Proshare’s latest report places Access Holdings at the forefront, alongside other prominent institutions such as Zenith Bank, FBNH, Ecobank, UBA, and GTCO.

As the Nigerian banking sector evolves, Access Holdings stands out for its proactive approach to addressing macro and microeconomic risks. The report draws parallels to the challenges faced by United States banks, such as Silicon Valley, First Republic, and Signature Banks, in 2023 due to poor asset and liability management (ALM).

With the Central Bank of Nigeria’s ongoing banking sector recapitalisation programme, the report highlights the importance of investment in financial technology, customer service scalability, and digital asset engineering between 2024 and 2026. The analysts emphasise that, “With higher capital levels, banks must use the larger amounts of cash available to improve shareholder returns and customer service experiences. Many banks will get cut at the knees by lacking a deliberate strategy to transition from cash flow to value creation.”

The report further highlighted Nigeria’s economic trajectory, noting, “Nigeria’s GDP in 2005 was N38.78trillion and rose to 77.94trillion, roughly two times in 2023, suggesting an average annual growth rate of 3.55 per cent in the last two decades. However, between 2000 and 2005, bank equity sizes grew over ten times or by 1,150 per cent from N2billion to N25billion. In other words, for a decade and a half, banks have used ten times more equity in their businesses than before 2005, yet the country’s GDP growth has been modest.”

The report, however, clarifies that simply raising Nigerian banks’ equity base is not a guarantee for economic growth and development. “Transforming bank equity into drivers of economic growth requires more than money; it requires a coordinated public and private sector plan, with what Proshare analysts have repeatedly called a whole-of-government approach to policies, programmes, and processes.”

Reviewing bank performances in 2023, Proshare analysts observed that banks were pursuing increasingly aggressive approaches to acquiring digital market share while supporting lower operating costs (lower cost-to-income ratios (CIRs)).

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Sunrise News, Lagos, 09, June 2024: This year marks 22 years since two young Nigerian bankers – Aigboje Aig-Imoukhuede and Herbert Wigwe – bought a small, nondescript bank and turned it into one of the biggest financial institutions on the continent with footprint also established in Europe and Asia.

It was on March 22, 2002, that the two walked into Plot 1669 Oyin Jolayemi Street, Victoria Island, Lagos, which was then the corporate headquarters of the bank to assume duty and full control as the Managing Director and Deputy Managing Director.

The acquisition process had taken about two years and entailed rigorous negotiations, and countless hours of working through documentation. It was one of the most audacious takeovers in the history of the nation’s financial industry.

Indeed, the phenomenal growth of the Access Group has become an inspiring success story. Shortly after the takeover, Access Bank embarked on a five-year transformation agenda, and two years into the plan, the CBN announced the N25 billion capitalisation deadline set for end of December 2005.

The institution’s management went to work, raising the required capital and developing the impetus to seek opportunities for possible mergers and acquisitions.

Recognising the opportunity that existed to build scale, the institution mobilised its workforce and quickly raised N15 billion via a public offer, acquired two other small banks, Capital Bank Ltd. and Marina International Bank Ltd., and convinced FMO, the Netherland Development Finance Company, to become an institutional investor through the conversion of a $15 million term loan it had earlier given to the bank.

With the N25 billion capitalisation met and surpassed, the race to the top became a fixed goal to the new owners. They then embarked on aggressive drive to raise money both from local and foreign capital markets.

Between 2006 and 2007, Access Bank raised a local bond issue of N11.9 billion and in 2007 it raised N136 billion in public offerings, including a highly successful and oversubscribed GDR (global depository receipt) and established Access Bank UK.

In June 2008, the beginning of the second five-year transformation plan, every action was geared at taking the institution to the top. Between 2009 and 2011, the bank passed CBN’s special audit on governance, liquidity and capital adequacy conducted under the tough-talking Sanusi Lamido Sanusi.

Three major achievements were also recorded. The bank was awarded IFC Sustainable Bank of the Year; it acquired Intercontinental Bank and was ranked the fourth largest bank in Nigeria as a result of the acquisition.

With these successes, a huge surge of confidence and can-do spirit have by now swept through the entire workforce. Staffers went through a rigorous process of reorientation and change of the bank’s vision and mission; and with business combination with Intercontinental completed in 2012, management staff assumed bigger roles and responsibilities.

Access Bank became one of the favourite places to work for bankers from other institutions.

The bank was enjoying the pulsating work pace and dynamic work environment, enthralled in seeing the dream of being in the top five becoming a reality year after year.

That same 2012 and spanning 2013, the bank raised $350 million Eurobond in the international market and divested from non-banking subsidiaries. It was also designated as a significant important financial institution by the CBN, one of the very few in the industry.

This means a recognition of its huge footprint in the economy, the integrity and respect of its leaders and the fact that the bank could not be allowed to fail under any circumstance. It is for this reason that the CBN recently intervened in the board and management composition of one bank.

Another huge milestone came in 2014 when Access Bank issued $400 million subordinated note (tier 2 bond) and transited into a large, diversified banking institution.In January 2014, Herbert Wigwe assumed duty as the Group Managing Director & Chief Executive Officer, after the retirement of Aigboje Aig-Imoukhuede.

With enormous goodwill and attractive brand equity, the bank continued to outpace its contemporaries. In 2017, it further shored up its capital by raising N42 billion through rights issue and issued another $300 million subordinated note.

But it was its merger with Diamond Bank in 2018 that catapulted Access Bank to the number one slot in at least some parameters: assets and retail business with 646 branches.

It also recorded the biggest channel touchpoints: 38 million cards; 3,000 ATMs and 34,000 POS terminals. In 2019, Access bank issued the first green bond in Nigeria. In 2020, it expanded its African business into Kenya and Mozambique and became the first Nigerian bank to set up shop in South Africa.

A few weeks ago, the South African ambassador to Nigeria was on TV commending the bank for establishing a branch in his country.

In 2022, Access Bank marked the final year of its previous five-year strategy, which focused on building Africa’s gateway to the world, through the deployment of robust risk management practices, and a flawless execution of its strategic priorities.

By all key metrics, the strategy was successfully executed as the bank grew its scale to span over 6,000 dedicated professional staff serving over 52 million customers across 17 markets worldwide.

In the second half of 2022, Access Bank was restructured into a Holding Company – birthing Access Holdings – to realise the potential of the synergies from the various businesses, while expanding product offering to customers in payments, insurance, consumer finance and pensions.

True to plan, Access Holdings, in 2023, launched its operations in Paris, setting the tone for a robust long-term goal across the Northern Hemisphere.

The Group has also strategically ventured into new territories, bringing its expertise, resources, and innovative solutions to areas with immense growth potential.

These strategic moves exemplify the company’s vision to be a pan-African force, contributing to economic development across borders. Through its subsidiaries, the institution has played a pivotal role in sectors ranging from finance and banking to agriculture, technology, and healthcare, bringing diverse opportunities to the communities it serves.

In countries where Access Holdings has established a presence, the institution has become a driving force for job creation and entrepreneurship. Access Holdings has sown the seeds of sustainable economic development by supporting Small and Medium Scale Enterprises (SMEs), investing in local businesses, and providing financial solutions tailored to the needs of each market.

The company’s ability to adapt its business model to the unique dynamics of each African market sets it apart, as it recognises that Africa is not a monolithic entity, but a collection of diverse economies with distinct challenges and opportunities.

Through its expansion strategy, the institution tailors its approach to address the specific needs of each region, contributing to a more inclusive and holistic development across the continent.

Commencing in the second half of 2024, the Group’s Africa and international expansion strategy will enter the consolidation and efficiency phase, aligning with the institution’s five-year plan to accelerate the attainment of its 2027 strategic objectives.

The post The Remarkable Journey of Access Holdings appeared first on Sunrise News.

The Chairman of Access Holdings PLC and Coronation Group, Mr. Aigboje Aig-Imoukhuede, has been honoured with the prestigious African Banker Lifetime Achievement Award.

This distinguished accolade was presented at the African Banker Awards gala dinner and awards ceremony held in Nairobi, Kenya, on the sidelines of the 2024 Annual Meetings of the African Development Bank.

Aig-Imoukhuede’s journey epitomises his dedication to transforming the African banking and financial landscape. His illustrious career, spanning over three decades, has been marked by exceptional leadership and transformative accomplishments. As the Group Managing Director and Chief Executive Officer of Access Bank from 2002 to 2013, he led the lender’s transformation from a minor player into one of Nigeria’s top five banks, extending its presence to nine other African countries and the United Kingdom. With a vision to democratise wealth creation opportunities for millions in Africa, Aigboje established Coronation Group – a conglomerate encompassing most aspects of investing, lending, and insurance with a presence in Nigeria and other African countries.

Speaking on the award, Aig-Imoukhuede said: “This award honours the collective efforts of over ten thousand talented individuals, mostly Africans whom I have had the privilege to work with throughout my journey. As professionals, recognition spurs us to strive for greater levels of excellence. I am deeply humbled and motivated to continue contributing to Africa’s growth and development.”

“We would like to honour your remarkable career achievements as a leader in Africa. Today, Access Bank stands as a behemoth in African banking. As brilliantly described in your book, “Leaving the Tarmac” Access bank started its life as a third-tier bank, but your visionary leadership, as well as that of the late Herbert Wigwe, transformed it into an institution that commands immense respect and admiration,” said Omar Ben Yedder, Group Publisher & Managing Director, African Banker.

As part of the celebration of his lifelong contributions to the African financial markets, Aig-Imoukhuede had the distinct privilege of a visit to His Excellency, President William Ruto, at the state house in Nairobi. Their discussions centred on strengthening financial markets, enhancing public sector effectiveness, and fostering sustainable economic growth across Africa. This visit exemplifies Aigboje’s belief in the power of collaborative leadership and the pivotal role that strong financial institutions play in driving national development.

Reflecting on the courtesy visit to President William Ruto, Aig-Imoukhuede stated that, “In meeting with President Ruto, I was inspired by our shared commitment to driving economic growth and fostering sustainable development across Africa. Our discussions reinforced the critical role that collaborative leadership and robust financial institutions play in nation-building. I look forward to continuing our collective efforts to create a prosperous future for our continent.”

Aig-Imoukhuede’s impact extends beyond banking. Through the Aig-Imoukhuede Foundation and its subsidiaries – the Africa Initiative for Governance, and the Aig-Imoukhuede Institute – Aigboje and his wife, Ofovwe, manage a $100 million family commitment aimed at building Nigeria’s next generation of government leaders, transforming public sector effectiveness, and improving access to quality primary healthcare. His vision for the Adopt-A-Healthcare-Facility Programme (ADHFP), announced in Davos in 2020, aims to establish 774 world-class primary healthcare facilities in Nigeria, showcasing his dedication to addressing critical societal needs.

Aig-Imoukhuede’s advocacy for sustainable banking practices has left an indelible mark on the financial sector. As a member of Nigeria’s Bankers’ Committee, he led the adoption of the Nigerian Sustainable Banking Principles in 2012, an initiative that has been emulated by several countries globally. His leadership in promoting responsible and sustainable business practices underscores the critical role of financial institutions in fostering economic development while protecting the environment.

Aig-Imoukhuede’s leadership was previously recognised in 2013 when he received the ‘African Banker of the Year’ Award. Following a decade of accomplishments in banking and beyond, the African Banker Lifetime Achievement Award highlights his enduring commitment to nation-building and sustainable development. His legacy of transformative leadership, sustainable banking practices, and philanthropic dedication continues to inspire and drive positive change across Africa.

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