Olabisi Onasanya was a former Group Managing Director and Chief Executive Officer of First Bank of Nigeria Limited. He is currently the Chairman/CEO of a real estate business, Address Homes Limited. He tells FAITH AJAYI about his career in the banking sector and his transition to real estate
take us through your career trajectory.
I had wanted to study Law but as providence would have it, I became a chartered accountant in 1983 at the age of 22, which was the same year I graduated.
I started my working career in an accounting firm— Messrs Arthur Young Osindero & Co Chartered Accountants— as an audit trainee in 1981. I later joined Wema Bank in 1985 as a senior accountant, before moving to First Bank of Nigeria Plc in 1994 as a senior manager. That was where I cut my teeth occupying several management positions, which included being the Financial Controller of the bank; a position I held for over six years, leading several transformation initiatives.
During that period, I also had the privilege of being appointed as the Coordinator of Century 2, Enterprise Transformation Project – an initiative that started the transformation of First Bank from being an old-generation bank to a modern, competitive, and nimble financial institution.
From this role, I was appointed the pioneer MD/CEO of First Pension Custodian Limited, a greenfield start-up and fully owned subsidiary of FBN, in 2005. I must say I am very proud of my achievements in this role, as the entity not only delivered on its operational efficiencies but recouped all pre-operating expenses after one year of operations, and returned dividends in its second year of operations. It was from this role I was appointed the Executive Director, Banking Operations and Services of FBN in January 2009. Six months later, in June 2009, I was appointed the Group Managing Director/CEO, a position I held for six years, being two terms of three years each, till I retired in December 2015, after successfully taking the bank to enviable heights.
Immediately after I retired from First Bank, I founded my real estate business— The Address Homes Limited— which was a burning passion I had nurtured on the side, and today, we have grown to become one of the leading real estate development firms, building quality homes to the delight of our teeming customers.
What were the highlights of the specific positions you held during your banking career?
I spent about three decades of my career in the banking sector, and that was the period that shot me into the limelight. The highlights for me during that period include coordinating and driving the implementation of the bank’s Enterprise Transformation project (Century 2, New Frontier), as well as partnering with Messrs Accenture. Several key strategic initiatives that prepared the bank for another century were implemented too.
Other high points include setting up a performance management function in the bank from scratch, successfully establishing a start-up company— First Pension Custodian Limited, which became the clear leader (in terms of market share) in the Nigerian pension funds custody market, achieving financial breakeven point in the first year of operations with almost N400bn pension assets held in custody by the second year
I oversaw the development of new technology platforms to modernise and drive the bank’s growth, which included launching its first-ever 24/7 interactive contact centre.
The highlights during my tenure as the GMD/CEO, include driving and leading the expansion of the bank into several new locations in Africa and beyond, including the Democratic Republic of Congo, Ghana, Gambia, Guinea, Sierra Leone, China, and the United Arab Emirates. We also pioneered the holding company structure in banking/financial services through the establishment of FBN Holdings Plc as an overall holding company for the bank and non-bank units, and subsequently passed on stewardship for FBN Holdings and its non-bank subsidiaries in 2013.
I was involved in overseeing the launch of our mobile payments offering— Firstmonie— which led to the growth of our network of agents delivering mobile payments services on our behalf to customers, riding on the back of the critical structural support our physical presence had provided.
The establishment of the insurance business of the group through the application and grant of license for FBN Life Assurance Limited was another achievement.
Before your appointment as the GMD of FBN, you were the MD/CEO of First Pension Custodian. What can you recall of your time in that office?
First, I was saddled with the responsibility of setting up the pension custodian business. As the company’s pioneer MD/CEO, my role included ‘mid-wifing’ the application from Approval in Principle to full license stage, recruitment of the pioneer set of staff to set up the back, middle and front office, including operating software evaluation and acquisition.
It was also my duty to put in place policies and processes that would drive business development and customer acquisition that led the company to become an industry pacesetter, in terms of local best practice in custody operations and automated straight-through processes. The company, in its second year, held pension assets to the tune of N400bn, and that was the biggest in the industry at the time. We were able to achieve that after the first year of the company’s operation.
What were the biggest challenges you faced in that office?
The set-up of a new business in an entirely new industry comes with loads of challenges, particularly the fear of failure. Indeed, it was the fear of failure that propelled me and brought the best out of me during my tenure.
Be that as it may, the challenges I faced included coming up with a good business plan to achieve the goals and objectives of the parent company that deployed capital for the setup; implementing appropriate technology to drive the business model, developing processes and policies under a proper governance structure, as well as developing products and services to grow the market share of the pension market business.
How were you able to deal with those challenges?
God was on my side, making all things work out as planned. In addition, the fear of failure and the determination to avert it were paramount in driving me. I had an incredible will to make the business thrive, and I threw everything I had into it, including the discipline to apply cost containment measures.
I also built an excellent team of young men and women (mostly fresh graduates, without biases), who were determined to succeed, and therefore worked hard under pressure. I was able to inculcate the passion I had for success into them.
Finally, I had a supportive board of directors, and an experienced Chairman, Joseph Sanusi, who was like a father to me. He paved the way for most of my initiatives to come to fruition.
Tell us more about your time at the helm of affairs at FBN.
As the MD/CEO of an organisation with a rich heritage like First Bank, one’s role is to ensure that the institution achieves stability, growth, and sustainability, while also paying attention to good corporate governance and shareholder expectations. More broadly, I had the responsibility to lead the growth of the bank and return decent profits, while driving organisational efficiencies in platforms, modernisation, financial performance, business leadership, organisational restructuring, international expansion and joint ventures, operational and technological improvements, and credit portfolio performance, among others.
Also, I was a speaker, panelist and participant at numerous high-profile global economic and financial services programmes, including the World Economic Forum (Davos in Switzerland, and Africa), WorldBank/IMF annual meetings, and Commonwealth Business Forum.
What were the toughest challenges you encountered in that office?
As a result of the bank’s size, much of the work we did was on big-ticket projects. These invariably required three conditions for success.
The first was the simple matter of getting the visioning phase right. Here, the main threat, or opportunity, if you will, was how to translate the desired end-state through the eyes of as many stakeholders as possible without creating new layers of bureaucracy. Obtaining would-be user buy-in was the main elephant in the room in this regard.
Also, there were challenges associated with implementing the agreed activities. Driving change initiatives that means people had to leave their comfort zones is always a difficult challenge. But, I quickly learnt to work around the apprehensions about change that lay behind much of the resistance.
The third challenge was how to extract value from each change initiative for the pre-implementation promise. The most difficult aspect of this was when an initiative designed to ease customer access and use of bank processes had to be sold to the market. Often, it was hard to understand the resistance until one remembered that the average customer was regularly made all manner of promises that were not fulfilled, and had become cynical.
At that point, I realised that I had to get my hands dirty to understand what had to be done. It was after that I learnt to focus on a single-minded implementation of these projects, and to institutionalise feedback arrangements that allowed us to tweak processes for added value.
How were you able to overcome them?
Several things were done to overcome the challenges, including constantly reviewing the operating environment, taking calculated risks to mitigate downsides, and having faith in God to see us through. I must say that I could not have overcome all those challenges by myself if I did not have smart people around me. My strength, therefore, was in having very smart people around me and empowering them.
What informed your decision to go into real estate?
My passion for real estate has always been there, which underscores the way I have changed homes with my family. Indeed, building homes has always been a hobby for me. I enjoy envisioning a home and putting together every brick to make it come out the way it was envisioned. So, for me, it was not a difficult decision to pick up that passion as a full-time business and run with it.
It was basically tantamount to doing something one had a passion for, and which coincidentally also gives one commensurate financial rewards. Nothing beats that combination.
Today, the company boasts of several plum projects, now running into hundreds of homes, which have been delivered and fully occupied, with an increasing base of delighted customers.
You went from being an accomplished banker to becoming one of the biggest players in the real estate industry. How did that progression happen?
It must be fate of some sort. But, a lot of hard work was involved. Throughout my career, my mantra had been to always do my best in whatever responsibility is assigned to me.
I am not an absentee (real estate) developer. Indeed, I visit every site and get my hands dirty. Whatever I put my mind to doing, I try to make sure it comes out very well, and that has earned me the visibility I have today.
Earlier in the year, you were conferred with a honourary doctorate in Finance at the seventh convocation ceremony of the Federal University, Oye-Ekiti, Ekiti State. How did that make you feel?
I felt humbled, and I have expressed my gratitude to the vice chancellor, the governing council, the Senate, staff and students of the institution for finding me deserving of the exalted honour. It was unique in the sense that the conferment came with no conditions or demands. It was unsolicited, just as it was not anticipated. It was even ‘sweeter’ because it came seven years after I had retired from banking. It was a great event, where I was among the well respected personalities, such as Wole Olanipekun (SAN) and Segun Odegbami, who were co-awardees at the convocation.
It was not my first honourary doctorate; but it is the most cherished, for the reasons I stated earlier.
The modern banking system is largely technology-driven, with mobile and Internet banking. Do you think the Nigerian banking sector has been able to meet global standards, especially as regards functionality?
I would argue that local practices are at the cutting edge of global industry practices. There are jurisdictions in the Organisation for Economic Cooperation and Development where the kind of real-time settlement in Nigeria is still a novelty. Our payment systems in Nigeria are one of the most advanced in the world today, and that has been widely acknowledged.
That said, it helps to understand that banking has got to be relevant to local needs. This is one industry where local constraints trump global best practices all the time.
Pension schemes are mostly adopted in the formal sector. However, it is said that the inclusion of the informal sector in pension plans will have a positive impact on the country’s economy. What’s your take on that?
I have a positive take on that, as the pension scheme intends to provide a cushion for post-work life. Whether in the formal or informal sector, workers need something to fall back on in old age. So, putting in place a framework that would bring in workers in the informal sector is a good thing that would have a positive effect on the economy.
However, there needs to be a clear public communication campaign that would educate people in the informal sector on the benefits of putting something aside, no matter how small, as a deliberate action to take care of their inactive years. On this note though, I need to say, that a very robust and effective pension system is critical to the elimination or total eradication of corruption in the system. One major factor that drives corruption is the fear of the unknown, post-retirement, particularly in terms of meeting critical financial needs.
What are the things you are most proud of in Nigeria?
One of the things I am proud of, which has been publicly adjudged in several fora is our youthful population. It has given the country the right leverage in attracting investors who see Nigeria as a destination of untapped potentials. For example, it is the youthful population that is driving mobile telephony penetration in the country in leaps and bounds? This population is very resilient and knowledgeable— our greatest asset as a nation. Just like it can also be a challenge, if not well harnessed.
How have you been able to stay relevant since your retirement from the banking sector?
I think it is the relationships I have built over the years that have helped me to be able to remain active and relevant to society. Just like in a nuptial relationship whose quality defines the success of the home, the relationships one has cultivated, the people who have contributed and shaped one into who one is, all have an impact on how society sees one. My real estate business is also keeping me in touch with relevant members of society.
It is common to hear people, especially the youth, say that the country has done nothing for them. What is your advice to young people in that regard?
The first thing is for them to understand and come to terms that every individual has the principal responsibility over who they turn out to be, by virtue of the choices they make.
It is important to be focused and work hard. They should look for the right mentors to guide and set them on the right path. I like a classic quote, which says, “Most people who fail in life are people who quit the stage when they did not know how close they were to success”. It means that sometimes the extra effort that is required is what people miss, which is why they fail. I, therefore, believe that if one has to do anything, it should be done with one’s best efforts and resources.
What advice do you have for youths who are looking to venture into business?
It is not an easy venture, but if one has the right mindset and belief, nothing is impossible to achieve. They must have an idea and passion that resonate from inside them, then look for the means to bring them to life, working with guidance from their mentors and people that can set them on the right trajectory to achieve their goals.
Who are your biggest cheerleaders?
That would be my wife, children and childhood friends. They are also my greatest critics.
How are you able to balance your work and family life in a way that none suffers?
I give God the glory for that. I will also praise my wife for her understanding. There are many sacrifices on the part of the family, and the only time we have to discuss is when I am back from the office, or in the swimming pool in the mornings, as part of our daily routine.
During my active working career, I used to travel a lot. And, because I did not have much time for them, we (my wife and I) always made those trips together, although at my expense. I hardly travelled without my wife. Today, things are much different. I am more present physically, emotionally and spiritually.
How did you meet your wife?
I actually met her in secondary school in 1978, and we were just friends. I attended Eko Boys High School, Lagos, but at that time, some private schools were shut down and the students were distributed to government schools.
We parted ways, and met again in 1981. On one occasion, I invited her out for lunch at a restaurant, and that was where I proposed to her. We are more of friends than husband and wife, and that has gone a long way in strengthening our relationship. We got married in 1985, and each day of those 38 years has been like a new day in the relationship.
If I did not marry her at the time I did, I am not too sure I would have found true love, because I became very successful early in life.
As of when I was a 22-year-old chartered accountant, I had everything a successful young man should have. I had a very good job as the head of accounts of a bank, a good car and nice accommodation. If one was not in a strong relationship at that time, it would have been extremely difficult to find someone who loved one truly.
What were the qualities that attracted you to her?
We started as friends, and over time, saw qualities we liked in each other, and that has kept us bonded.
Are any of your children following in your career path?
As an accountant and banker; not entirely so; but my two sons are bankers, though one of them has left the job to run an automobile business, and he is doing very well in it. I do not believe in defining the future for my children. I have therefore left each one to pursue their passion.
What is your favourite meal?
Anything goes. I am not a foodie.
How do you like to dress?
I like to dress simply. But in the office, I am a power dresser. I am fully in charge of my corporate wardrobe, while my wife is in charge of anything traditional.
How do you unwind?
I like boating a lot. Once in a while when the time permits, my wife and I cruise on a boat to a quiet location and spend the day there. On Sundays after church, we tend to go out as a family. No matter how successful one is, one cannot afford to damage the home front. A successful man is not one who just has a great career. One is a failure if one’s home is unsettled.
