E-Financial
Phillips Oduoza: Inspirational Giant of Banking Industry
Phillips Oduoza, founder and chairman, NOVA Merchant Bank Limited is inspired by Nigeria’s future, which he believes holds potential waiting to be harnessed.
NOVA Merchant Bank offers an integrated suite of financial solutions covering Wholesale Banking, Investment Banking, Asset Management, Wealth Management, Trade Services, Transaction Banking, Cash Management and Digital Banking.
Phillips, also former group managing director (GMD), United Bank for Africa (UBA), is gifted, a deep thinker, selfless with a knack for seeing what others couldn’t see and making the seemingly impossible possible in addition to great leadership skills.
In this article, we will look at his new bank, banking career, his leadership skills and background.
NOVA Merchant Bank
NOVA Merchant Bank founded by Phillips is a licensed merchant bank with a focus on wholesale and investment banking.
The bank which began operation in 2018- became an instant success and broke-even in the first year of operations.
Recall at the time of commencement of operations by NOVA Merchant Bank, the economic environment was quite challenging, because the country just exited from recession.
Secondly, there was still turbulence in the industry resulting from interventions in some banks by the Central Bank of Nigeria (CBN).
But the new bank’s growth trajectory has also continued as it reported a profit after tax of N3.49bn for the financial year ended December 31, 2020.
This represents a 112% increase when compared to N1.65bn in 2019.
All the key financial parameters recorded major improvement over the prior year performance; Gross Earnings showed a quantum leap of 130% growth over 2019 and Profit Before Tax at N3.52bn recorded a 135% growth over the 2019 figure of N1.5bn.
The bank achieved such growth amidst the unprecedented nature of the COVID-19 pandemic and resulting macro-economic headwinds.
Also, the Nigerian Exchange Limited (NGX) recently admitted the bank’s N10 billion bond on its platform.
The bank made history as the youngest merchant bank to issue a bond in Nigeria which also oversubscribed by 300 per cent
The success of the bond is an indication of the level of investor confidence in the bank’s reputation, brand and corporate performance.
Banking Career
Phillips started his banking career in 1989 with Citibank as the first set of Executive Trainees where he trained in every aspect of banking after a brief stint with International Merchant Bank (IMB) as a Credit Officer in 1987.
Within the three years at Citibank, he was equipped with knowledge of banking operations, relationship management, credit/marketing, efficient implementation of technology, risk management and lean banking methods.
He moved from Citibank to Diamond bank in 1991, as one of the pioneer staff who built the bank to become a strong and notable brand in the industry.
Phillips rose through the ranks to become an Executive Director, serving as ED, Operations and Technology (1999-2002) the period where most banks had to do the IT transformation to meet up with global standards and practices.
He was also Executive Director, Commercial/Retail Banking from 2002 to 2004.
His next stop was at the Reliance Bank Limited where he had a blinking stint as Deputy Managing Director for 4 months before moving on to join the Management and Board of Standard Trust Bank PLC in December 2004.
He was with STB at the time of the merger with UBA and became a key player in the new UBA, rising through the ranks to serve two terms as MD/CEO before his retirement in 2016.
He was succeeded by Kennedy Uzoka.
Leadership Skills
Phillips is a consummate banker with limitless energy who believes in team work.
He is hard worker who avoids shortcuts and do not jump leadership ladder.
He possess the Midas touch, everything he touches turns into gold
Phillips has mentored and is mentoring crops of young bankers and entrepreneurs.
He is also my benefactor.
Tony O. Elumelu, chairman, United Bank for Africa (UBA), described Philips as “a man with a very cerebral mind, very diligent, loyal and astute”
He is man who loves and encourages progress and a man who always works for the best of everything.
Elumelu said that the performance of UBA today, both financial and brand management are all attributable to Philips and all the team he worked with.
Alex Otti, former CEO of Diamond Bank Plc, praised Philips for his extra-ordinary talent and management skills and leaving the banking industry with his integrity intact.
Philips has won several awards and is one of the most popular bankers in the continent of Africa.
In 2013 and in 2015, he emerged as the Africa investor (Ai) Socially Responsible Investment (SRI) 30 CEO of the year.
He currently serves on the boards of Veritas University Abuja, Lagos State Security Trust Fund, and the Development Bank of Nigeria.
Philips has also served on several boards including Interswitch Plc (representing UBA), Valuecard Plc (Unified Payment Services Plc), Nigeria Interbank Settlement System, Nigeria Economic Summit Group, Financial Markets, and Dealers Quotations (FMDQ).
Background
Phillips was born into a large family in Owerri, Imo state Nigeria.
He attended St. Kelvins Primary School, Owerri, and Government College, Owerri before moving down to Lagos state for his university education.
He bagged a Civil Engineering degree (with First class honours) from the University of Lagos.
He was intelligent and excelled in his studies.
According to Phillips, he never considered banking or accounting in his first degree because he did not want a sedentary career.
Instead, he wanted a career in civil engineering where he felt he would be more actively engaged.
“As a student, I was very proficient in science subjects,” he recalled, “and I could have studied Medicine or any other such course. However, I wanted a profession that is involved in physical activities, as against research. That was why I chose to study engineering because it has physical applications. As a civil engineer, you are involved in building roads, bridges, houses and so many diverse things.”
However, in the course of his engineering study, he took a couple of courses that were business-related and his interest was piqued.
After school, he considered several career options before eventually settling for banking, and this became the epicentre of his entire career.
He went back to UNILAG and obtained an MBA in finance to guide his new career path.
Since then, he has attended numerous banking, management and leadership courses including the Advanced Management Programme of the Harvard Business School.
He is an honorary fellow of the Chartered Institute of Bankers.
E-Financial
CBN, SEC Approve FCMB Group’s N147bn Rights Offer
In a move to meet the Central Bank of Nigeria (CBN) new capital requirement, FCMB Group Plc, yesterday announced that it has successfully completed its public offer and raised about N147.5 billion from investing public.
The Group in a statement on the floor of the Nigerian Exchange Limited (NGX) stated N144.56 billion was absorbed through the issuance of 19,802,710,781 ordinary shares at N7.30 per share bringing total post-offer issued shares to 39,605,421,562 shares.
It added that the public offer was oversubscribed by 33 per cent amid high demand from investors.
The financial institution announced the completion of its public offer, following the approvals of the CBN and the Securities and Exchange Commission (SEC).
FCMB Group had issued 15,197,282,219 ordinary shares of 50 kobo each at N7.30 per ordinary share of N0.50kobo each to old and new investors.
The Company Secretary, FCMB Group, Mrs. Olufunmilayo Adedibu in a statement stated that the offer was oversubscribed by 33per cent, attracting 42,800 investors with 92per cent subscribing via more convenient digital channels such as the bank’s mobile app and ushering in over 39,000 new investors to the FCMB Group.
She said, “the total amount raised and verified by the regulatory authorities is N147,508,464,568.60 and N144,559,788,701.30 was absorbed through the issuance of 19,802,710,781 ordinary shares at N7.30 per share bringing total post-offer issued shares to 39,605,421,562 shares. Regulatory approvals have also been received to downstream the net proceeds of the public offer from the holding company to the banking subsidiary.
“This raises the paid-up share capital and share premium, being the eligible capital base as per CBN’s recapitalization criteria, of the banking subsidiary, First City Monument Bank Limited, to over N240 billion, which exceeds the minimum requirement for a national banking license.
“Subsequent phases (2 & 3) of FCMB Group’s capital program, which are currently underway, are aimed at ensuring First City Monument Bank Limited meets the minimum capital requirement to retain its international banking license in line with its vision to be a global financial services group of African origin, renowned for leadership in its chosen markets.
Commenting on the successful completion of the public offer, Mr. Ladi Balogun, the Group Chief Executive, FCMB Group, in a statement said, ““We are grateful to our existing shareholders and new investors for coming out strongly to support this offer.
“The success of the public offer reflects significant investor confidence in our strategy and growth potential, as well as trust in the board, leadership and our people to fulfill our commitments and realize this potential.
“We also extend our profound appreciation to the CBN, the SEC and the NGX for their continued foresight, innovation, guidance and support which has been instrumental in achieving this significant milestone.
“This marks an important step forward in our journey to unlock new opportunities, create value for our shareholders, and contribute to the economic growth of Nigeria and Africa. We remain committed to executing the subsequent phases of our capital-raising program in 2025.
E-Financial
Verve International Achieves 70 Million Payment Cards Milestone in Nigeria
Verve International, Africa’s pioneering and largest domestic payments scheme, has announced a significant new milestone, further solidifying its market dominance in Nigeria.
The company has now issued over 70 million payment cards in Nigeria, Africa’s largest consumer market.
This achievement comes just 15 months after Verve celebrated issuing 50 million cards, marking a remarkable 40% year-on-year growth in issuance volumes.
In recent years, Verve has become the preferred payment card across various banking services, especially within Nigeria’s burgeoning fintech and neobank sectors.
This success is attributed to Verve’s continuous innovation, deep understanding of local market needs, and strategic partnerships with commercial banks, microfinance institutions, fintech companies, other financial institutions (OFIs), and the public sector.
As Africa’s leading domestic payment card scheme, Verve is dedicated to addressing unique market challenges by offering secure and cost-effective payment solutions for individuals and businesses.
Verve provides both virtual and physical cards, enabling payments for a growing number of international services in local currency.
Over the past three years, Verve has achieved significant progress, securing merchant acceptance with global platforms such as Google, Spotify, Netflix, Showmax, Amazon Prime, Facebook, Microsoft, Uber, and Flywire.
These partnerships underscore Verve’s commitment to providing African users with convenient access to global services in local denominations.
Beyond Nigeria, Verve cardholders can use their cards in over 21 other African countries, ensuring seamless transactions across the continent.
Verve’s expanding partnerships in East Africa, including major financial institutions like KCB Group and Equity Bank, as well as a growing network of savings and credit societies (SACCOs) in Kenya and Uganda, highlight the company’s dedication to driving value and efficiency for African financial institutions.
Vincent Ogbunude, CEO of Verve International, expressed his excitement about this latest milestone, stating, “At Verve International, we continue to deliver global-standard payment solutions tailored to the economic and operational realities of African markets.
“We are delighted to celebrate this phenomenal achievement of adding 20 million new payment cards in Nigeria.
“We are grateful to our issuing partners and loyal cardholders for their support.”
Recently, Verve launched the fifth edition of its Goodlife National Consumer Promo, a reward program designed to engage and reward its millions of cardholders.
Running from August 15 to December 31, 2024, the promo offers instant discounts and rewards at selected merchants and retail outlets across Nigeria, including NNPC Retail Limited, Addide, The Place, Sweet Sensation, and Chowdeck.
As a subsidiary of the Interswitch Group, Africa’s leading integrated digital payments and commerce enabler, Verve International remains committed to pushing the boundaries of customer experience and payment possibilities.
Verve cards are trusted for their safety, convenience, and reliability, and can be used across a wide range of payment channels, including Point of Sale (POS) terminals, Automated Teller Machines (ATMs), agency banking channels, web/e-commerce, and mobile apps.
E-Financial
AfDB to Release $2.2Bn Nigerian Agro-Industrial Fund from 2025
African Development Bank (AfDB) is set to start releasing a $2.2bn fund for the development of Special Agro-Industrial Process Zones in Nigeria (SAPZ).
Abdul Kamara, director general, AfDB Nigeria office, made this known during Channels Television’s 2024 End-Of-Year Review with the theme, ‘Focus on the Agriculture Sector, Food Security, Research and AfDB Investments’.
“Specifically, from next year (2025), we will see contracts signed and mobilization and construction on site will start in some states. Of course, not all the states will start together,” he said.
He said the money would be used for the development of agro-industrial hubs where processing will happen, aggregation centres and agricultural transformation programmes.
The developmental economist said though the Special Agro-Industrial Process Zones was approved by the AfDB Board in 2021, the project is picking up after startup delays attributed to several factors.
“When you approve a programme, you have to have it signed with the Federal Government, especially of that magnitude. You also have to have it signed with the co-financiers. The Bank had to bring in IFAD (International Fund for Agricultural Development) and Islamic Development Bank as co-financiers,” he said.
Kamara said when the Bank met with some state governors, months back, they agreed on certain actions to accelerate SAPZ.
“In all the seven states including the FCT, Cross River, Ogun, Oyo, Kaduna, Kano and Kwara, in each of the states, we are now in conversation with and are publishing the bidding document so that we’ll shorten the process. So, it’s picking up and that is not strange. Projects that are very complex
“That is even why at the African Investment Forum just concluded early this month, we had a pledge from different financiers to the tune of $2.2bn.
“So, the SAPZ is going to happen and it’s going to deliver as much as we have elsewhere.
“The value, give or take, what the Bank is putting in is about one billion dollars. Of course, if you add what others are bringing in, it will be more than that because we are a convener; we bring in others,” he said.
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