Thirteen decades after it first set up shop in Nigeria, First Bank of Nigeria Limited, inspired by its parent company (FirstHoldCo) chairman, Femi Otedola, has set the standard again as it commences the process of uprooting its corporate headquarters from Marina, the declining Wall Street of Nigeria, to Eko Atlantic City, the emerging elite financial hub to kick-start another scramble in the industry it has dominated for over a century, GEOFF IYATSE writes.
In 1894, three years before Flora Shaw, the journalist, would pen down the word, ‘Nigeria’, for the first time, First Bank of Nigeria (then trading under Bank of British West Africa) opened its first office to chart the path for what would become the most competitive industry in the economy that has emerged as the undisputable gateway to Africa.
Its elephant emblem is not just a brand identity. It symbolises the institution’s essence as a force in the industry it operates in. It is also tge very epitome of corporate stability. Like every other entity, the bank has had its fair share of corporate challenges. But in the past decade, it has weaned itself from its challenges to consolidate its position as one of the systemic important banks (SIBs) and one of the big five in asset, capitalisation and customer base.
Besides its premiership status in the West African financial service industry, FirstBank has recorded several firsts in Africa’s frontier market. It was the first Nigerian firm to list on the Nigerian stock exchange. It was the first Nigerian bank to wholly own a full-fledged offshore bank. It was the first organisation in Nigeria to be granted the Information Security Management System Certification (ISMC). Also, it was the first financial player to sign up with Western Union to introduce the market to international money transfer services.
Globally, traditional institutions are often conservative and anti-innovation. But FirstBank competes well in innovation and could actually be described as the Usain Bolts in the adoption race. For instance, it rolled out its first automated teller machine (ATM) in 1991 to introduce the service to the market. It followed up with the first biometric and cash deposit ATMs in the country – services that were launched in 2011. It was also the first Nigerian bank to adopt credit administration software and WhatsApp banking.
The new grounds it broke, interestingly, have emerged as levers for the country’s banking sector in its global outreach and prominence. For instance, since 1982 when FirstBank opened its United Kingdom operations, several others have opened foreign outposts. Currently, seven indigenous banks have international licences with operations in Europe, Asia, the Middle East, America, the Caribbean and other parts of Africa.
ATM, a service the pioneer bank launched over 40 years ago, has also become a standard service offering. ATM offers have grown from cash withdrawal to several self-help services such as fund transfer, bill payment, airtime top-up, balance inquiry and account opening. These have decongested banking halls considerably and offered depositors 24-hour access to their bank accounts. In the first half of last year, the total ATM transaction stood at N12.21 trillion, underpinning the relevance of the service to the sector despite the recent cash crisis.
And while consolidating its leading roles, FirstBank has started the construction of a 44-storey eco-friendly edifice in the Eko Atlantic City, leading the pack again in the scramble for a share in the Eko Atlantic City.
Less than a week after the bank laid the foundation stone of the iconic masterpiece, MTN Nigeria, the country’s largest telecoms operator, said it would be the first in its industry to build an office in the coastal city. Shell, also a leading energy company operating in Nigeria, has also signed up for a planned relocation to the 10 million-square-meter reclaimed city.
At the ground-breaking ceremony, the Vice President, Kashim Shettima, commended FirstBank, saying its courageous step comes as a symbol of the “nation’s progress, economic strength and ambition”.
For over 130 years, he told the audience, consisting of elite investors, media, and government functionaries, that the bank’s operations in West Africa have been a pillar of economic growth, empowering businesses, supporting families and fostering prosperity.
“As we move forward, we must recognise that our people – farmers, business owners and entrepreneurs – are the backbone of our economy. Their resilience, faith and determination fuel our nation’s progress,” he noted, highlighting the social responsibility of the financial system operators.
The elephant (referring to FirstBank identity) is a symbol of wisdom, strength as well and leadership, and embodies Nigeria’s commitment to growth, vision and future prosperity, Shettima noted while listing the possible gains of FirstBank’s latest audacity.
“FirstBank leads the way,” Lagos State Governor, Babajide Sanwo-Olu, stressed, challenging others to follow suit as he presented the certificate of approval to the institution.
“To signify our commitment, we will now present the official certificate of approval to FirstBank, allowing them to commence construction immediately. Let this be the beginning of another landmark achievement for Lagos and Nigeria. There is ample opportunity here in Eko Atlantic, and we will continue to provide a supportive environment for investment and development.
“To the Central Bank of Nigeria, CBN Governor, we appreciate your approvals and encourage you to extend the same support to other financial institutions seeking to establish their presence here. There is still land available, and we invite more investors to take advantage of this prime location,” Sanwo-Olu noted while pitching the city where a square meter goes for as much as N1.8 million.
The tower, FirstBank Group’s CEO, Olusegun Alebiosu, said would stand as a beacon of heritage. Recounting how what used to be Lagos Bar Beach has been transformed into a solid ground on which the ceremony was held, the CEO said the bank remained optimistic about the future of the economy.
First HoldCo Chairman, Femi Otedola, validated Alebiosu’s positivity, describing the ground-breaking as the beginning of a new dawn for the bank that has survived all known financial turmoil, economic crises and political turbulence Nigeria has witnessed. Otedola, who inspired the building project, described Eko Atlantic City as the ninth wonder of the world, saying the tower would serve as the engine room of the next phase of the bank’s dominance.
The building, the bank said, is designed to inspire and meet the highest standards of sustainability, demonstrating its commitment to environmental, social and governance (ESG). A pre-event statement described the building as a significant milestone and an ambitious project set to be an engineering and environmental delight due to its technologically advanced, eco-friendly and sophisticated construction that would set a new standard for the financial services sector in Africa. The project, it said, is designed with sustainability in mind, featuring a green-certified building that reduces operational costs and positions the bank as a leader in sustainable banking practices.
The building, which would sit on 150,000 square metres, will not only be among the most magnificent towers in Africa but also promises to be among the most impressive work environments across in the world when it is completed.
Eko Atlantic City is many things to different people. It will stretch the elegance and class of Banana Island and Parkview by several miles and emerge as the most impressive residential neighbourhood in Lagos and, perhaps, Nigeria.
It also symbolises the new phase of Nigeria’s financial service sector. Already, it is being proposed to house the Lagos International Financial Centre (LIFC), a project promoted by the Lagos State government and EnterpriseNGR.
In banking, make-believe is a standard business strategy – perhaps because confidence-building drives more perception than substance. In the middle of a liquidity crisis when they should cut costs, they raise executive bonuses to detract from their real status.
But for FirstBank, the desire for a more befitting head office balances with a robust balance sheet and financial growth. Last year could turn out the most impressive in its recent history. Its Holding Company’s earnings per share (EPS), as well as its profit, grew by 125 per cent year-on-year (Y/Y).
But there is much more to where the premier bank stands in core banking as its profitability is not a mere aggregate of transaction charges. It has also increased its commitment to financial intermediation through sustainable business operations.
For instance, in three quarters, its interest income, which gives a clue of sustainable profit margin, grew by 165 per cent to N1.63 trillion.
Interestingly too, these are not just random progressions, neither are they products of white noise in its corporate sojourn but products of consistent business growth across top and bottom-line metrics since it emerged from its 2014 crisis.
For instance, from 2019 to 2023, the most recent audited financial, its EPS has expanded by over fourfold – from 195 kobo to 859 kobo to make it one of the fastest growing in Nigeria’s capital market. In the same period, it grew its yearly operating profit by over 320 per cent, from a mere N73.8 billion to N310.5 billion.
On the top line, its earnings nearly tripled, growing from N623 billion to N1.6 trillion in five years, during which its total assets jumped by N10.7 trillion to close 2023 at N16.94 trillion.
As a key growth driver, its loans to customers saw a whopping rise of 243 per cent in the period to hit N6.36 trillion as of December 2023. Its facilities, according to information gleaned from its financials, are spread across key sectors, including oil and gas, manufacturing, agriculture, agro services, construction, and real estate.
With its new 10-year vision, which was articulated in 2023, billed to consolidate these gains, the last ‘decade of miracle’ might as well serve as the launch pad of the new FirstBank. Interestingly, 2025 is the take-off of its 2025 to 2029 strategic planning cycle when it intends to “double down” on its dominant position across all the markets where it operates.
Part of the programme is strategic investments to improve customer experience to make it easier for existing and prospective customers to interact and do business on its offline and digital platforms, deploying new technologies and ramping up artificial intelligence deployment to scale up digital operations, Alebiosu disclosed.
Perhaps, the proposed office environment would stimulate the passion for the reinvention the bank craves.
