Tokunbo Abiru, who is the Senator representing the Lagos East Senatorial District, is also a former Chief Executive Officer of Polaris Bank. He tells BABATUNDE TUGBOBO about his business and political careers, and other issues
Over 2500 vulnerable people in your senatorial district were said to have benefitted from your COVID-19 relief support scheme. What informed your decision to start the scheme?
I got (into office) at a time when the country was just coming out of a recession. Suddenly, the COVID-19 pandemic started, and there was yet another global recession. You can imagine the impact it would have on the lives of people. However, one thing that was clear was that there had to be a way to positively impact the lives of vulnerable members of society. Don’t forget that even at the macro level, the authorities were struggling to impact on businesses with one form of economic stimulus or the other. But, for the people at the bottom of the food chain, there was no way that could have trickled down to them. In going about it (support scheme), we felt it was important to identify the vulnerable members of society. We then categorised them into five parts—persons living with disabilities, widows, aged members of society, unemployed youths and women. At the end of the day, we were able to support about 2,500 people. We gave them cash on a monthly basis for a period of one year; from January to December 2021. But, around November, there was a clamour from people that we should not stop it, because a lot of people had got accustomed to it. It was actually meeting the needs of society. As we were approaching 2022, another variant of COVID-19 was also surfacing, and that challenged us to continue the scheme.
Aside from the support scheme, what are your other achievements in the past 17 months?
When I want to talk about my achievements, I group them under three board pillars, which are my legislative duties, empowerment, and endowment.
In my capacity as a legislator, I have been able to make impact in the area of sponsoring bills and motions that will impact society. One of those is the copyright bill which we (Senate) are repealing and reenacting. It is meant to support the development of creative minds and young entrepreneurs in order to protect them and reward them appropriately for their creativity. I am happy to let you know that it received very strong support. It has gone past the first and second readings. A public hearing has also been held, and it (bill) has been passed by the Senate. I hope that before the end of this current assembly, the President would have assented to it.
Another one is the franchise bill which we just started. We are waiting for the public hearing on that. The bill is meant to protect small businesses.
In terms of motions, I have moved a motion that is aimed at developing the Ikorodu/Sagamu road through which a lot of goods and services get into Lagos. That motion has been moved and we have the cooperation of both the Senate and the Federal Ministry of Works, which has put it under their Sukuk arrangement for assured financing. Another major road in our corridor is the Ikorodu/Itokin road.
In terms of empowerment, we have been able to make meaningful impact. In the local governments (in my constituency), we have put things in place that can support the basic needs of the people, especially in the areas of education, healthcare and socio-economic development. I set up a foundation called the Tokunbo Abiru Constituency Team Foundation. Under that foundation, there are three major projects that I am pursuing, and the focus is on the youth and entrepreneurs. The first one is the bursary support programme, through which we support students in tertiary institutions. We look forward to supporting about 600 students. In doing this, we set up what I call an advisory board, and they will be the ones to select the 600 people that will benefit from the programme. That way, it will be difficult for anybody to say either I or my team members are the ones picking the beneficiaries. The advisory board is made up of professionals who understand education. I gave them a mandate that indigent students who are in their second year and who have a cumulative grade point average within second class lower division. Having given them those criteria, they must ensure that there is a fair representation of all the five local governments and 11 LCDA. Also, in terms of business aid, we promote entrepreneurship. Last year, we partnered with the FATE Foundation. We also sponsored a capacity building programme. In addition to that, we will be instituting a constituency revolving facility or loan, which will start anytime from now. We have concluded all the back channel details and we are ready to go. We know that most businesses face the challenge of finance, because they find it difficult to access credit. Even when they do, the rates can be killing. We promised that when we launch the N100m fund, we will make sure the interest rate is capped at six per cent. However, the businesses that will benefit from it will have to be properly assessed and reviewed. Still under endowment, we have a technology and innovation centre. We live in an age of digital revolution and we know a lot of our youths are itching to be part of this revolution. Because of my background, I have decided to set up an innovation lab, which is called the Co-creation Hub.
How were you able to emerge as the All Progressives Congress’ flag bearer in the Lagos East Senatorial District’s bye-election, considering that there were some political heavyweights in the race and you were coming from the corporate world?
That is why we have to give credit to our leader, Bola Tinubu, for his penchant for picking the best talents. That is part of what is making Lagos a model state. When I was coming (into politics), I retired from my banking profession. Of course, one does not wish one’s fellow human being death but unfortunately, it coincided with when the senator formerly occupying that position passed away from COVID-19 complications. When this opening came, there were about 12 aspirants, who were eminently qualified. At that time, the opinion was that I was best suited for the office. That is not to say the other aspirants were not qualified. They were equally qualified but the background I was coming from gave me an edge..
You are called the ‘doing good Senator’. How did that name come about?
I didn’t actually coin the name. I think the people who coined it considered my philosophy about service, which is, ‘the greater good for a larger number’. I always want whatever good I do to be for the whole society, not for a selected few. As a Senator, my mandate is to serve everybody, irrespective of what political party they belong to. It is also not just about doing good; there must be transparency, fairness, equity and accountability.
Many lawmakers have been criticised for giving out mundane things such as wheel barrows and grinding machines as constituency projects. What is your take on that?
The kind of leadership we need is one that understands development, and seeks to release people from poverty. I spoke about giving out loans with an interest cap of six per cent that will be affordable for them. It is a dividend that must be seen from a growth point of view. There is also a process by which beneficiaries will be assessed. The idea is to teach financial discipline. If anybody imbibes financial discipline, they will experience business growth. It is not for me to comment on what other people do, but wheelbarrows or grinding machines could be the resource that someone needs to start a business, so I will not write it off completely. All that needs to be done is for such things to be given to the right people. As we are sitting here, some people are looking for money to buy a grinding machine. If one can identify such people and give them those machines, it will go a long way in alleviating their suffering.
What is your reaction to calls in some quarters that the pay of Nigerian legislators is too much and should be reduced?
I have heard people say that the emolument of legislators is a huge chunk of the country’s budget. However, the total package of the legislature is under three per cent of the nation’s budget. I have worked out those numbers and I have my facts and figures.
Also, the pay includes the monthly salaries of legislators and support for their constituency offices. The National Assembly is in Abuja and lawmakers have to shuttle between there and their various constituency offices across the country. For somebody like me, my constituency office in Ikorodu is properly manned. Under the federal arrangement, five local government areas are recognised as what make up my constituency but in reality, there are 11 local council development areas. In all the local governments in my constituency, I have liaison offices which are manned 24/7. All the people who work there get paid. Taking all those into consideration, I think it is a reasonable pay package to meet the expenses of legislators.
What do you consider to be your legacy as the Lagos State Commissioner for Finance?
I will reflect on three major goals that I created. During my tenure, we were able to expand and bring more people under the tax payment bracket. I cannot remember the exact figures but that helped in enhancing the internally generated revenue of Lagos.
Secondly, we sustained the operating expenditure and capital ratio of balancing the budget. One of the major things we did during that time was to raise the largest bond in the history of sub-nationals in Nigeria. That was the first time we did a bond issuance programme of N80bn. Because of our financial discipline, we kept to the expectation of credit agencies in meeting basic requirements.
Thirdly, during my time, we were also able to activate a World Bank programme called the Development Policy Operation Support Programme.
You were appointed to lead Skye Bank at a very vulnerable time. How were you able to turn the fortunes of the company around?
That was one of the challenging periods of my career because I did not realise the depth of the problem until I got into office. But, it was not an assignment I did alone. The Central Bank of Nigeria was ready to support us, which was borne out of the fact that we had a systemic crisis in our hands. Skye Bank, at that time, was a Systemically Important Bank, meaning that if any problem it had at that time was not nipped in the bud, it could pull the entire financial system down, and rightly so because the balancing size as of that time was in excess of N1trn. It had more than five million customers. When one is in that kind of situation, one needs the support of the regulator, as well as that of one’s colleagues on the company’s board. Thankfully, I had a very understanding chairman who had functioned as one of the pioneer staff of the Nigeria Deposit Insurance Corporation, so he understood the undertakers’ problem, because that was what we were to do. I also had some trusted hands, including the current Managing Director. In executing the assignment, I also came in with my experience. At that time, the exposure of the bank to international creditors was in excess of half a billion dollars. We needed to reach out to them and let them know there was no need to panic. We let them know that there was a challenge but that if they panicked and pulled the plug, they would scatter everything. But, if they showed understanding, within a certain period, we will get ourselves out the situation. We then went into different kinds of repayment arrangement; some for 12 months and some for 24 months. It also challenged me to move around the world, and let them know that the stability we were building had the backing of the regulator. At the end of the day, within a period of 15 months, we were able to calm all the frayed nerves. By the time we were getting to the end of the second year, it was time enough for us to take stock and realise that we were done with the assignment. Even the local partners here— banking members of the public— showed a lot of understanding and support. Within a period of 18 months, we were able to stabilise the system.
What were your achievements as the CEO of Polaris Bank?
The major achievement was that we were able to avoid a systemic crisis, because if we didn’t manage the Skye Bank issue properly, the entire system would have felt like a ruin. Remember, Skye bank was a Systemically Important Bank, and we had large dependencies. We had over five million depositors, and we had corresponding banks with exposures. There were also local banks with placement that were expecting their repayment. We had loan customers too that needed to make recovery. So, the first achievement was the fact that we were able to stabilise the system. Having done that, we moved to the next phase which was making sure the new bank was also making profit. By the first year of operation, we were making profit. All the ratios which were hitherto below the prudential ratios below were now becoming compliant with the prudential numbers, which is what ensures the stability of a bank. Again, it was a system that had a workforce of over 10,000 people. At the time I was leaving, we still had 8000 members of staff, which meant we were able to save the jobs of over 8000 people.
As the GMD of Polaris Bank, what were the toughest decisions you had to take?
I think I made the toughest decisions in Skye Bank. As a Chief Executive Officer, one will always have to make tough decisions. The first tough decision was that we needed to change the information technology platform. When we got into Polaris, the first major challenge was that we invited our equipment manufacturer to come and assess our technology platform. After about two weeks of review, what they came out with was that we needed to overhaul it completely. For a new entity, that was a major issue. We had to approach the owners and tell them that we needed to overhaul the system. We gave them the reasons and they agreed. The overhauling then started. I thought that was the only challenge. But, when we were done with the first phase called the frontend, I realised that for an assemblage of over 8000 staff, even the skill sets of those people were not relevant in the new technology we were embracing. Our consultant then advised that we needed to get a Chief Digital Officer. We tried an executive selection and got one, only for the person to come and tell me that for him to do the job, he needed a complement of staff. I said out of the 8000 staff we had, he would find suitable hands. But, he explained that he needed people with robotic experience, artificial intelligence and coding. Not only that, the mobility of those tech guys is high, so we needed a different salary scale doe them. We practically had to set up a new career path and salary scale for them, because that was the only way to survive. Those were tough times, but I am happy that we were able to put the bank on a stable platform.
As the GMD/CEO of a bank, you were doing very well in the corporate sector. Why did you decide to leave that behind and contest the senatorial election?
There are different perspectives to this question. With all sense of modesty, I had done my bit in the corporate world. Spending 30 years in the corporate world is not a joke. I was convinced that it was time to retire. Also, when I was going into Skye Bank, the mandate was clear that it was to stabilise the bank and put it on the path of profitability. I felt I had achieved those two objectives. Having done that, I asked myself what the next challenge was. To be honest, I did not think of going into politics immediately. My next call was to retire. Even if I did not come into politics, I would have retired or taken a break for about two years; perhaps, look for a school to attend or just unwind and think about life. I am also one of those people that have always believed that a lot of us, particularly in the private sector, have got to find a way to be part of the leadership of the country. We are usually very quick to condemn, but oftentimes, when one is meant to put one’s skin in it, we shy away.
What were your proudest moments as an Executive Director at First Bank Nigeria Plc?
For any career person in banking, the most important thing is getting to the peak of one’s career. The peak of the career for any staff in the bank is to join the leadership of the bank, which is at the executive level, and the top of that is to become the CEO. Unsolicited, I was invited to become a commissioner in Lagos State when I was at the peak of my management career. I was a Deputy General Manager when I was invited to join Governor Babatunde Fashola’s cabinet. As of that time, I had functioned for about two year as a DGM. It was meant to be a four-year tenure. But, after the second year, I had to resign, when I had the opportunity to join the leadership of First Bank. At that time, First Bank was the largest and oldest bank in the country. Even getting that offer and being part of it was one of the highest moments of my career.
As someone who had risen to the pinnacle of his career in the corporate sector, how easy was it for you to blend into public service?
That was very simple for me. My life has always been about service, whether public or private. If one has that kind of orientation, the dynamics might be different, but the objective is the same. The surrounding factors might be different, but the ultimate objectives are service and fairness. That is not to say that everything will go well with everybody but if one’s focus is clear, people will see and understand the kind of person one is.
When did you have a breakthrough in your professional career?
The breakthrough was at a very early stage. Very early in my life, it was clear to me what I wanted. I grew up in a neighbourhood where there were a lot of successful professionals. In the neighbourhood I grew up in, the husband of one of my favourite aunties was a successful investment banker who worked with Chase Merchant Bank. In my A-level days, my childhood friend, Tunde Adeola’s brother, Fola, also worked with Chase Merchant Bank. By the time I was coming out of university, it was clear to me what kind of success I wanted. I was following the paths that successful people had taken. I went to Akintola Williams and trained as an accountant. From there, I went to Guaranty Trust Bank. I am one of the pioneer staff of GT Bank. As of that time, I was already in the midst of successful people, such as Fola Adeola and the late Tayo Aderinokun. I was just 24 years old, while they were like 36 years old. They were the ones calling the shot then.
What do you regard as the lowest moment in your career?
My lowest moment was in Skye Bank. As much as we achieved a lot, the first nine months were very rough for me, I must admit, because it was a correctional role, in terms of having to set the records straight. Some of the challenges of Skye Bank then were the issues around corporate governance because there were a lot of insider-related issues. One had to run after debtors and because of my training, when one is chasing debtors, one has to show understanding. One had to do a lot of restructuring. As of that time, I had spent about 26 years in the banking profession. In those 26 years, I never stepped into a police station. But within the first six months in Skye Bank, I was frequenting the offices of the Economic and Financial Crimes Commission, Police headquarters, and Department of State Services. At some point, I almost felt like quitting because as one was trying to correct certain things, the debtors that one was chasing were also hounding one differently.
As a technocrat, what were some of the things you had to adjust to when you first took public office?
I had been exposed to a lot of background training in ethics, so in my mind, the lines had been permanently drawn. Politics is about showing understanding. One cannot be too rigid. But in the life of a man, there is a line one cannot cross, no matter the understanding.
What is your political philosophy?
Doing good for a larger number. As far as I’m concerned, any policy that will not address that definition is not worth pursuing.
Politics is believed to be a dirty game, especially in this part of the world. How have you been able to handle it, considering your corporate background?
The best way to handle it is to be organised. Once one is organised, one can anticipate the areas one does not want to vie into. If one is organised, people will gradually know one for what one stands for.
What are the personal qualities that helped you to achieve success in all facets of your career?
That would be my family background and values. I owe that to my late dad.
Who are your role models, mentors and people you admire?
The former chairman of Nestle, Chief Olusegun Osunkeye, is one person I respect a lot. Others include my seniors in the banking profession such as Fola Adeola, Mohammed Hayatu-Deen and Olawale Edun. Also, the National Leader and presidential.l candidate of the APC, Asiwaju Bola Tinubu, is someone I respect a lot.
Surprisingly, my wife too, is a key pillar in my life. I don’t hide anything from her. We discuss, and she guides and supports me with prayers.
What are some of the most important lessons you have learnt over the years?
The major lesson is that there is no shortcut to success. Also, one has to be focused in whatever one does.
What are your fondest childhood memories?
My fondest childhood memories are what I will describe as ‘tough love’ by parents. It is like going through the eyes of the needle to survive.
What were your childhood ambitions?
My dad was a lawyer, so the general tendency was for everybody (in the family) to become a lawyer. My brother went into law but I decided I wasn’t going to become a lawyer, though I knew I would become a professional because my dad was particular about his children being professionals. That was what led me into accounting.
How do you unwind?
I like to exercise by swimming. I also love spending time with my kids. As a family, we travel at least once a year to bond. I used to socialise a lot but with my present responsibility, my time is limited.
How do you like to dress?
The things that inform my dress sense are simplicity and moderation. Whether I am going for plenary (in the Senate), or a wedding, I must be dressed in either complete agbada or a suit.
