First Bank Implements New Operating Structure


By Obinna Chima, 08.24.2010 


First Bank of Nigeria Plc is set to commence its earlier proposed restructuring exercise from next month. THISDAY gathered yesterday that the bank has started dispatching redeployment letters to the affected staff ahead of the new arrangement.The source revealed that with the new organisational plan, the affected staff would be made to focus more on their specific functions and grow along that line.


The CBN had given banks up to 18 months to seek fresh licenses for their banks and subsidiaries to operate as mono-line or specialised banking entities. It had also recognised that some banks or banking group may wish to retain non-core banking business. The apex bank had also proposed in the draft guideline, that such banks must comply with its requirements for the establishment of holding companies (HoldCos), which will include a detailed business case for engaging in any non-core banking operation.THISDAY had reported that First Bank’s new structure would result in the floating of five groups under a holding company (HoldCo).


The five groups, THISDAY learnt  are expected to be; FBN Emerging Businesse; Insurance Group; Offshore Banking and First Bank of Nigeria Ltd, which will stand alone.The source explained: “Some people got their redeployment letter last week. The plan is just a kind of specialisation in banking whereby, instead of the blanket universal banking where a bank does everything, the new structure would be such that each company under the group would focus on its target market. It is not something that is expected to cause any major shakeup in the system.


“The new plan is more concerned about ‘market facing staff.’ That is, those staff who interact more with the market,” said the source.According to him, most workers at the Head office would not be affected by the plan. First Bank’s Marketing and Corporate Communications Officer, Mr. Steve Omanufeme, confirmed the development in a telephone chat with THISDAY last Monday, but declined in commenting further.





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