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BIG STORY

Changemakers: Segun Agbaje, Building A Great African Institution Through Digital Transformation

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By Steve Coomber

When is a bank not a bank? That is a question Segun Agbaje, the multiple award-winning CEO and Managing Director of Nigeria’s Guaranty Trust Bank (GTBank) has been getting to grips with as he forges a new path for banking in Africa.

Agbaje was always destined to become a banker, it seems, although he took a circuitous route. Initially, he qualified as an accountant and practised in the US before tiring of auditing and returning to Nigeria to follow his father’s footsteps into banking. There, in 1991, he joined an exciting new venture, the Guaranty Trust Bank, founded by a group of young Nigerians the previous year.

As he worked his way up through positions of increasing responsibility, several events in which Agbaje played a leading role shaped his thinking about GTBank’s future: the initial public offering in 2004, listing on the Lagos stock exchange; entering the international capital markets with a Eurobond issue and listing on the London Stock Exchange in 2007.

“Those transactions exposed me to the international financial markets and the people who worked in them – merchant banks, investment bankers, lawyers, investors,” he says. “It gave me a better understanding of what people wanted from a first-class bank and best-in-class practices. It also encouraged me to think about the bank as an international institution, rather than just a Nigerian institution, and what it took to compete in the global economy.”

Agbaje became CEO of GTBank in 2011 and won the coveted African Banker of the Year award the next year. The award recognises financial industry leaders throughout Africa who have exercised “good vision and leadership” in guiding their organisation to strong financial performance, as well as having contributed to the impact of Africa’s financial services industry internationally.

During his tenure as CEO, the bank and Agbaje have won numerous awards. What is particularly interesting is the trend in types of award since GTBank has been under Agbaje’s leadership. Awards for financial performance have been joined by Innovative Bank awards, Best Mobile Banking and Mobile Money awards, Best Digital Bank awards and, most recently, Digital Wallet of the Year award.


‘I’m not sure that, if we removed the word “bank” in five years, we would be losing anything. We might actually even be gaining something’
This trend reflects Agbaje’s pioneering attitude towards digital transformation and the role of banking. Traditional bankers might think his view of the bank’s future a radical departure from mainstream banking, but for Agbaje it is change that has to happen: “Banks are going to become platforms, so we will become a trusted single, integrated platform,” he says. “Because the competition for banks has changed, where it was once other banks, now it is fintechs, telcos, Apple Pay, PayPal, payday-loan companies, salary-advance companies, even coffee shops. Any bank that stays with the traditional banking model is going to get smaller and smaller. All these other companies will be taking part of your share of business.”

If some of the digital giants, like Google and Apple, start to develop banking services, the word ‘bank’ could soon be associated with inefficiency and a lack of innovation, he adds. “I’m not sure that, if we removed the word ‘bank’ in five years, we would be losing anything. We might actually even be gaining something.”

While there may be a lot of disruption in the banking sector, Agbaje has a head start on many traditional banks. For example, the bank launched its Habari mobile platform in November 2018: “What we’re trying to create is something where, when you come to the bank, however you do that, you are not just coming to pay and receive,” he says. “You can come into our ecosystem and do just about everything – pay for tickets, book holidays, stream music, buy online, watch videos, and then, because we are a bank, we can provide the payment engine.”

The reputation of bankers and banking took a knock following the global financial crisis and Agbaje is well aware of the challenge banks face in terms of their relationship with the societies they serve. “A banking licence is a privilege, given to you by the regulator. Banks owe a social responsibility to the communities within which they operate,” he says. “Just as we monitor profits, costs and return on equity, we must also monitor how much we give back in terms of social responsibility.”

This is not just talk. The bank interacts with the community in many ways, from football education programmes and tournaments to its internationally renowned annual conference on autism (now in its ninth year); from its You Read Initiative aimed at promoting a culture of reading to the Social Impact Challenge designed to unearth ideas that can enrich the lives of local communities.

Many of the bank’s CSR initiatives are aimed at community development, promoting entrepreneurs and small businesses. For example, there is the GTCrea8 Convention aimed at helping undergraduates “build successful businesses out of their passion”. The bank is also building shared service facilities for businesses in the food and fashion sectors, so that these small businesses can benefit from the economies of scale enjoyed by large companies without the overheads.

The initiatives reflect Agbaje’s passionate belief in Africa’s economic potential: “It is a continent that I am completely bullish about, because I don’t think there are many places in the world that have both the natural resources, the human population, the distribution of millennials; who are just incredible people. If you are able to tap into and unleash that human capital potential it is a continent that has a huge growth upside,” he says.

“What we have in Africa is a leadership problem. There are pockets, organisations, where the leadership is good. Those organisations function the way you would in a developed economy. If you start to get people with a track record of achievement running things – whether that is in countries, governments, parastatals – they will bring that excellence and achievement to government and Africa will start to change.”

He is just the leadership role model that the younger generation needs. “My values are simple ones. I believe in hard work, humility, integrity, discipline. Those are the things that drive me,” he says. “If you have those values, show them, inculcate them into all the decisions that you make and you will be fine.”

He has naturally given some thought to what he might do after his time at GTBank: “Maybe I will get another platform to do something in the private sector. It could be in a completely different sector to banking. My first choice would be an Africa-focused organisation. A second option would be something, if not solely focused on Africa, with an emerging market emphasis.”

He would also be interested, he says, in mentoring young people with small businesses; helping them to think about organisational structure and governance, for example.

But for now, with two-and-a-half years left on his contract, he is fully focused on the transformation underway at GTBank. “I’m not finished,” he says. “We are trying to build a great African institution; putting the bank in the position I think it should be in – not just financially, but socially, being a well-run enterprise.”

Agbaje is not someone to trumpet his achievements, but if his vision for the future of one of Africa’s largest and most important banks comes to fruition, more plaudits are likely to be heading his way.

Agbaje on leadership:
“My role is first to set the tone, to talk
the talk. When we set a vision, goals,
objectives, values, I have to be seen to
live and walk those.”

“I like to be involved in a lot of the key
decision-making. So it is a balance: being
really handson, so that I know what is
going on, while also giving people a large
degree of autonomy, because the number
of people reporting to me means that I
cannot micro-manage them – I rely on
their abilities.”

“I believe in a flat organisational structure.
I don’t believe in creating silos. I would
rather have a squad as opposed to a team,
which means I probably have more direct
reports than most CEOs.”

BIG STORY

“I No Longer Identify As Nigerian” — Kemi Badenoch Finally Denounces Nigerian Citizenship

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Kemi Badenoch stated that she no longer identifies as Nigerian and does not possess a passport from the country.

The Tory leader, who was raised in Lagos and has Yoruba roots, mentioned that she has not held a Nigerian passport for about twenty years. Badenoch explained that although she knows the country “very well” and maintains an interest in its affairs, she believes her “home is where my now family is”.

While speaking on the Rosebud podcast, she said: “I have not renewed my Nigerian passport, I think, not since the early 2000s. I don’t identify with it any more, most of my life has been in the UK and I’ve just never felt the need to.”

She continued: “I’m Nigerian through ancestry, by birth despite not being born there because of my parents, but by identity, I’m not really. I know the country very well, I have a lot of family there, and I’m very interested in what happens there. But home is where my now family is, and my now family is my children, it’s my husband and my brother and his children, in-laws. The Conservative Party is very much part of my family, my extended family, I call it.”

Following the death of her father, Femi Adegoke, a doctor, in 2022, Badenoch said she had to obtain a visa to travel to Nigeria, describing the process as a “big fandango”.

She was born in a private hospital in Wimbledon, South West London, in 1980 before her parents took her to Nigeria. She was among the last to benefit from Britain’s birthright citizenship rule, which was abolished by Margaret Thatcher the following year.

Badenoch recalled feeling both British and Nigerian during her upbringing in Lagos. She said: “Finding out that I did have that British citizenship was a marvel to so many of my contemporaries, so many of my peers.”

She added that the reason she returned to the UK was a difficult one, saying it was because her parents believed “there is no future for you in this country”.

She also remembered “never quite feeling that I belonged there” while in Nigeria.

Badenoch has faced criticism from Lagos politicians over remarks she has made about Nigeria. She has often referenced her experiences in a country affected by corruption, military rule, and described Lagos as a place where “fear was everywhere”.

In December, Nigeria’s vice-president remarked that Badenoch “has every right to remove the Kemi from her name” if she was not “proud” of her Nigerian roots.

A spokesperson for Badenoch later clarified that she “stands by what she says” and that she is “not the PR for Nigeria”.

Arriving in the UK at age 16 to study, Badenoch shared on the podcast that she did not face racial discrimination in Britain “in any meaningful form”.

She said: “I knew I was going to a place where I would look different to everybody, and I didn’t think that that was odd. What I found actually quite interesting was that people didn’t treat me differently, and it’s why I’m so quick to defend the UK whenever there are accusations of racism. I did not experience prejudice in any meaningful form. That doesn’t mean prejudice doesn’t exist, that it doesn’t happen, many people do. But I didn’t, not seriously.”

She described the parliamentary group as an “extended family with lots of drama”.

She added: “I do see the Conservative Party as family, so much of what we do goes beyond party policy. It’s instinct, we recognise each other, we have the same sort of squabbles, and it’s why when people ask me about plots I just think, ‘eh, this is extended family stuff’. Anybody who’s got an extended family with lots of drama will recognise that.”

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BIG STORY

FG, States Launch Grassroots Development Scheme To Tackle Poverty, Unemployment

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The federal government and state governors have introduced a new initiative — the renewed hope ward development programme — aimed at creating employment, enhancing food security, and alleviating poverty.

The initiative was introduced on Thursday during a session of the national economic council (NEC) chaired by Vice-President Kashim Shettima in Abuja.

Reports indicate that the scheme is designed to directly empower at least 1,000 economically active individuals in every ward across Nigeria, thereby stimulating grassroots economic growth.

While addressing the press after the meeting, Atiku Bagudu, minister of budget and economic planning, said President Bola Tinubu, who was present at the meeting, described the programme as “a historic next step” in the administration’s reform agenda.

“Having stabilised the macroeconomy, the next step is to drill development down to the lowest levels so that, in all 8,809 wards, we can stimulate economic activity that will generate employment, reduce poverty, enhance food security, and strengthen social protection,” Bagudu said.

He noted that the programme will be co-funded by the federal, state, and local governments, capitalising on rising revenues from the federation account and complementing other development initiatives.

Bagudu explained that the project is grounded in Chapter Two of the Nigerian constitution, which compels all levels of government to harness national resources and encourage a self-reliant economy.

He referred to the effort as “a federation project” and said NEC approved his ministry to coordinate the programme as its secretariat.

Citing the recent International Monetary Fund (IMF) Article IV report, he pointed out that Tinubu’s reforms — including the removal of petrol subsidies, unification of foreign exchange (FX) markets, and improved revenue mobilisation — have strengthened Nigeria’s economic foundations.

“Mr president believes that to reduce poverty and food insecurity, we must invest collaboratively in the creative energy of Nigerians in every ward. Having achieved macroeconomic stability, this programme is the natural next step,” he said.

Hope Uzodinma, governor of Imo state, also spoke and confirmed the council’s unanimous support for the initiative, describing it as a tool to ensure reforms reach “the common man on the street.”

“The country is earning more money now, and so are subnational governments,” Uzodinma said.

“The president brought a programme that will fast-track the process of this additional money making a bigger impact by trickling down to the grassroots.

“This is how Nigerians will begin to feel the renewed hope agenda at their level.”

He highlighted that Tinubu’s reform policies are beginning to yield positive outcomes and emphasised the need to channel those benefits to the grassroots.

Uzodinma also mentioned that NEC deliberated on environmental impact assessments for major infrastructure projects, such as the Lagos-Calabar coastal road and the Sokoto-Badagry highway.

He said the council plans to establish a committee to align federal and state actions for the swift execution of these projects.

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BIG STORY

Trump Hits Nigeria With 15% Tariff In Revised Global Trade Blitz

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Nigeria, along with several other African nations, has been subjected to a 15 percent import tariff following a broad executive directive issued by United States President Donald Trump.

The White House disclosed the updated reciprocal tariff framework on Thursday.

Back in April, Trump had introduced extensive tariffs on various international trade partners, placing a 14 percent duty on Nigeria.

The implementation of these “reciprocal” tariffs was initially delayed for 90 days to allow time for bilateral trade negotiations, with the new deadline set for August 1.

Despite the extensions, most discussions did not lead to any new trade arrangements, prompting the enforcement of higher tariffs as part of Trump’s updated global trade strategy.

Across Africa, the United States was unable to finalize a single trade agreement, despite considerable efforts made by officials from both sides.

While countries explored options to navigate the tariff challenges, Trump also placed travel bans on multiple African nations.

Nigeria was not part of the original list, but was eventually included as the policy developed further.

Yusuf Tuggar, Nigeria’s minister of foreign affairs, mentioned that West African countries had intentions to enhance trade relations with the US but saw the travel bans as a major hindrance.

Here is the breakdown of the revised tariff categories:

10% – Falkland Islands, United Kingdom, and all other nations excluded from the executive order
15% – Afghanistan, Angola, Bolivia, Botswana, Cameroon, Chad, Costa Rica, Côte d’Ivoire, Democratic Republic of the Congo, Ecuador, Equatorial Guinea, Fiji, Ghana, Guyana, Iceland, Israel, Japan, Jordan, Lesotho, Liechtenstein, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Nauru, New Zealand, Nigeria, North Macedonia, Norway, Papua New Guinea, South Korea, Trinidad and Tobago, Turkey, Uganda, Vanuatu, Venezuela, Zambia, Zimbabwe
18% – Nicaragua
19% – Cambodia, Indonesia, Malaysia, Pakistan, Philippines
20% – Bangladesh, Sri Lanka, Thailand, Taiwan, Vietnam
25% – Brunei, India, Kazakhstan, Moldova, Tunisia
30% – Algeria, Bosnia and Herzegovina, Libya, South Africa
35% – Iraq, Serbia
39% – Switzerland
40% – Laos, Myanmar (Burma)
41% – Syria

China, which remains in a prolonged trade dispute with the United States, is still actively negotiating with the Trump administration.

Canada received a 35 percent tariff, while Mexico was hit with several levies including 25 percent on fentanyl, 25 percent on automobiles, and 50 percent on steel, aluminum, and copper, all of which will take effect in 90 days.

Brazil was initially given a 10 percent tariff.

However, an additional 40 percent duty was introduced on Thursday, raising Brazil’s total tariff rate to 50 percent.

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