First Bank has received the prestigious titles of Best SME Bank in Africa and Best SME Bank in Nigeria at the Asian Banker Global Excellence Retail Awards 2024. This recognition highlights the bank’s exceptional innovation, leadership, management, and performance in the financial sector.
The Asian Banker’s Strategic Business Intelligence for the Financial Services Community acknowledged First Bank’s outstanding performance. The bank achieved over 100 percent revenue growth while reducing its cost-to-income ratio to 16.5 percent.
Small and medium-sized enterprises (SMEs) contributed 26 percent of the bank’s total revenue, and the SME customer base grew by 7 percent, reaching over one million customers. This significant growth earned First Bank the awards for Best SME Bank in Nigeria and Africa.
Comprehensive Solutions for SMEs
First Bank offers a wide range of solutions to meet the needs of SMEs. These include core financial services and flexible financing options throughout the business lifecycle. Through its Sub-Saharan Africa subsidiaries, the bank’s integrated platform helps businesses grow, reduce operational costs, and expand into regional and international markets.
First Bank supports its customers with exceptional value propositions tailored to each industry sector, digital innovations, and a robust relationship banking approach. This commitment to customer engagement and satisfaction has set First Bank apart from its competitors.
Acknowledgment and Dedication
The Group Head of Marketing and Corporate Communications at First Bank, Folake Ani-Mumuney, expressed her delight at the recognition. She dedicated the awards to the bank’s esteemed SME customers, who have significantly impacted the socio-economic growth of Nigeria and Africa. Ani-Mumuney emphasized First Bank’s commitment to delivering the highest standard of value and excellence for 130 years.
Recent Accolades
In addition to the Asian Banker Awards, First Bank has received numerous other accolades. These include the Best Private Bank in Nigeria and the Best Private Bank for Sustainable Investment in Africa by Global Finance. These awards recognize the bank’s exceptional leadership in integrating sustainable practices into its operations.
Historical Background
The First Bank of Nigeria Limited, established in 1894, is the premier bank in West Africa. It is a leading financial inclusion services provider in Africa and a digital banking giant. First Bank operates internationally across three continents: Africa, Europe, and Asia. Its subsidiaries include First Bank UK Limited in London and Paris, First Bank in several African countries, and a representative office in Beijing, China. All subsidiaries are registered by their respective Central Banks to provide comprehensive banking services.
Comprehensive Services and Digital Innovation
First Bank has built a reputation for solid relationships, good corporate governance, and strong liquidity. It has been at the forefront of promoting digital payments in Nigeria, issuing over 13 million cards to customers. The bank has made significant investments in technology, innovation, and transformation. Its cashless transaction drive is supported by nearly 23 million active customers using digital channels, including the USSD Quick Banking service.
Extensive Reach and Services
With over 42 million customer accounts across Nigeria, the UK, and sub-Saharan Africa, First Bank provides a comprehensive range of retail and wholesale financial services through more than 820 business offices and over 233,500 agent locations. The bank also offers pension fund custody services through First Pension Custodian Nigeria Limited and nominee and associated services through First Nominees Nigeria Limited.
Commitment to Diversity
First Bank is committed to diversity, as its policies, partnerships, and initiatives demonstrate. The bank has a female-to-male employee ratio of about 39 percent to 61 percent, with 32 percent of management positions held by women. The First Bank Women Network initiative aims to address the gender gap and increase women’s participation at all organizational levels. The bank’s membership in UN Women affirms its commitment to equal opportunity, inclusion, and non-discrimination.
Recognition and Awards
First Bank has received numerous awards for its performance and services. It was named ‘Most Valuable Bank Brand in Nigeria’ by The Banker Magazine of the Financial Times Group for six consecutive years and ‘Best Retail Bank in Nigeria’ by the Asian Banker International Excellence in Retail Financial Services Awards for eight years. In 2022, The Banker Magazine ranked First Bank as number one in Nigeria regarding overall performance, profitability, efficiency, and return on risk. The bank also received several awards from International Finance Magazine and Global Banking and Finance Magazine.
Recent Awards
In 2023, First Bank received several notable awards, including ‘Best Private Bank for Sustainable Investing in Africa’ by Global Finance Awards, ‘Best Sustainable Bank in Nigeria’ by International Investors Awards, and ‘Best Financial Inclusion Service Provider in Nigeria’ by Digital Banker Africa. The bank was also recognized as ‘African Bank of the Year’ by African Leadership Magazine and ‘Best Corporate Bank in Nigeria’ by Euromoney Awards.
Credit Ratings and Vision
First Bank’s global credit rating was A+ with a positive outlook, while Fitch and Standard & Poor’s rated it A (nga) and ngBBB+, respectively, with stable outlooks. The bank’s vision is to be Africa’s Bank of first choice, and its mission is to provide the best financial services possible. This commitment is anchored on the core values of Entrepreneurship, Professionalism, Innovation, and Customer-Centricity.
First Bank aims to deliver accelerated growth in profitability through customer-led innovation and disciplined execution. The bank promises to provide the ultimate gold standard of value and excellence, positioning its customers first in every respect.
MultiChoice Fined for Contempt and Ordered to Offer Free Service
The Nigerian consumer tribunal fined MultiChoice Nigeria 150 million naira ($107,142.86) for contempt of court. The tribunal also ordered the company to offer subscribers one month of free service. MultiChoice, which operates DSTV and GoTV, increased subscription rates by about 25% in May, leading to complaints from subscribers.
Court’s Authority and Response
The Competition and Consumer Protection Tribunal (CCPT) ruled against MultiChoice after subscriber Festus Onifade filed a lawsuit. Onifade argued that the company’s eight-day notice before the price hike was insufficient.
The tribunal had previously restrained MultiChoice from raising prices, but the company defied the order and challenged the court’s jurisdiction. The tribunal, led by Justice Thomas Okosu, asserted its authority over consumer rights cases and imposed a fine on MultiChoice for defying its order.
Nigeria’s Purchasing Power parity is expected to Reach $1.85 Trillion by 2029
The International Monetary Fund (IMF) has projected that Nigeria’s economy will reach $1.852 trillion in purchasing power parity (PPP) by 2029. This forecast indicates a significant growth trajectory for Nigeria’s currency purchasing power over the next five years. The PPP rate reflects the currency needed to buy the same goods and services in different countries.
Current Economic Challenges
Nigeria is facing an exchange rate crisis, with the naira plummeting against the US dollar. The country’s Gross Domestic Product (GDP) in PPP terms is projected to rise from $1.36 trillion in 2023 to $1.852 trillion in 2029. However, the weak naira and high inflation, currently at 33.69%, are affecting the purchasing power of Nigerians. Inflation is expected to decline to 14% in the next five years.
Consistent Growth Trend
The IMF data shows a consistent growth trend, with Nigeria’s share of global GDP based on PPP expected to reach 0.78 percent by 2029. This indicates a slight increase from 0.77 percent in 2023. The steady growth in Nigeria’s PPP brings hope that the country’s economic trajectory is progressing.
Economic Recovery and Future Prospects
Nigeria, the fourth-largest economy in Africa, has faced significant challenges, including a recession in 2020 caused by the COVID-19 pandemic and a decline in oil prices. Despite these challenges, Nigeria’s economy is gradually expanding and is expected to continue this trend over the next five years. The country’s share of global GDP has remained relatively stable, fluctuating between 0.775 percent and 0.778 percent from 2024 to 2028.
Projections and Recovery
Nigeria’s GDP in PPP terms has shown steady recovery and growth over the past few years. However, the country’s real GDP is less than $500 million and is expected to slide further this year. Based on IMF estimates, Nigeria’s GDP in US Dollars declined from $477 billion in 2022 to $375 billion in 2023, expected to drop to $253 billion in 2024.
Future Economic Position
In 2024, Nigeria’s GDP in PPP terms is expected to reach $1.44 trillion, increasing to $1.51 trillion in 2025 and $1.587 trillion in 2026. The growth is projected to continue in 2027, with a GDP of $1.67 trillion and $1.759 trillion in 2028. With this trend, Nigeria could regain its position as Africa’s largest economy, overtaking South Africa.
Expert Opinions
Bismarck Rewane, the chief executive officer of Financial Derivatives Company, projects that Nigeria could regain its top place as Africa’s biggest economy by 2028 if it sequences its reforms correctly. This projection aligns with the IMF’s optimistic forecast for Nigeria’s economic growth in PPP terms.
