Business
FirstBank: Empowering Staff, Driving Productivity against the Odds
By Segun Adams
As the coronavirus pandemic forces firms to downsize and cut their wage cost to cope with the adverse economic realities, First Bank of Nigeria Limited (FirstBank) is bucking the trend with a different approach that puts its staff first, writes Segun Adams.
In a pandemic year where employees are agreeing to pay cuts to keep their jobs and businesses are either downsizing or simply liquidating, First Bank of Nigeria Limited is an outlier, taking an unusual approach to demonstrate how organisations can still ensure the best outcomes for both employer and employees.
The first-tier lender last Friday promoted a crop of its staff across all levels in a rare show of corporate resilience in the banking industry and beyond, both locally and across the borders.
According to FirstBank, keeping staff motivated during these unprecedented times is not only crucial for the soul of businesses, but it also demonstrates corporate responsibility.
In the wake of the new coronavirus pandemic, there have been unprecedented layoffs across the world as companies went bust, unable to generate cash to sustain their operations.
The United States, the world’s biggest economy has recorded a historic rise in unemployment with over 45 million initial unemployment claims in the last three months.
In Britain, HSBC, a giant global bank, is reviving plans for a 35,000 job cut due to pre-existing problems thought to have been worsened by the pandemic. Big banks like Morgan Stanley, Deutsche Bank, Citigroup, Barclays, Société Générale among others have announced about layoffs exceeding 60,000 jobs.
In Nigeria, 38% of the workforce was jobless in April due to the virus and lockdowns, the National Bureau of Statistics (NBS) estimates. In the MSMEs sector, 50,000 jobs were lost and 10,000 businesses have shut down according to Auwal Bununu Ibrahim, the National Vice President, North Central of the National Association of Small and Medium Enterprises, (NASME) and in the Aviation industry, some 24,000 jobs were lost as of April.
While banks in the country have been barred by the Central Bank of Nigeria (CBN) from laying off staff without regulatory approval, there is no obligation for banks to implement promotions or raise pay. In fact, most lenders have initiated pay cuts to cope with the excess capacity arising from skeletal operations and depressed levels of economic activities in the economy which is reeling from the coronavirus and lockdown shocks.
But against the odds, FirstBank promoted its staff and didn’t cut down salaries.
In a recent article, Forbes stated that the manner in which firms treat their employees during the ongoing health and economic crisis will not only be remembered for years to come but have a direct effect on their productivity going-forward.
“How businesses respond will have a lasting impact on employee behaviour including, engagement, productivity and loyalty,” the American business magazine noted.
Hertzberg’s Two-Factor Theory also known as dual-factor theory postulates that career progression is a motivating factor for employees to work harder.
As the coronavirus pandemic continues to take a toll on the mental health and focus of employees in the country, and across the world, due to uncertainty of job status, lower income and a disruption to their career development, FirstBank stands out as a safe and rewarding place to work.
The stability and confidence enjoyed by the bank’s staff are the vital environment human resources experts say is necessary for firms that will successfully navigate the tides of current realities.
In a recent BusinessDay Webinar, Nkemdilim Begho, CEO, Future Software Resources Limited advised that businesses can engage their team and see how they can help in creating new ideas and products that the company can deliver. The resultant effect will be greater efficiency of staff and innovation whereas, elsewhere organizations are bound to struggle with a demotivated workforce which could lead to inefficiencies and higher costs for the businesses with adverse implications for bottom-line.
To realise optimal human resources contributions, Begho acknowledged the need for firms to sustain team bond and ensure that morale of their staff is high.
Even before current events, FirstBank has always proven to be conscious of the impact a stimulating and rewarding environment can have on the overall employee performance and thus, provided value accretion to shareholders, customers and other stakeholders.
From its competitive remuneration across cadres including mid-level and senior-level employees to benefits that cover medical insurance and disability insurance, sick leave and vacation, and retirement options, FirstBank puts its workforce first ensuring that they are well motivated and equipped to deliver higher productivity.
FirstBank has featured on some of the best workplace rankings including A Great place to Work and Jobberman. Last year, the big bank ranked among the Jobberman 2019 best 100 companies to work for in Nigeria, a list that scrutinizes over 60,000 companies to pick the best 100 based on strict metrics. The bank has enjoyed positive reviews from credible job/career sites like Indeed where it banks a 4.1/5 positive rating.
A former employee of the bank Aderemi Adebiyi commended the institution for its keen interest in the welfare and career progression of its employees. “I worked in the Bank for 15 years and do not regret it. It’s fast-paced, performance-driven with varied streams of career development,” Aderemi said. “The company also offers paid trainings.”
FirstBank’s talent management strategy is aimed at supporting employee engagement, employee motivation and increased productivity, and leadership development across all levels of employees within the organization, according to its website. As a tenet of career development, FirstBank has devoted itself to creating a culture of continuous learning tailored to the needs and aspirations of the employees and the business itself.
The bank’s FirstAcademy and learning centres strategically located around the country allows for e-learning, mobile learning, physical classrooms and virtual libraries to allow all employees the opportunity to equip themselves for future roles that benefit both them and the organization. This means pandemic or not, learning is continuous and uninterrupted.
FirstBank also prides itself as an equal opportunity employer so that qualified persons irrespective of gender, culture, age, nationality, sexual orientation, disability or social background can participate in its business.
At the same time, FirstBank remains a performance-driven organization and merit-based, allowing individual talents to be rewarded for their hard work and contribution to overall organisational goals.
With people as one of the bank’s greatest assets, it strives to maintain a pool of multi-skilled and well-rounded employees relying on initiatives like Job Shadowing, Coaching, Counselling, Mentoring, Succession Planning and Career Maps to develop and retain talents at all levels of the organisation’s operations.
In a world where approximately 20% of new businesses fail within the first two years, 45% within five years, 65% within ten years, and only 25% make it to 15 years or more (according to the US Bureau of Statistics), any business that has crossed 15 years should be sharing insights on survival and success.
But what about businesses that have lasted twice that long? Or a financial services group that has thrived for over 130 years, especially in Africa, where business survival rates are likely lower than those statistics from the Global North? Such a group has certainly earned the right to teach masterclasses on business longevity.
First HoldCo Plc (FirstHoldCo), recently rebranded from FBN Holdings Plc, exemplifies sustainable business practices. A well-diversified group, it is one of Africa’s largest financial services organisations, offering innovative financial solutions through its subsidiaries in commercial banking, asset management, capital markets, securities, trusteeship, and insurance brokerage. FirstHoldCo ensures strategic coordination and synergy among its subsidiaries to deliver long-term value for stakeholders.
Retaining the legacy strengths and experience of FBN Holdings Plc, FirstHoldCo ensures that its subsidiaries enhance positive environmental, social, and governance (ESG) impacts while minimising or eliminating negative ones. This includes managing ESG risks in the workplace, marketplace, community, and environment, with the institutional capability to turn risks into opportunities.
For example, ESG risk management enhances credit and investment decision-making, de-risking processes for subsidiaries such as FirstBank and FBNQuest. It also strengthens social relationships with the communities in which these subsidiaries operate.
ESG and sustainability may be buzzwords for some corporations seeking to appear politically correct, but at FirstHoldCo, they are integral to its identity. The company is self-driven in aligning its strategy and operations with ESG principles and setting new sustainability benchmarks for financial services in Nigeria.
FirstHoldCo’ s flagship subsidiaries, FirstBank and FBNQuest, integrate ESG risks into their products, services, and offerings from the ideation stage through to development and launch. This approach drives responsible lending and investment practices, enabling the group to leverage ESG market opportunities while promoting sustainable socio-economic growth.
FirstHoldCo also prioritises people empowerment, fostering a work environment rooted in equal opportunities, diversity, and inclusion. A notable achievement is bridging the diversity gap, reaching a 40% female to 60% male employee ratio in 2023, one year ahead of its 2024 target.
The group also supports the communities where its subsidiaries operate, ensuring its impact resonates positively. Since 2017, it has implemented the SPARK (Start Performing Acts of Random Kindness) initiative and Corporate Responsibility and Sustainability (CR&S) Week. In 2023, these initiatives impacted 60,000 lives through outreaches to 60 orphanages, 20 schools, and hospitals across Nigeria, Ghana, Senegal, The Gambia, the Democratic Republic of Congo, Sierra Leone, and the United Kingdom. Donations included consumables, computers, clean water projects, school renovations, wheelchairs, and cash. Employees committed over 27,000 volunteer hours to these initiatives.
In 2023, FirstBank reinforced its commitment to empowering women through FirstGem, a financial product supporting women-led businesses. Over N36 billion in loans were disbursed at a single-digit interest rate of 9%. Additionally, its Agency Banking business, FirstMonie, expanded its female agent network to over 55,000.
Inclusion remains a key focus, with FirstBank enhancing accessibility for physically challenged customers in 234 locations, making 25 branches fully accessible and improving access at 209 others. It also expanded the SPARK initiative to institutions like the Bethesda School of the Blind and the Down Syndrome Foundation in Lagos.
FirstBank operates an Environmental, Social, and Governance Management System (ESGMS) to drive responsible lending and minimize ESG risks. In 2023, this system was enhanced to ensure real-time transparency in corporate credit screenings. That year, 2,239 credit transactions worth N4.236 trillion were assessed for ESG risks.
To strengthen ESG compliance, FirstBank collaborates with development partners such as British International Investment, the African Development Bank, the International Finance Corporation (IFC), and Proparco, a French development finance institution. Its partnership with Proparco is crucial for integrating climate initiatives into business strategy. This project enhances its understanding of financed emissions and positions it for climate financing and investment opportunities.
This initiative will help FirstBank reduce greenhouse gas (GHG) emissions, mitigate exposure to physical and transition risks, and strengthen climate adaptation efforts. It also reinforces its market competitiveness as an ESG leader committed to a low-carbon economy.
As part of its commitment to decarbonisation, FirstHoldCo’ s FirstBank actively engages in reforestation and afforestation through partnerships focused on carbon dioxide (CO2) removal. In 2023, it pledged to plant 50,000 trees by 2025 in collaboration with the Nigerian Conservation Foundation (NCF). That year, it planted 1,000 trees at the Lekki Conservation Centre, Lagos; Model Secondary School, Maitama, Abuja; and Federal Government Girls College, Calabar. By the following year, it had planted an additional 30,000 trees, bringing the total to 31,000.
FirstBank also drives thought leadership in climate finance, promoting knowledge on carbon mitigation and climate adaptation. A notable effort was a webinar themed ‘Harnessing Climate Finance Opportunities in Nigeria,’ held in partnership with the Sustainability Practitioners Institute of Nigeria (SPIN). The event featured prominent ESG and sustainability experts such as Professor Kenneth Amaeshi, Dr. Muntaqa Umaru-Sadiq, and Carina Dunker, underscoring FirstBank’s commitment to advancing climate finance discussions.
With so much achieved and ongoing ESG/sustainability initiatives, what is the greatest impact of ESG at FirstHoldCo?
For the group, it is the net positive effect on the communities where its subsidiaries operate. For individuals, it is the tangible benefits from its financial solutions and CSR initiatives. For businesses, it is the sustainable practices FirstHoldCo champions, setting a standard for responsible corporate leadership.
This article is contributed By A. Ezekiel
Business
Ahead Regulatory Deadline, Fidelity Bank Set to Meet Recaptalization Target, Onyeali-Ikpe Expresses Gratitude
Fidelity Bank Plc is making impressive strides on its path to fulfilling the recapitalization targets set by the Central Bank of Nigeria (CBN).
With a successful first phase of its capital-raising initiative that recorded over 238% oversubscription and share price growth of over 100% evidencing a huge surge in investor confidence for the bank.
Following the successful completion of phase 1 of its capital raise, the bank is exceptionally well-positioned to not only meet the regulatory threshold but also fuel its growth trajectory.
With the recent conclusion of its equity capital raise through a Public Offer and Rights Issue, collectively known as the Combined Offer.
The response has been nothing short of extraordinary, with the Public Offer oversubscribed by an astounding 237.92%.
This translates to 107,588 valid applications for a total of 23,768,724,000 ordinary shares, amounting to N231.7 billion.
The Rights Issue also shone brightly, achieving a remarkable 137.73% subscription rate with 6,903 valid applications for 4,407,252,795 ordinary shares, totaling N40.7 billion.
Dr. Nneka Onyeali-Ikpe, the Managing Director and CEO of Fidelity Bank, expressed heartfelt gratitude for the overwhelming support from investors, stating, “The positive results recorded in our Combined Offer are a testament to the strength of the Fidelity Bank franchise in the capital market.”
Such a robust response not only underscores investor confidence but also reaffirms the bank’s unwavering commitment to delivering innovative financial solutions and sustainable returns to its stakeholders.
Following this remarkable success, Fidelity Bank has secured shareholder approval to launch the second phase of its capital-raising initiatives.
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This includes a significant increase in the bank’s issued share capital from N26.7 billion to N36.7 billion. Shareholders endorsed this expansion during an Extraordinary General Meeting on February 6, 2025, approving the creation of an additional 20 billion ordinary shares of N0.50 each.
This strategic capital boost positions Fidelity Bank to meet the CBN’s new minimum regulatory capital requirement of N500 billion for banks with international authorization by March 31, 2026. This ambitious goal aligns seamlessly with the bank’s vision for sustainable growth and exceptional service delivery, setting the stage for a dynamic future.
Fidelity Bank’s stock performance has further solidified its status as a top contender in the financial sector. From an initial offer price of N9.75 per share during the Public Offer, shares soared to a high of N21.15 on February 7, 2025, representing an impressive growth rate of over 116%.
This positions Fidelity Bank as one of the best-performing financial institutions in the market, with analysts from Apel Asset Limited noting an impressive 80% return on investment for shareholders who have held shares since 2023.
Market analysts project a considerable upside potential of 28.88%, establishing a fair value of Fidelity Bank at N23.15 against a reference price of N19.50. Such promising indicators not only enhance investor confidence but also position Fidelity Bank as a compelling investment opportunity within the Nigerian banking landscape.
The funds raised from the initial phases of the capital-raising exercises are earmarked for several key initiatives. Fidelity Bank plans to utilize these resources for local and international business expansion, enhancing technology infrastructure, and improving customer service initiatives. This proactive approach showcases the bank’s commitment to innovation and operational excellence.
As the bank gears up for the next phase of its capital-raising initiative, the primary focus remains on achieving its recapitalization targets while consistently delivering value to stakeholders. The bank’s leadership is confident that, with sustained investor support and a robust financial strategy, it will adeptly navigate the evolving landscape of the Nigerian banking sector.
Fidelity Bank’s recent achievements in capital raising signal a pivotal moment in its journey toward strengthening its financial foundation. With robust investor backing, strategic capital allocation, and a clear vision for growth, Fidelity Bank is not just on track to meet its recapitalization target—it is poised to exceed it.
The road ahead promises to be one of sustained growth and innovation, reinforcing Fidelity Bank’s position as a leader in the Nigerian financial sector. As the bank looks toward the future, it remains steadfast in its commitment to fostering strong relationships with investors and delivering on its promise of financial excellence and exceptional customer satisfaction.
Fidelity Bank’s proactive measures and impressive market performance pave the way for a brighter, more prosperous future—one where it continues to lead with integrity and vision in the ever-evolving financial landscape.
Leading financial services institutions, Guaranty Trust Holding Company (GTCO) Plc, has launched an initiative to improve quality of life for households and empower women in underserved communities.
This scheme known as Waste for Gas is under its corporate social responsibility (CSR) and stakeholder engagement to reaffirm its unwavering commitment to improving outcomes for people and communities.
The initiative also introduces a structured Waste for Gas exchange programme that promotes responsible waste management, fostering a culture of sustainability.
The company intends to distribute 3,000 3kg gas cylinders with burners to low-income households in Obafemi Owode Local Government, Mowe, Ogun State.
By providing households with gas-powered cooking, the initiative simplifies daily routines, freeing up time for essential activities that support financial resilience.
The project will unfold in two key phases, ensuring that it reaches those most in need.
In the first phase, teams from GTCO, in collaboration with local government representatives, conducted door-to-door visits across 12 wards in Obafemi Owode Local Government from Monday to Friday, February 18 – 21, 2025.
These visits helped identify beneficiaries who currently rely on firewood and charcoal for cooking. Participating households collected and returned plastic waste in exchange for gas cylinders and burners.
In the second phase, which held on Saturday and Sunday, February 22 and 23, 2025, efforts shifted to monitoring and increasing adoption of the new cooking method among the beneficiaries.
The chief executive of GTCO, Mr Segun Agbaje, said, “At GTCO, we are committed to driving progress, not just through innovative financial solutions but by creating real impact in the communities where we operate.
“Waste for Gas is about making life easier for families, giving them more time for what truly matters—whether it’s education, meaningful work, or personal development.
“Beyond this initiative, our goal is to continually evolve sustainable platforms that empower people, strengthen communities, and contribute to socioeconomic progress.”
As GTCO continues to expand its CSR footprint, the Waste for Gas project serves as a blueprint for future interventions that drive meaningful, long-lasting impact in underserved communities.
