SOME reputable financial experts have replied a chieftain of the Peoples Democratic Party (PDP), Bode George, who accused UBA, Access Bank and other top bank CEOs of contributing to bank rottenness in Nigeria.
According to Femi Awoyemi, founder of Proshare and Ugodre Obi-Chukwu, CEO of Nairametrics, George’s comments clearly highlighted his lack of understanding about the banking sector and how it works.
Bode George had alleged that Wigwe and other Bank CEO’s such as UBA’s CEO, Tony Elumelu and former CBN governor, Godwin Emefiele all made billions from the corruption in the Nigerian banking industry.
But responding in two separate extensive analysis, the financial analysts said, “an elder statesman, Bode George repeated the worn-out argument that the late Herbert Wigwe could not have legitimately set up a university because he did not have a factory and was not into manufacturing. While there are arguments that can be advanced but this one was not one of such. How manufacturing equates to a capacity to set up a university is unclear.
Access Corp has an asset size of N20.85trn as of H1 2023, making it the largest bank in Nigeria, and the second largest in West Africa. The bank had 35.5bn shares outstanding, with Wigwe being the largest individual shareholder with 4.1% outstanding, translating to 1.6bn shares.
“According to the banking group’s 2022 audited annual financial statements, the bank declared a total dividend of N1 per share (interim N0.30 and final N0.70), meaning that Wigwe would have been entitled to roughly N1.6bn before tax (Wigwe’s shares as of 2023 rose to 9.09% or 3.2bn units).
“Apart from CEOs of oil companies and telcos, it would be difficult to find any managing director in manufacturing with such legitimate executive compensation beyond their nominal annual salaries. In 2022, Access Corporation’s then-CEO, Wigwe, was the highest-compensated CEO of firms listed on the Nigeria Exchange Limited (NGX), while the banking sector was the fastest-growing sector after telecommunications”.
But for now, Wigwe’s earnings are what they are, the funding of such a historic landmark investment would have likely involved a structured funding arrangement from willing investors to fund Wigwe University’s take-off. Indeed, observers have rightly asked: what is wrong with naming a tertiary institution you arranged funding for after your family and building a legacy that will outlive you? The more of such bold, hairy, and audacious moves, the better for Nigeria and Africa; if done within the ambit of the rules of engagement.
George’s accusations also extended to Tony Elumelu and he muddled facts and context, Elumelu was never a ‘floor banker’ because no such banking position or designation existed. More clearly, Elumelu did not get his banking license simultaneously with Fola Adeola and Tayo Aderin1okun of GT Bank.
“The GT Bank co-founders were frontrunners; they pioneered the evolution of customer service-centric banking and set the tone for later institutions like the new UBA and Access Bank. While we recognise that opinions are free, facts must be held sacred on matters of historical timelines and market development.
“Elumelu, is one man who has risen to the top of his career, and has also made it a point of duty of lifting the younger generation with him through his entrepreneurial grants and other empowerment initiatives.
Elumelu, is also the founder of Heirs Holdings, which has extensive investments in financial services, hospitality, power, energy, technology and healthcare sectors.
Over the years, the businessman has made it clear that he does not only invest in humans, but is passionate about encouraging equality in the corporate sector. Through the Tony Elumelu Foundation, he has made the dreams of many young entrepreneurs to come to life.
Despite this sparkling career of financial success and human service, it is confusing that these bankers are the butt of misconceptions by such an elder.
“These misunderstandings shows lack of understanding and having limited knowledge of the operations of financial institutions and their strict governance codes that limit the capacity of their executives to run rogue with depositors’ funds.
The experts further stated that, to ascribe economic success to being a manufacturing company is clearly disingenuous and it shows disrespect to the hard work done in the financial service space and technology as a whole.
“Do we need manufacturing in this country? Yes! But they will not do as well as banks if they do not manufacture what the world values the most. Today, the world values technology services, renewables and financial services.
“Banks are by design one of the largest businesses in the world for obvious reasons. In fact top 20 companies in the world by profits include 8 banks; CCB, JP Morgan, Bank of America, Bank of China, Wells Fargo, Citi Group and China Development Bank.
“Our elders have brought us up to know that they would not be in the market square and leave a child’s head dangling askew at his/her mother’s back. Elders are within their rights to point out errors and recommend remedies, but they should not be cheerleaders, raising dust when they could more productively provide the much-needed support to understand, appreciate and encourage the finer points around our developmental gaps”.