necessary cushions that are within our control as a Bank. As a Bank
that is woven into the fabric of society, we have no other option than this.

Given the naira devaluation this year, what is the fate of the largely US dollar-
denominated nature of FirstBank’s lending to the oil and gas sectors?
As the foremost financial institution in Nigeria, FirstBank’s support for the Oil and gas sector is in tandem with our long-term views for the Nigerian market and our commitments to our clients.

Also, learning from previous experience, the current client composition of our Oil & Gas portfolio is quite healthy which is why there has been no material adverse effect on our operations as reflected in our most recent financial performance, despite the significant naira devaluations. In addition, some of these clients also have receivables in United States dollars which easily offsets their foreign currency-denominated obligations.

As a Bank, we remain committed to the highest standards of risk asset quality, and we will
continue to work with our clients to ensure this is always achieved.

FirstBank was recently adjudged as the Best Corporate Bank in Nigeria by Euromoney.
With the concentration of your bank’s lending activities in the energy and mining
sectors. How do you measure the gains from the bank’s exposure to oil and gas which is
put at 31% of net loans in 2022?

FirstBank’s emergence as the Best Corporate Bank in Nigeria by Euromoney represents a very
significant external validation of the strides the Bank has made on the Nigerian corporate

banking landscape. The goal for our Corporate Banking business has always been to be a
“Trusted Advisor” to our clients and we are quite pleased that the market is beginning to
acknowledge our impact in this area.

Also, beyond Oil and gas, the Bank is very supportive of other sectors of the Nigerian economy
(such as Manufacturing, Services, Telecommunications, Construction, etc), and FirstBank’s
emergence as the Best Corporate Bank in Nigeria by Euromoney represents a very significant
external validation of the strides the Bank has made on the Nigerian corporate banking
landscape. The goal for our Corporate Banking business has always been to be a “Trusted
Advisor” to our clients and we are quite pleased that the market is beginning to acknowledge
our impact in this area.

Also, beyond Oil and gas, the Bank is very supportive of other sectors of the Nigerian economy
(such as Manufacturing, Services, Telecommunications, Construction, etc) and is also actively
deploying its balance sheet to facilitate growth and development across these sectors.
As I mentioned earlier, our exposure to the Oil and gas sector reflects our strong commitment to building local content and capabilities required for sustainable national progress. In addition, the portfolio remains healthy with decent returns, and we expect this to continue.

As the foremost Bank in Nigeria, to what extent has FirstBank taken advantage of the
gains of the African Continental Free Trade Area (AfCFTA) agreement, which is designed to create the largest free trade area in the world measured by the number of countries participating?    
    

According to the World Bank, the African Continental Free Trade Agreement (AfCFTA) has the
potential to boost Africa’s income by $450 billion by 2035 and lift 30 million people out of
extreme poverty. As a pan-African bank with a vision to be “Africa’s Bank of First Choice”,
AfCFTA presents a very important vehicle for us to serve the broader African market.

Therefore, the Bank has taken several measures to optimally exploit opportunities around
AfCFTA. First, as a Bank, we have engaged in extensive export requirements and capabilities
trainings for our customers to distill the significant export opportunities around the AfCFTA and help them identify suitable markets for their produce. These training programs will remain a recurring feature in the short to medium term.

Secondly, we have created and positioned a strong payments/remittance proposition (known
as First Global Transfer) to support and facilitate payments for intra-African trade among both
existing and prospective customers, while keeping in close step with developments around
AfCFTA’s Pan-African Payment and Settlement System (PAPSS) for seamless integration.

Finally, in line with our vision, the Bank will ensure a strategic presence in critical trading
corridors on the African continent to support the trade facilitation and other requirements of our clients, thereby giving them an unparalleled competitive advantage.

What are your plans to sustain the bank’s robust customer service network and digital
banking architecture in 2024?

At FirstBank, our “You First” brand promise to our customers is not just a cliché. It encapsulates our firm commitment to making banking seamless, more accessible, and rewarding for our teeming customers. As an institution, we will continue to leverage both physical and digital channels to serve our customers effectively.

With almost 700 operational business locations, no other bank comes close in the branch
network. This has enabled FirstBank to deliver banking services within proximity to our
customers’ homes and offices. We have also supported our extensive branch network with a
best-in-class agent banking network with over 220,000 FirstMonie Agents strategically located
across the length and breadth of the country. These agents, in no small measure, have been
critical to extending financial inclusion levels in their immediate localities.

With over 3,000 Automated Teller Machines (ATMs), FirstBank has one of the highest ATM
spreads in the Nigerian financial services space which enables us to serve our customers
round-the-clock. Also, the Bank’s digital and mobile channels (*894#, FirstMobile, FirstOnline & Lit App) have been very successful with our clients, enabling them to conclude both banking
and non-banking transactions from the comfort of their homes and offices.

To cater to the needs of our wholesale clients, the Bank has positioned a robust transaction
banking platform (FirstDirect) that enables us to service the transaction banking needs of our
customers.

In a bid to improve overall customer experience, the Bank has also ensured that its service
delivery channels have in-built complaint-handling and issue resolution mechanisms to give customers extra confidence to transact on any of these channels. This is in addition to our
always-on, 24/7 interactive, and intelligent contact center, known as FirstContact.
At FirstBank, we remain committed to seeking innovative ways to serve our clients and we will
leave no stone unturned to continue to deliver a wholesome customer experience.

As the first Nigerian bank to surpass 200,000 agent banking locations as an exceptional
financial inclusion pioneer, what are the plans being put in place to maintain your
dominance of agent banking in the coming year?

FirstBank’s feat in the Nation’s agent banking landscape is in tandem with our established
pioneering status in Nigeria and the sense of partnership with which the bank operates towards achieving critical national developmental objectives. With over 220,000 agents on
our FirstMonie Agent Network, FirstBank is a major partner in pushing the Central Bank of
Nigeria’s (CBN) financial inclusion agenda.

The Bank’s FirstMonie Agent Network has processed over 1.4 billion unique transactions worth well over NGN32 trillion and has empowered numerous localities around the Nation’s 774 Local Government Areas (LGAs) with basic financial services that facilitate economic activities in these communities. This is in addition to the millions of direct and indirect employment opportunities that our agent banking network has created for local communities.

The Bank is constantly strengthening its value propositions to the FirstMonie agents in several ways. For example, through our Agent Credit product, the Bank supports agents to bridge intra- day liquidity shortfalls, thus enabling them to better serve their clients. Also, beyond basic offerings (such as cash-in-cash-out, transfers, and bill payments), the bank has empowered its agents to render more financial services such as account opening for customers.

We are also continuously fine-tuning our agents’ support structure to ensure our agents obtain prompt resolution for any service hitch experienced.
As a Bank, we view our FirstMonie Agents as partners and we remain committed to making the
necessary investments to make the partnership a win-win for all parties involved.

Another game-changer in the story of the transformation of FirstBank was the conscious
attempt of the board and management to make the bank a transaction-led institution.

How does the bank intend to continue from this threshold as a way of drawing from the
gains of its investment in Technology Academy in Nigeria?

One of the Bank’s strategic priorities in the current strategic cycle is to build a world-class
(customer-first) service organization. As such, as an institution, we no longer view Technology
as a business enabler but as a business.

Also, when you consider that over 90% of the Bank’s customer-induced transactions now
happen on digital platforms, it becomes clearer why we have made (and will continue to make)
sizeable investments to overhaul our Information Technology (IT) architecture and
infrastructures to guarantee IT platform availability and security to support the overall business aspirations.

The FirstBank Technology Academy is one of the Bank’s creative solutions to addressing the
emerging shortage of skilled IT talents in the country in the wake of the increasing migration rate (commonly known as Japa). It is a one-of-a-kind intervention where the Bank engages available graduates with a STEM background and offers them bespoke IT training in line with our business needs. This is FirstBank’s way of growing its IT talents and boosting the national
supply of critical IT talents as we cannot afford to use a shortage of talents as an excuse for not
meeting up to the high standards to which our customers hold us.

The program has also provento be highly successful, and we will intensify our efforts in this regard. As a foremost financial institution in Nigeria and on the continent, we are keenly aware of the role technology will continue to play in our ability to serve our clients, and we are poised to make necessary investments at the right scale and on an ongoing basis to guarantee the security, availability, and relevance of our digital assets.

Is acquisition one of the plans being put in place by FirstBank in preparation for the new
threshold of capital base to be announced soon by the Central Bank of Nigeria? We note
that the bank already has a capital base of N1.287 trillion.

As you also noted, FirstBank has been very intentional in ensuring that it maintains a strong
capital base given the scope of the Bank’s operations and in line with regulatory requirements.
This has informed the deliberate measures the Bank has taken to shore up its capital base over
the past few years.

Depending on where the pendulum finally settles when the CBN unveils the new minimum
capital requirements for banks, as a compliant and socially responsible institution, we will
explore all options available to us to ensure full compliance and maintain our competitive
advantage over other players in our industry. At FirstBank, we leverage both organic and inorganic growth strategies to achieve scale and deliver improved shareholder value.

FirstBank’s plan to rejuvenate its workforce was recently underscored by the
employment of more than 700 fresh graduates. Can you start to count the gains of this
decision?

The Bank’s Graduate Trainees programme is a highly competitive process through which the
Bank identifies and selects young and dynamic individuals for proper grooming to occupy future leadership roles within the organization. Aside from this, FirstBank has several other talent development initiatives such as the FirstBank Management Associate Programme (FMAP), Leadership Acceleration Programme (LAP), and Senior Management Development Programme (SMDP) which are targeted at employees at different strata within the workforce to build a sustainable pipeline of dependable leaders for the institution.

I am glad to note that as an equal-opportunity employer, we offer very compelling employee
value propositions that set us apart in the industry. This is in line with our belief that our
employees are not just our greatest asset, but they represent the greatest source of strategic
advantage for the Bank’s long-term success.

In 2015, FirstBank initiated a development plan that allows most vacancies in the bank to
be filled internally. What is the update on this employee-friendly policy of the bank?
At FirstBank, we maintain an end-to-end view of the employee lifecycle which ensures that we
focus on offering every employee a fair chance of having meaningful work experience with us.
This approach ensures continuous improvements across every stage of the employee
experience from recruitment to development and deployment on an ongoing basis.

Since implementing the policy on internal recruitment for vacant roles, the Bank has witnessed a significant uptick in the employees’ mobility index as most vacancies now get filled from existing employee pools. To achieve this, several initiatives such as the FirstBank Job Shadow Programme and the FirstBank Mentoring Programme enable current employees to acquire new skills even while still in their current roles. This makes them ready to take on future opportunities within the Bank.

Secondly, the Bank has acquired a world-class people management system that supports
seamless management of job vacancies, competency assessments, and the entire employee
lifecycle management process. This provides the necessary visibility into various aspects of our employee management process.

While the Bank still conducts some external recruitments to infuse external perspectives into
some functions, the proportion of external recruitments in the overall recruitments has reduced over the last few years.

The bank recently pioneered the deployment of humanoid robots in three of its branches as a demonstration of its commitment to fully adopt technology-led banking services. What is the initial feedback from customers and what are the implications of the adoption of technology on the employees’ job security?

FirstBank’s Digital Xperience Centre (DXC) is Nigeria’s first ever fully digitized bank branch
employing the latest technologies such as humanoid robots and artificial intelligence to enable customers to perform self-service banking transactions. The DXCs reflect the Bank’s views on the near-future possibilities in financial services delivery, given recent technological
advancements. It also underscores the central role modern technology now plays in the Bank’s
operations and overall service delivery strategy.

The DXC is a fully automated interactive digital branch that was first launched in Lagos in 2021 and has since then, redefined customers’ banking experience through a world of digitised self-service. We have thereafter rolled out the DXC at the University of Ibadan, Oyo State, and more recently, at our branch in Wuse Abuja. Since these rollouts, the Bank has received
commendable feedback from customers (especially customers in the retail segments) which has validated our investments in these modern technologies.

There are already plans in place for more rollouts of the DXCs across all our operating jurisdictions. I would like to note that the DXC is not a trade-off for our employees, but an enabler to free up our staff’s productive time to take on more complex and rewarding tasks within the Bank.

Also, given our several laudable employee initiatives (some of which I had earlier mentioned), we are well-equipped to empower our employees to take on any other role they may desire within the larger FirstBank Group.

Sir, can you give further explanation on the recently announced phased corporate name
change for FirstBank’s subsidiaries in the United Kingdom and Sub-Saharan Africa?

The Bank’s decision to adopt a monolithic brand name across all operating jurisdictions is borne out of the need to ensure we leverage the rich heritage behind the FirstBank name, and the goodwill garnered in almost 130 years of operations across all the markets where we operate.

Also, as we follow our clients across geographies, it becomes increasingly important to maintain consistency in the brand name to improve overall client affinity and guarantee similar standards in service delivery across all operating jurisdictions.

In addition, the name change across all our subsidiaries will enable us to take advantage of available synergistic opportunities in both our marketing efforts and budgets. Finally, a uniform brand name (across our market) helps the Bank to avoid needless identity crises and is best aligned with our vision of becoming “Africa’s Bank of First Choice”

FirstBank has consistently been recognized as a market leader in the sustainability/ESG
space in Nigeria and Africa. This recognition has come from different organisations such
as Global Banking and Finance, International Business Magazine, Euromoney Market,
Great Place to Work, etc. And these mostly happened under your leadership.
Congratulations sir.

Please what is FirstBank doing in the ESG and the broader sustainable development
space to achieve these recognitions and how do you intend to ensure this is
strengthened to enhance your market leadership considering that ESG/sustainability
space is very dynamic, fluid, and always evolving?

At FirstBank, we value our relationships with all our stakeholders, especially the communities
where our businesses operate. Therefore, we are very deliberate in how we engage our host
communities to guarantee shared prosperity and the long-term sustainability of the environment. The Bank also ensures its Corporate Responsibility and Sustainability (CR&S) approach is well

aligned with both local and international best practices as advised by the Nigeria Sustainable
Banking Principles (NSBPs), International Finance Corporation Performance Standards (IFC
PS), and the Equator Principles (EPs).

To this end, FirstBank’s CR&S Framework is hinged on three strategic pillars, namely:
Education, Health & Welfare; Diversity & Inclusion; and Responsible Lending, Procurement &
Climate Initiatives.

Each pillar is operationalized through the implementation of well-coordinated programmes and initiatives that enable the Bank to fulfill its sustainability agenda and priorities. For example, some of the initiatives include:

SPARK: SPARK (an acronym for Start Performing Acts of Random Kindness) is a values-based
initiative designed to continuously reignite the Bank’s cherished moral values of compassion,
civility, and charity. Since its inception, the SPARK initiative has impacted over 150,000 people
and 100 charities / NGOs across 8 countries where FirstBank currently operates.

FutureFirst Programme: In partnership with Junior Achievement Nigeria (JAN), this programme is FirstBank’s vehicle for promoting the triple benefits of financial literacy, career counseling, and entrepreneurship among the younger generation. Over 1 million people across Nigeria have benefitted from this financial advocacy effort.

Partnership with Nigeria Conservation Foundation (NCF): Through the Green Recovery
Nigeria (GRN) Initiative, the Bank aims to plant 50,000 trees in 2024 towards the reduction of
carbon dioxide gas emissions.

In addition, the Bank has fully embedded an Environmental, Social, and Governance Risk
Management System (ESGMS) into its credit decision processes as well as adopted
sustainability reporting to measure progress on its sustainability journey.

The Bank is also committed to decarbonizing its operations, including those of its value chain, in a bid to accelerate its transition to a net-zero carbon emission status.

This is being done in line with the standards of the Partnership for Carbon Accounting Financials (PCAF) and other international agencies such as the British International Investment (BII) and Proparco.

Finally, to ensure issues about sustainability are continuously given the highest visibility and
consideration in all our business pursuits, FirstBank has constituted a Corporate Responsibility & Sustainability Committee that is chaired by our Executive Director / Chief Risk Officer, thereby guaranteeing the right “tone at the top” in the execution of our broad ESG agenda.


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