Business News
Atedo Peterside says Nigerian Youths can’t start a bank at 33
Atedo discussed several issues, including why it might be difficult for a young person.
Founder of Stanbic IBTC, Atedo Peterside, was recently interviewed by Peace Hyde for the business programme, My Worst Day. In it, Atedo discussed several issues, including why it might be difficult for a young person to secure a banking license at 33 today like he did years ago, as well as the bank’s tussle with the Financial Reporting Council of Nigeria (FRC).
Why banking?
Peterside described himself as a man who had always been motivated to be an entrepreneur.
“I took to banking as a career, more with the intention to be a banking entrepreneur. I’m more of an entrepreneur who just happened to be in banking.”
Was there any major challenge owing to being a CEO at age 33?
For him, being the CEO of a bank at 33 was not the challenge; it came from being the founder and largest shareholder who had to shoulder most of the tough decisions.
“Being an entrepreneur was. Also, being the pillar that carried the bank; That was where the weight came from.”
What was the source of confidence for establishing a bank?
“I was confident because prior to that, I had worked for ten years all my life. I had worked in banking all my life. The minimum requirement was ten years of banking experience, which I had…”
In the latter part of the interview, Atedo also admitted to being a very confident person by nature.
How to run a bank
To him starting a bank is like a marathon.
“On the very first day, your market share is N0.00. The intention is to progressively increase market share, to progressively become relevant. If you try to do it too quickly, the whole thing may crumble. One can only grow a bank as fast as various units take to be in sync. The pace can only be as fast as the weakest link in the chain moves.”
What led to the merger with Stanbic?
He explained that the merger was a well thought out decision.
“We were willing to continue IBTC in its original form for as long as possible. It was a decision we made after 18 years, because we had come across the right type of partner who could take the bank to the next level.”
Creating an environment for equal opportunities
Atedo also explained why IBTC had more women in key management decisions.
“It was simply a case of pursuing merit. You hire the best people you come across. Eventually, in a society that’s male-dominated, because your competitors discriminate, the best women will come to you because in some other places they won’t get a look in…If you offer them a good deal, stable place, consistency and a good reward they will stay.”
Sola David, who was his deputy in IBTC, then Stanbic IBTC, moved on to head the bank and then the parent company as the Chief Executive rest of Africa at the Standard Bank Group.
Why has this feat not been duplicated?
Peterside gave an interesting explanation as to why that feat may be difficult to repeat in current times. According to him:
“Our society is rigged against young people. They have got to be very careful in this environment. Most rules have been put in place to make it very difficult for young people to succeed. When I was young, it wasn’t like that.”
He continued:
“It’s almost as if some Nigerians, as they got older kept on pulling the rug along with themselves and the environment that enabled them to come in and succeed they withdrew it so today’s young people can’t repeat what they did.
“I am sad that today, no young Nigerian can begin a bank at 33 the way I did. The rules won’t let him. If you have ten years’ experience and you want to come for a banking licence, they will throw you out.”
In his view, this had led to many young people turning their focus to the creative arts, because the rules have not been rigged against them.
“They are going to the areas where they can compete; It is difficult for a 78-year-old man to compete against a 22-year-old man in hip-hop music.”
Worst day in business
“26th of October, 2015. That was when the Financial Reporting Council (FRC) came out with a huge news item that we had falsified our accounts for 2013 and 2014.
He says:
“It was the only day possibly in my life, that we had a high profile accuser (which made a false accusation).”
The bank was accused of making provision of technical fees since they had not paid it. The bank, however, had not paid it, because it had not obtained approval.”
Atedo was, however, unwilling to go into details, because those who were at the agency at the time had since moved on. You can find Nairametrics’ coverage here.
Advice to young people
First, they have to understand their abilities, and then pick an event (career or vocation) that they have a fighting chance to succeed in.
You can watch the interview here.
Coronavirus
COVID-19 Update in Nigeria
On the 29th of September 2020, 187 new confirmed cases were recorded in Nigeria
The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 58,647 confirmed cases.
On the 29th of September 2020, 187 new confirmed cases were recorded in Nigeria, having carried out a total daily test of 2,549 samples across the country.
To date, 58,647 cases have been confirmed, 49,937 cases have been discharged and 1,111 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 509,555 tests have been carried out as of September 29th, 2020 compared to 507,006 tests a day earlier.
COVID-19 Case Updates- 29th September 2020,
- Total Number of Cases – 58,647
- Total Number Discharged – 49,937
- Total Deaths – 1,111
- Total Tests Carried out – 509,555
According to the NCDC, the 187 new cases were reported from 13 states- Lagos (74), Plateau (25), Rivers (25), Gombe (19), FCT (19), Osun (10), Kaduna (5), Borno (3), Ogun (2), Katsina (2), Nasarawa (1), Bayelsa (1), Edo (1).
Meanwhile, the latest numbers bring Lagos state total confirmed cases to 19,384, followed by Abuja (5,696), Plateau (3,425), Oyo (3,260), Edo (2,626), Kaduna (2,407), Rivers (2,395), Ogun (1,838), Delta (1,802), Kano (1,737), Ondo (1,631), Enugu (1,289), Ebonyi (1,040), Kwara (1,034), Abia (894), Gombe (883). Katsina (861), Osun (837), Borno (745), and Bauchi (699).
Imo State has recorded 568 cases, Benue (481), Nasarawa (450), Bayelsa (399), Jigawa (325), Ekiti (321), Akwa Ibom (288), Niger (259), Adamawa (240), Anambra (237), Sokoto (162), Taraba (95), Kebbi (93), Cross River (87), Zamfara (78), Yobe (76), while Kogi state has recorded 5 cases only.
READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government
Lock Down and Curfew
In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.
The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.
On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.
On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.
READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous
Business
HealthPlus: More facts emerge as Bukky George reveals she owns 48.9%
HealthPlus insists its founder, Bukky George owns a majority share of HealthPlus Africa Holdings.
HealthPlus says that its founder and former CEO, Mrs. Bukky George, owns 48.9% of HealthPlus Africa Holdings and that she is the only Nigerian registered Pharmacist shareholder and director in the company.
This was revealed in a statement by HealthPlus on Tuesday, in a bid to educate the public on the squabbles going on between it and Alta Semper Capital over the removal of George as CEO, and the appointment of Chidi Okoro as Chief Transformation Officer.
Nairametrics had reported last week that HealthPlus Limited appointed Okoro as Chief Transformation Officer. According to the statement earlier released by the company, Okoro’s mission is to optimize day-to-day management and elevate the business to novel scale and profitability, while the founder of the Company, George continues to be a director and a shareholder.
READ: Sterling Bank gets CBN approval for restructuring
George however, issued a counter press release, denying that she had been removed as MD/CEO. According to her, the press release was not authorized by the company and was therefore false.
Alta Semper, in a follow-up press release, alleged that the decision to remove Mrs. Bukky George “was made in full compliance with Nigerian laws, and follows a long and drawn-out process of engagement,” through which the Board sought to address multiple issues concerning the way the company was being managed.
Health Plus also reported Alta Semper directors to the police last week, as observed in a document seen by Nairametrics.
In today’s statement, HealthPlus said that it had partnered with Alta Semper Capital LLC UK in 2018 to inject fresh capital to grow the business.
READ: Fairfax Africa Holdings enters purchase agreement with Helios Holdings Ltd
“The investment in HealthPlus was to enable the company to capture the pent up demand for high quality yet affordable medicines … expand the company’s footprint across Nigeria, establish a distribution centre, develop B2B channels and e-commerce.
“Alta Semper undertook to commit $18 million into HealthPlus whilst retaining Mrs. Bukky Geroge as CEO,” the statement partly read.
READ: Deal: AIICO receives N5.3 billion investment from Leap Frog
HealthPlus says that Mrs. George, at the time of the investment, transferred 95% ownership of the business to a new entity called HealthPlus Africa Holdings Limited, incorporated in Mauritius, whilst retaining 5% equity to her name.
“HealthPlus Africa Holdings is owned by Mrs. Bukky George (46.2%) and Idi Holdings ( 53.8%), Idi Holdings is Alta Semper’s investment vehicle”
“In essence, Mrs. Bukky George owns (directly and indirectly) 48.9% of HealthPlus and is the only Nigerian registered Pharmacist shareholder and director in the company.”
READ: Naspers has finalised its mode of exit from Multichoice
HealthPlus also said that Alta Semper’s initial $10 million investment achieved several initiatives in its business plan.
“However, it soon appeared that they (Alta Semper) were unable to come up with the balance of the equity investment.”
It argued that in May 2020, after 15 months of delayed funding, unmet expectations and dwindling inventory, “Mrs Bukky George instituted legal action at the Lagos Division of the Federal high Court [in suit No: FHC/L/CS/609/2020] seeking relief aimed at stopping Alta Semper from running and managing the company.”
HealthPlus says after Alta Semper was served the court process, they did not file any defense but appealed for dispute mediation.
It was added in the statement that the mediation was truncated after 3 meetings within a period of 3 months, “Their intransigence frustrated Mrs. George’s other nominee for director and Chairman into resigning from the board”
HealthPlus’ statement cited that the board, now with just 3 directors, had not met in six months and that the last time Mrs. George heard from Alta Semper was when they wrote last week stating her termination as CEO, “which in fact they had no authority or power to do so.”
HealthPlus says Mrs. Bukky George remains the founder and CEO, and continues to run the company.
Business
CBN launches framework for advancing women’s financial inclusion in Nigeria
The CBN in collaboration with EFInA has launched a framework to advance women’s financial inclusion.
The Central Bank of Nigeria on September 29, 2020, virtually launched the framework of advancing women’s financial inclusion. This was disclosed in an online event tagged “Access to Finance Framework for Women” and anchored by Dr Paul Olukpe.
The framework was conceptualized by the Financial Inclusion Special Intervention Working group and developed by the CBN in collaboration with EFInA and Women’s World Banking with input from over 50 stakeholder institutions.
The overarching vision of the framework is for Nigeria to be globally recognized, with an inclusive financial sector that has closed the gender gap by 2024. The framework further itemizes 8 strategic imperatives for driving improved access to finance for women in Nigeria.
In the online event monitored by Nairametrics, the Deputy Governor, Financial System Stability of the Central Bank of Nigeria, Mrs. Aisha Ahmad justified the new initiative by citing EFInA’s last report on financial inclusion in 2018 as a yardstick.
(READ MORE: Banks’ loans to private sector increase by N3.50 trillion in one year – CBN)
Recall that EFInA 2018 Financial Inclusion report indicated gender imbalance and a clear need to attend to the issue of growing female financial exclusion. For example, the report stated that 40.9% of females were financially excluded as against 32.5% of males. Mrs. Ahmad remarked that perhaps, the figures might even be wider if unattended to especially in this period of crisis.
Mrs. Ahmad urged financial institutions to address structural issues limiting women’s access to finance by understanding and developing products that are specifically tailored to address such issues.
Why this matters
Empirical studies have shown that supporting a stronger role or empowering women is a key enabler in reducing poverty, stimulating economic growth and ensuring sustainable development. Citing ‘’The Power Parity Report by McKinsey’’, the Director of development finance department of CBN, Mr Yusuf Philip Yila, stated that the economic consequences of pursuing gender equality include a potential addition of $28trillion to global annual GDP by 2025.
This framework is a big boost to achieving SDG’s goal of gender equality and Nigeria’s financial inclusion targets simultaneously.
COVID-19 Update in Nigeria
HealthPlus: More facts emerge as Bukky George reveals she owns 48.9%
MTN Nigeria, Zenith Bank post gains, as investors gain N54.42 billion
CBN launches framework for advancing women’s financial inclusion in Nigeria
FrieslandCampina WAMCO completes purchase of Nutricima’s dairy business, positions its business in Nigeria for growth
COVID-19 Update in Nigeria
Daily Parallel Market Exchange Rate – ₦465/$1
Board room squabble tears HealthPlus apart
New PIB amends royalties by oil firms as Sylva clarifies position on scrapping of NNPC
Sterling Bank gets CBN approval for restructuring
