First Bank: Fostering Cross-atlantic Trade

Nume Ekeghe writes that First Bank of Nigeria recently marked a giant stride when its United Kingdom arm; FBN Bank UK marked its 40th year anniversary.  

Marking 40 years anniversary is in many cases a big occasion for individuals and it is not different for institutions either as the United Kingdom arm of First Bank of Nigeria Group, FBN Bank UK marked its 40th anniversary amidst pomp and pageantry. The FBN Group, which remains the oldest bank in the country, was the first Nigerian bank to spread its tentacles outside the shores of Africa’s most populous nation.  

Charity they say begins at home and First Bank of Nigeria has thus far been able to transition its vast knowledge in attracting and helping businesses grow from within the Nigerian Banking space to its various subsidiaries in countries within and outside Africa. Its presence in countries such as DRC, Senegal, Ghana, Guinea, Guinea, Gambia, and Sierra Leone demonstrate its understanding and experience of business on the African continent.   

Boost for Cross Border Trade 

This reach in Africa enhances FBNBank UK’s capacity to do business across Africa, leveraging on the group’s presence and coverage. As the popular saying goes, life begins at 40 and for FBN Bank UK, there are still a lot to do in facilitating trade not just between Nigeria and Europe, but also the link among countries within the African continent. This is particularly crucial with the implementation of the Africa Continental Free Trade Area (AFCTA). 

The presence of FBN Bank in the United Kingdom not only ensures ease of trade but also capital that is required for investment in infrastructure and burgeoning businesses in Nigeria and Africa as a whole. According to the Governor of the Central Bank of Nigeria, Godwin Emefiele, trade will spur economic growth, employment, and wealth creation in the country. The integration of the Nigerian and indeed the African banking industry into the global financial system is vital for driving these two critical factors. 

“FBNBank UK’s established presence in a leading global financial center such as London, ensures that FirstBank Group is well positioned to play an active role in the promotion of Africa as an investment destination, attract much needed capital to the continent and facilitate trade with other parts of the world. The presence of FirstBank in other countries outside Nigeria shows that the span of its impact is continent-wide,” he said.

The CBN Governor noted that being headquartered in the largest economy on the continent, FBN have a unique role in also facilitating capital flows into other African countries and assisting their economic growth and development.

“Partnerships with global financial institutions is critical to ensuring that our aspirations for Nigeria and the African continent become a reality,” Emefiele added.

African Development Bank (ADB) said Africa needs infrastructure financing of about $130-170 billion a year with an infrastructure financing gap of up to $108 billion per year. The bank observed that  it is evident the region would need non-African players in the global financial system on the side of Africa to make this possible. In this regard, Emefilele said FBNBank UK’s location in London positions it to be the partner of choice to such global financial institutions with the capacity to move the needle in the African continent.  

There are about 200 foreign banks operating in the United Kingdom, which accounts for 15 per cent of the outstanding value of international bank lending. This provides an unbridled level of opportunity for partnerships to finance African economic growth and development needs. London also accounts for about $3.8 trillion in daily forex, which is more than one third of worldwide trades and plays a key role in the global trade finance business.  

The financial experts agreed that Africa’s route to prosperity would be facilitated by trade, noting that this is important, not just for Nigeria but also for other African countries. Furthermore, the presence of many multinational companies using London as a hub for their geographical operations covering Africa also offers opportunities to facilitate trade and positively influence foreign direct investment into the continent. 

The operation of Nigerian banks in London also provides opportunities for knowledge transfer and adoption of best practices, which could be imbibed in the home market of African nations and improve the maturity and sophistication of the banking industry. As we become more integrated with the international financial system, we will need to imbibe high standards in our operations especially in the areas of corporate finance, risk management and compliance.  

The experts also noted that the presence of a large Diaspora population in the United Kingdom also provides beneficial partnership opportunities for FBNBank UK, which could feed into the economic development agenda of Nigeria and other African countries. Tapping into the networks, skills and entrepreneurial spirit of Nigerians and Africans globally will generate opportunities for investment into the continent in addition to creating markets for exports into the United Kingdom and wider European continent for Nigerian and African manufacturers. 

Testament to Nation Building 

Nigeria’s President Muhammadu Buhari in his goodwill message to FBN Bank UK on the event of its 40th anniversary testified that the bank’s exploits of the past 40 years have certainly been fruits of the high level of professionalism, strong corporate governance, resilience, and reliability that are synonymous with the FirstBank brand.  

According to him, FirstBank has profoundly demonstrated a high level of nationalism by keeping the Nigerian dream at the heart of its business through constant evolution to birth agile financial services solution to suit the demands of its customers both home and abroad.

“Also, perhaps more than any other institution in its class, FirstBank has supported the government by providing human resources at various times to booster much required professional expertise in various sectors of our economy. 

“Indeed, the growth and development of the Nigerian banking industry over the years can be largely attributed to FirstBank’s exemplary leadership as an industry pacesetter across two centuries.  FirstBank has made history in the banking industry as a trailblazer to the extent that they have continued to shape financial industry policies, if you recall that much earlier in the life of the bank it was served as the central bank of the entire West African region. I must note that FirstBank is also renowned for its exceptional professionalism and strict adherence to processes, regulations, and policies. Although some people complain about this, it does explain why the bank has survived for this long and remains the bank to beat in the industry,” Buhari said.

True to its slogan of “Woven into the Fabrics of the Society” President Muhammadu Buhari testified to the impact of the 128-year old bank in the growth of the Nigerian economy.

“The Federal Republic of Nigeria appreciates the contributions of the FirstBank Group to our national growth and development beyond the provision of financial services. Its robust and far-reaching corporate responsibility and sustainability programmes complement government development plans in financial inclusion, education, health and social welfare, as well as environmental sustainability, to mention a few,” he added.

Delivering his welcome address to the dignitaries and guests present, at the 40th anniversary celebration, Chief Executive Officer, FBN Bank UK Ltd, Sam Aiyere said, “Since its establishment, our bank has demonstrated an unmatched dexterity, serving as a gateway connecting international markets in Africa, Europe and the rest of the world to the finest financial services solution that the UK has to offer.  

“Through its office in the UK and the Paris Branch, our bank has continued to facilitate international trade between Africa and Europe while offering top-notch, world-class corporate, institutional, and private banking solutions to our esteemed customers.  We have recorded laudable achievement only because you stand solidly with us. Therefore, I dedicate the success of the past 40 years to all our stakeholders. Thank you for being the lever beneath our thrust”, he also said.  

Appreciating the patronage and support extended to FBNBank UK, CEO, FirstBank, Dr. Adesola Adeduntan said, “Today we celebrate 40 years of unbroken business operations in the United Kingdom; 40 years of supporting and enabling dreams; 40 years of resilience and relevance; 40 years of trust, safety and security; 40 years of long-term value to all stakeholders; and 40 years of partnerships beyond borders. I believe the future is bright for FBN Bank UK. With our beautiful outing tonight, our Group stands out, once again, as one big and happy family of many parts,” Adeduntan said.