By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-It was not a surprise to some of us from this divide when on February 19 news filtered into our digital newsroom that Lamido Sanusi, governor of Nigeria’s central bank has been suspended and Godwin Emefiele, group managing director/chief executive officer (GMD/CEO) of Nigeria’s third biggest lender by total assets, Zenith Bank Plc may be in a pole position to be announced as the likely replacement for Sanusi and the choice of president Goodluck Jonathan for the plum job.
On February 20th, 2014 what filtered into our newsroom as an unconfirmed report became validated as Reuben Abati, special adviser to the president, (media & publicity) issued a statement announcing the suspension of Sanusi as the governor of the CBN and the appointment of Sarah Alade, the most seniour deputy governor of the CBN, who will serve as acting governor until the investigations into breaches of enabling laws, due process and mandate of the CBN by Sanusi are concluded.
Before this time, names that were tipped for the post Sanusi era include leading frontrunners like Bisi Onasanya (banker and group managing director First Bank of Nigeria), Mustapha Chike-Obi (investment banker and managing director, Asset Management Corporation of Nigeria), Kingsley Moghalu (deputy governor of the central bank of Nigeria in charge of the financial system stability), Aigboje-Aig Imoukhuede (former group managing director of Access Bank Plc) Olusegun Aganga (Nigeria’s current minister of industry, trade and investment), Sarah Alade (then deputy governor, economic policy of the CBN; but now acting governor) and Atedo Peterside (pioneer MD/CEO of IBTC Chartered Bank) all emerged as top contenders in the Nigeria’s central bank’s governorship race.
It was even mentioned that Bauchi State governor, Mallam Isa Yuguda, has surprisingly entered the race for the CBN governor’s position and former minister of state for finance, Dr. Yerima Ngama.
Emefiele deserves to be Nigeria’s next central bank governor, in our estimation; he is a silent achiever and a thorough breed banking professional with over twenty six (26) years of banking experience.
In terms of academic qualification, Emefiele holds a B.Sc Degree in 1984 and an MBA Degree in finance in 1986, both from the University of Nigeria, Nsukka. He is also an alumnus of executive education at Stanford University, Harvard University (2004) and Wharton Graduate Schools of Business (2005).
Before commencing his banking career, he has lectured finance and insurance at the University of Nigeria Nsukka, and University of Port Harcourt, respectively. Emefiele serves as director of ACCION Microfinance Bank Limited.
Prior to emerging the CEO of one of Nigeria’s biggest lenders, Emefiele served as deputy managing director of Zenith Bank Plc. since 2001. He served as executive director in charge of corporate banking, treasury, financial control and strategic planning of Zenith Bank and had been in the management team since inception.
Amongst his recent achievements is the chairing of the sub-committee on the biometric project, this will thrive excellently under his tenure as Nigeria’s central bank governor.
Sanusi at a public outing in late February commended Emefiele for his competence and hardwork as a member of the bankers committee. In Sanusi’s own words ‘’ Emefiele has been a very competent and hardworking member of the bankers’ committee who chaired the sub-committee on the biometric project.’’
‘’Zenith Bank has just produced the next governor of the central bank, also a fine gentleman; I was hoping I’d meet Godwin here – I have also congratulated him. I’d like to, through his representatives, again send my deepest and my most profound congratulations to Zenith Bank for producing the Governor. I am sure he will do extremely well,’’ he said.
Sanusi said the biometric project which Emefiele chaired its sub-committee is the first of its type in the world – not the technology; but the use to which it is put and there is nowhere else in the world apart from Nigeria where bank customers would go and register with one bank and their biometric details are available to every other financial institution in the country. This was a sub-committee which Emefiele chaired that has performed creditably well as to this regard.
As part of Emefiele’s silent achievements, about a year he assumed the position as the GMD, Zenith Bank was amongst the list of 64 firms quoted on the floor of the Nigerian stock exchange (NSE) to have recorded consistent profit between 2010 and 2011 financial year ends (FYEs). The bank recorded a profit after tax of N44.189 billion in year 2011 end, N37.414 billion in year 2010.
Early 2013, under Emefiele watch, Zenith Bank was amongst the 13 Bank Stocks that dominated the NSE’s market making programme which commenced September 18, 2012. Zenith was also amongst the six (6) banking stocks that were traded on inception; others are Sterling Bank Plc, Fidelity Bank Plc, Guaranty Trust Bank Plc (GTBank), Diamond Bank Plc and First City Monument Bank Plc (FCMB).
The bank also has gotten a robust information and communication technology platform (ICT) and wide online presence; supporting small and medium scale enterprises (SME’s). Little wonder under Emefiele’s watch KPMG one of the largest professional services companies in the world and one of the big four auditors in a declaration in its 2013 banking industry customer satisfaction survey (BICSS) affirmed that Zenith Bank is best-in-class service delivery and ranked the top most in both the retail and corporate banking categories on the basis of a customer satisfaction index (CSI) which took into account key factors such as convenience, product/service offering, transaction methods and systems, pricing and customer care.
Other achievements under Emefiele’s watch include The Banker Magazine, a publication of the Financial Times of London in a 2013 survey, rates Zenith as the biggest bank in Nigeria by tier-1 capital.
Also, Forbes & CNBC Africa ranks Zenith bank as the third (3rd) biggest company in the West African sub-region.
Capital Finance International (CFI) had one time adjudged the bank the best commercial bank in Africa. While, the world finance voted the bank as the best Nigerian bank in corporate governance.
The bank today has over 500 branches and business offices spread across all state capitals, the federal capital territory (FCT), major towns and metropolitan centres in the country. Zenith Bank’s impressive growth pattern and performance over the years have earned it excellent ratings, recognitions and endorsement from local and international agencies and institutions.
In 2012, Zenith Bank was recognised as one of the 30 outstanding global brands making sustainable impact on their operating environment. This recognition was prelude to the United Nations development programme’s (UNDP) conference on sustainable development (Rio+20) which held in Rio de Janeiro, Brazil in June 2012.
A review of the bank’s latest performance under Emefiele shows that in its FY-2013 released on March 11, 2014, it recorded a gross earnings growth of 14.45% y/y to N351.47billion from N307.08 billion driven by a solid expansion of its balance sheet.
Also, under Emefiele’s watch, management of the bank grew the loan book by 26.47% to N1.25trillion (11% growth achieved in FY-12), supported by an 18.01% increase in deposits to N2.28trillion; which is one of the best in the industry.
According to analysts, on the back of the above mentioned balance sheet growth, interest income jumped 17.50% y/y to N260.06billion from N221.31 billion while interest expenses grew y/y by 9.66% to N70.80billion from N64.56 billion. Interest expense growth was predominately driven by 154% y/y spike (to N3.83billion) in payments on savings account as the new minimum savings rate (30% of MPR) kicked-in, and a 392% surge (to N2.48billion) in interest payable on inter-bank takings.
Similarly net interest income increased by 20.74% y/y to N189.26billion from N156.75 billion, and this was reflected in net interest margin (NIM) which increased from 8.19% in FY-2012 to 8.70% in FY-2013 (the highest figure in five years).
