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FirstBank Bounces Back to its Leadership Position, Delivers a Fantastic Performance in 2021

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FirstBank Bounces Back to its Leadership Position, Delivers a Fantastic Performance in 2021

FirstBank Bounces Back to its Leadership Position, Delivers a Fantastic Performance in 2021

 

 

 

 

As financial market analysts continue to digest the 2021 financial results of the FirstBank Limited, which they say reflect the return of the banking conglomerate to its leadership position, Festus Akanbi writes that the regime of strong fundamentals which the robust performance represents is in tandem with the ongoing restructuring being midwifed by the current board and management of the company

 

 

 

 

 

FirstBank Bounces Back to its Leadership Position, Delivers a Fantastic Performance in 2021

The Nigerian investing community was held spellbound earlier in the week when FBN Holdings Plc released its much-awaited 2021 financial statements to the public, showing a stellar performance, especially in its banking subsidiary, First Bank of Nigeria Limited, which is said to be indicative of its strong recovery from its hitherto dwindling financial position.

 

 

 

 

 

 

 

 

Banking and capital market analysts, in their immediate reactions, said the impressive results signpost a regime of strong fundamentals after a period of restructuring by the leadership of its current management and board.

 

The Scorecard.

 

To mitigate the effect of the low-interest rate on investment securities and revenue generation, the bank was said to have intensified deposit mobilisation and funding strategy to support enhanced loan growth at optimised rates leading to a 5.7% increase in interest expense to N140.8 billion as against N133.2 billion in December 2020.

 

During the period, non-interest revenue grew by 96.1% to N364.6 billion as against N185.9 billion in the preceding year on the back of increased fees and commission income, treasury activities, and other operating income.

 

According to a report by Nairametrics, in its bid to further enhance its revenue generation capacity, First Pension Custodian Limited, a subsidiary of First Bank of Nigeria Limited, entered into a definitive agreement with Access Bank Plc for the planned acquisition of the entire share capital of Access Pension Fund Custodian Limited held by Access Bank Plc. This, according to the management of the bank will further boost its market share in the industry, aid revenue diversification, and support annuity income.

 

The bank says it will continue to create quality loans with a focus on retail lending driven by technology as it continues to grow non-interest income to further diversify revenue.

To show for the relentless efforts of the board and management of the bank, deposits from customers increased by 19.5% y-o-y to N5.9 trillion (Dec 2020: N4.9 trillion) reaffirming the bank’s strong market access and robust funding base.

A statement from the bank said, “Our investment in agent banking, digitalisation, and deployment of digital platforms which our customers have adopted, improved customer penetration and deepened our solid retail franchise. This continues to provide us with access to stable funding, reducing our cost of fund ratio to 2.1% (Dec 2020: 2.3%) while supporting the float of our current and savings account at 91.2% (First Bank of Nigeria).”

In the same vein, total assets grew 16.2% y-o-y to N8.9trillion as against N7.7trillion in 2020, driven by a 30.0% y-o-y increase in customer loans and 26.3% increase y-o-y in investment securities. Cash and balances with Central Banks, loans to banks & customers, and investment securities constitute 87.2% of total assets (Dec 2020: 83.4%).

“With a cleaner balance sheet and resilient earnings-generating capacity, FirstBank (Nigeria) was able to accrete capital buffers from organic earnings. Hence, despite the increase in loans and advances, Capital Adequacy Ratio (CAR) remained steady, marginally increasing to 17.4% (Dec 2020: 17.0%),” the report said.

Meanwhile, the audited report for the group indicated an impressive double-digit growth in the top line and the bottom line. Gross earnings rose from N590.66 billion in 2020 to N757.30 billion in 2021. Profit before tax doubled by 99.1 per cent to N166.66 billion in 2021 as against N83.7 billion in 2020. Profit after tax grew by 68.4 per cent from N75.6 billion to N151.079 billion. Earnings per share thus increased from N2.45 in 2021 to N4.17 in 2021.

 

Its balance sheet also gives cause for joy to its stakeholders as its total assets rose from N7.69 trillion in 2020 to N8.93 trillion in 2021. Customers’ deposits grew to N5.85 trillion in 2021 as against N4.9 trillion in 2020. Loans and advances to customers also improved from N2.21 trillion to N2.88 trillion. With total liabilities rising from N6.92 trillion to N8.05 trillion, shareholders’ funds increased from N765.17 billion in 2020 to N879.86 billion in 2021.

 

A quick analysis of the performance shows a progressive trajectory that has portrayed First Bank as an organisation that has recovered from past episodic challenges that led to a change of baton at its board level.

 

Analysts are quick to point at the recent restructuring exercise in the organisation as the launchpad for the excellent balance sheet operations which translated into a 30.3 per cent rise in its gross earnings, while total assets and customer deposits rose by 15.9 per cent and 19.5 per cent respectively.

 

The audited report also confirmed Mr. Femi Otedola as the largest individual shareholder of the group, with total direct and indirect shareholdings of 7.57 per cent.

 

Fall in NPLs, Boost to Profitability

 

For a bank that was almost brought to its knees by the burden of non-performing loans, it came as a great relief to both the shareholders and the regulatory authorities that for the first time in a long while, First Bank’s NPLs came down to 6.1 per cent, significant progress for the bank when compared to other Tier 1 banks and the regulatory threshold of 5.0per cent.

 

Analysts also attributed the significant fall in the NPL rates from 40 in 2016 to 6.5 per cent in 2021, to a new culture of corporate governance currently in place in the group and which has successfully revamped the company’s risk management capabilities.

 

According to the bank, the recent turnaround and improvement in the non-performing loans have been a major boost in FirstBank’s quest to improve profitability and reinforce its leadership in the financial services industry in Nigeria.

 

Analysts said with the impressive results for its 2021 operations, the board and management of FBN have proven to the investing community that the company is ready to take its leadership role in the nation’s banking sector and that the years of locusts have been put behind the institution.

 

A Transition to Sustained Growth

 

In their view, First Bank, with these impressive results has demonstrated the fact that is transitioning into a sustained growth phase and delivering performance commensurate with the size of its business capabilities of its people.

 

And for the shareholders of the company, it was a harvest time with N12.56 billion set aside as divided, about 8.3 percent of the total net earnings recorded in 2021.

 

A capital market analyst, Mr. David Edobor explained that the major transformation in First Bank, as evident in its mouth-watering performance should be attributed to the doggedness and determination of the new leadership of the bank. His view was corroborated by a source from the company who explained that the performance was driven by a relentless focus on the needs of customers and improving the competitiveness of the bank’s offerings.

 

“We have sharpened our “Go to Market” approach to better leverage the opportunities which our large scale provides, in addition to becoming more relevant to our clients by improving our value propositions.”

 

Over the years, FirstBank has been able to grow customer accounts from about 10 million in 2015 to over 36 million (including digital wallets). It also became the second-largest issuer of cards in Africa with over 11.8million issued cards, onboard over 18.6 million active customers on First Bank digital banking platforms.

 

New Hands, New Culture of Excellence

 

Market watchers said although some of the impressive figures represented the performance of the bank before the coming of the current leadership, analysts said the good news coming from the organisation will greatly challenge the incumbent board and management to push the frontier of excellent performance in the company.

 

It would be recalled that the bank was able to stabilise after a leadership tussle at the board level. However, with the triumph of Adeduntan and his return to his post, the foremost bank has been recording stellar performances.

 

Part of the changes was the emergence of the chairman of Geregu Power Plc, Femi Otedola as the highest single shareholder of the company.

 

An elated Chief Executive Officer of First Bank, the banking arm of the holding company, Dr. Adesola Adeduntan, described the success of the commercial banking business as the beginning of the transition into a sustained growth phase.

 

He said, “Following years of strategic restructuring of the Bank’s balance sheet and operations, the Commercial Banking business is beginning to transition into a sustained growth phase delivering performance commensurate to the size of our business and capabilities of our people. Profit before tax is up 77.9%, gross earnings 30.3%, total assets 15.9%, and customer deposits up 19.5%.”

 

This performance, according to him, was driven by a relentless focus on the needs of customers and improving the competitiveness of the bank’s offerings. “We have sharpened our ‘Go To Market’ approach to better leverage the opportunities which our large scale provides in addition to becoming more relevant to our clients by improving our value propositions.

 

“This performance is also in line with the Bank’s Quantum Profitability Leap agenda which seeks to ensure that we fully maximise the revenue-generating capacity of our business to boost the bottom line and fulfil the expectations of all stakeholders in the business,” Adeduntan stated.

FirstBank engages in the business of commercial banking and has many subsidiaries that focus on international commercial banking, trusteeship, capital markets, pension fund custodianship, mortgage financing, insurance brokerage, and management of SMIEIS fund investments, small-scale banking, and bureau de change activities.

 

Culled from ThisDay

 

 

 

 

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DSO Or Die Trying: Why Nigeria Must Ditch The Past And Embrace A Digital Future

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DSO Or Die Trying: Why Nigeria Must Ditch The Past And Embrace A Digital Future By Tajudeen Adepetu

Background

In 2006, Nigeria joined the global mandate led by the International Telecommunication Union (ITU) to migrate from analogue to digital terrestrial broadcasting. The goal was clear: improve broadcast quality, free up spectrum, enable more channels, and unlock economic opportunities across the creative and tech industries.

By 2015, the Nigerian government approved a White Paper to guide the Digital Switch Over (DSO), with the National Broadcasting Commission (NBC) leading implementation. But what was meant to be a bold leap forward has since stalled—crippled by bureaucracy, outdated policy, resistance from entrenched interests, and a lack of political will.

Now, nearly two decades after that global mandate, Nigeria is still stuck in limbo—while other countries have fully embraced the digital broadcasting era. This isn’t just embarrassing. It’s economically dangerous.

It’s time for a hard reset. The DSO must move forward—not on nostalgia, but on today’s realities and tomorrow’s possibilities.

Nigeria’s Digital Switch Over (DSO): Time to Stop the Stalemate and Move Forward

Let’s be honest—Nigeria’s Digital Switch Over (DSO) project was meant to be a game-changer. It had the potential to transform our broadcast sector, boost content distribution, create new jobs, and elevate the viewer experience. But that dream has stalled. Why? We’re trying to build the future using the tools—and thinking—of the past.

It’s 2025. We can’t run a marathon with shackles from 2015.

The Rules Are Outdated. The Game Has Changed.

The DSO was guided by a White Paper written in 2015. That’s almost a lifetime ago in tech years. The world has moved. Back then, DTT (Digital Terrestrial Television) was the star. Today, it’s DTH, OTT, streaming, and hybrid systems. We’re now living in an era where your mobile phone is your TV, your radio, and your cinema—rolled into one.

Yet Nigeria’s policy framework is still wired to old specs—forcing us to use outdated Set-Top Boxes, sidelining broadband integration, and ignoring global best practices.

This is more than inefficient—it’s self-sabotage.

The Real Risk? Getting Left Behind

If we don’t update our policies now, we risk building a digital infrastructure that’s obsolete before it’s even live. Millions of dollars will go down the drain. Creators and broadcasters will be stuck in tech that can’t compete. The global content economy will leave us behind.

Why should we be held hostage by outdated decisions when new opportunities are knocking?

Let the NBC Do Its Job

The National Broadcasting Commission (NBC) is the body legally charged with steering this transition. So let them steer. Give them the power to modernize policy. Let them engage meaningfully with stakeholders. Shield them from bureaucratic drama and political landmines.

The NBC is not the enemy. Obstructing it doesn’t protect progress—it kills it.

Enough with the Infighting

Some are resisting the new DSO path because of old investments. That’s understandable—but it’s not sustainable. Legacy systems should never outweigh national growth. We need fresh strategies, not stale grudges. We need stakeholders who build, not bicker.

Let’s Talk About Set-Top Boxes

Here’s the truth: The DTT-only boxes being pushed are outdated. They’re limiting. They cut users off from richer, smarter content experiences. Today’s consumer wants flexibility—TV, internet, streaming, all in one device. Anything less is a disservice to both audience and industry.

We need hybrid STBs that reflect current tech realities. Anything else is a dead end.

What Needs to Happen—Now

Rip up the 2015 playbook. It’s done. It no longer fits the world we live in. Update the White Paper and align with today’s digital ecosystem.

Back the NBC—fully. Stop the noise. Give them the room and support to lead effectively.

Think forward, not backward. This is about future growth—not preserving outdated systems.

End the sabotage. We can’t keep slowing down the train over old battles. Progress doesn’t wait.

Talk like builders, not gatekeepers. Every stakeholder must commit to solutions, not gridlocks.

Final Word

This is not just a switch from analog to digital—it’s a test of Nigeria’s readiness to embrace the future. And right now, we’re flunking that test.

We don’t need another delay. We need bold leadership, policy courage, and a unified industry mindset. The NBC’s direction is right. They deserve our full support.

Let’s stop dragging our feet. Let’s stop arguing over yesterday’s hardware. Let’s build a digital broadcast system that actually works—for now and for the future.

Nigeria is home to Africa’s most influential creatives—filmmakers, musicians, content producers, and digital storytellers who shape global pop culture and drive billion-dollar industries.

From Nollywood to Afrobeats, Nigerian talent is setting the pace. Yet, the outdated handling of the Digital Switch Over is a disservice to this ecosystem. By clinging to obsolete policies and technologies, we’re choking distribution channels, limiting access to local content, and blocking the full monetization potential of creative work. In a country bursting with world-class talent, failing to provide a modern broadcast infrastructure isn’t just shortsighted—it’s sabotage.

Nigeria deserves better. And the time to act is now.

Opinion by Tajuddeen Adepetu
Broadcaster, Media-Tech Entrepreneur, CEO of Group8, Nigeria’s leading broadcast network: Owners of OnTV, Soundcity, Spice,Televista and a host of others

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Trump’s Tariff Trap: Why U.S. Trade Policy Spells Trouble for Nigerian Exports

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Trump’s Tariff Trap: Why U.S. Trade Policy Spells Trouble for Nigerian Exports

Trump’s Tariff Trap: Why U.S. Trade Policy Spells Trouble for Nigerian Exports

 

As President Donald Trump continues to champion protectionist trade policies, global markets are already bracing for impact. While much of the attention has been focused on China, Mexico, and the European Union, one less examined—but profoundly affected—victim of Trump’s aggressive tariff agenda is Nigeria.

Africa’s largest economy, already burdened by inflation, forex volatility, and limited industrial capacity, now faces an additional challenge: declining export access to one of its most important trade partners.

 

Trump’s Tariff Plan: A Snapshot

Trump has repeatedly promised to impose a 10% universal tariff on all imports if re-elected, and a 60% tariff on Chinese goods, with broader plans to reshape global trade dynamics under an “America First” banner. The move is touted as a way to protect U.S. industries, reduce reliance on foreign goods, and strengthen domestic jobs.

But trade economists warn that such a policy will create ripple effects across emerging economies, especially those like Nigeria that rely on trade openness to boost growth and foreign exchange inflow.

 

Nigerian Exports at Risk

Although the U.S. is not Nigeria’s largest export destination (India and the EU currently lead), it remains a strategic trade partner, especially for:

  • Crude oil and petroleum products

  • Agricultural exports (cocoa, sesame seeds, rubber, etc.)

  • Solid minerals and metals

In 2023, Nigeria exported goods worth over $3 billion to the United States, much of which was eligible for duty-free access under AGOA (African Growth and Opportunity Act). But Trump’s tariff model could jeopardize AGOA’s continuity or undermine its benefits, directly impacting Nigeria’s ability to compete in American markets.

“Tariffs will make Nigerian goods more expensive to U.S. buyers, reducing demand and hurting our exporters,” says Dr. Tola Adebayo, a Lagos-based international trade analyst.

 

The Oil Factor: A Double-Edged Sword

Crude oil forms the bulk of Nigerian exports, including to the U.S. But Trump’s energy policy, which favors U.S. fossil fuel expansion, could lower U.S. oil imports, shrinking Nigeria’s already narrow export window.

Add to that the rising competition from Latin American and Middle Eastern oil producers, and Nigerian crude could lose market share, particularly if tariffs distort existing trade flows.

“Even if oil isn’t directly tariffed, retaliatory policies or shifts in demand can affect us indirectly,” said Ngozi Obi-Ani, a trade and energy policy expert.

 

Manufacturing and Agro-Processing in Jeopardy

Nigeria’s non-oil exports—especially agricultural products like cocoa, cashew, and sesame—are slowly gaining traction in U.S. markets. But these products are highly price-sensitive. A sudden tariff will make Nigerian commodities less competitive, especially when rivals like Vietnam, Brazil, and Indonesia maintain cheaper access.

Moreover, U.S. tariffs could disrupt supply chains for Nigerian manufacturers dependent on U.S. machinery, parts, or technology, further stalling local industrialization efforts.

 

Impact on Employment and Forex Earnings

The knock-on effect of reduced exports is lower foreign exchange earnings, which Nigeria sorely needs to stabilize its naira and meet import obligations. It also threatens thousands of jobs in export-linked sectors, from agriculture and logistics to oil and gas.

“With youth unemployment already above 40%, a slump in export-driven sectors could worsen the crisis,” warns Folashade Yusuf, economist at the Nigerian Export Promotion Council (NEPC).

 

A Call for Strategic Diversification

Analysts argue that Trump’s trade policies underscore the urgent need for Nigeria to diversify its export base, improve intra-African trade through the AfCFTA, and forge stronger ties with Asia and Europe.

“The world is shifting from globalization to regionalization. Nigeria must adapt quickly, build industrial capacity, and reduce dependence on traditional markets like the U.S.,” Adebayo stressed.

 

Conclusion: Nigeria Must Brace for Impact

Whether or not Trump returns to the White House, his tariff doctrine has already reignited protectionist sentiments in global trade. For Nigeria, the implications are clear: the need to strengthen competitiveness, diversify partners, and rethink trade policy is more urgent than ever.

Failure to act now may not just weaken Nigeria’s export economy—it could cost the nation its place at the global trade table.

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Tech Titan vs. Trade Warrior: Musk Slams Navarro, Rejects Trump’s Tariff Plan

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Tech Titan vs. Trade Warrior: Musk Slams Navarro, Rejects Trump’s Tariff Plan

Elon Musk Breaks Ranks with Trump, Torches Navarro in Tariff Tirade: “He Ain’t Built Sh—”

In a fiery outburst that stunned political and economic circles alike, Elon Musk has publicly broken with the Trump administration on its aggressive tariff policies—taking direct aim at White House trade czar Peter Navarro in the process.

The billionaire tech titan, still reeling from an $11 billion loss in personal wealth after a market nosedive sparked by Trump’s new global tariffs, didn’t hold back in his criticism.

Musk lit up X (formerly Twitter) on Saturday with a string of barbed posts targeting Navarro, one of the chief architects of Trump’s protectionist trade agenda.

“A PhD in Econ from Harvard is a bad thing, not a good thing,” Musk jabbed, taking aim at Navarro’s academic credentials. “Results in the ego/brains >> 1 problem,” he added, implying inflated ego and misplaced intelligence.

When another user chimed in to defend Navarro, Musk doubled down with a brutal retort: “He ain’t built sh—.”

The remarks mark a rare public rift between Musk and the Trump administration, with whom he has shared an occasionally cordial, often complex relationship. But the recent announcement of sweeping tariffs—impacting virtually every U.S. trading partner—appears to have pushed the SpaceX and Tesla CEO over the edge.

Musk voiced his preference for open global trade, calling instead for a “zero tariff situation” between the U.S. and Europe, starkly contrasting the isolationist bent of current policy.

The fallout from Trump’s tariff decree has been swift. Global markets tumbled, and Musk’s own companies—Tesla and SpaceX—saw shares dip sharply, contributing to a multi-billion-dollar blow to his fortune.

While Navarro has not responded publicly to Musk’s tirade, insiders say tensions between Silicon Valley power players and Washington’s trade hawks have been simmering for months.

With Musk’s comments now fanning the flames, the clash between tech and Trumpworld may just be heating up.

Tech Titan vs. Trade Warrior: Musk Slams Navarro, Rejects Trump’s Tariff Plan

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