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IGA IDUNGANRAN:Iga Idunganran is the Official Residence of the Oba of Lagos, situated on Lagos Island. It is also a tour...
13/09/2020

IGA IDUNGANRAN:

Iga Idunganran is the Official Residence of the Oba of Lagos, situated on Lagos Island. It is also a tourist attraction.

Dating back to the 15th century, the Lagos Island was originally owned by the island’s first inhabitant Chief Aromire, an Ile-Ife nobleman, who used it as a fishing post and pepper farm.

The ancient palace was initially built in 1670 for Oba Gabaro (1669-1704) and the modern part was completed and commissioned on 1 October 1960 by the Prime Minister of Nigeria, Abubakar Tafawa Balewa.

Recently modernized by the late Oba Adeniji Adele II and Oba Adeyinka Oyekan II, it underwent additional modernization in 2007/8 by the present Oba Akiolu in conjunction with the Lagos State government and the Nigerian Museum.

IGA, derived from the Oyo/Ife Yoruba language GAA meaning Royal Home or Palace, IDUN means land, place or sound of while IGANRAN is the Yoruba word for pepper.

Iga Idunganran therefore translates to mean the palace built on a pepper farm.

Past Oba of Lagos:

Adeyinka Oyekan {1965 - 2003}

The grandson of Oba Oyekan I, he was the first king to be crowned post-independence and he enjoyed a long reign. An alumnus of Methodist Boys’ High School, King’s College, and Yaba College of Higher Education, he was a pharmacist, Christian, and former Sunday School Teacher.

Adeniji Adele II {1949 - 1964}

Born in 1893, he was the grandson of Oba Adele I and the great grandson of Ologun Kutere. He was an alumnus of Holy Trinity Primary School and CMS Grammar School.

A former surveyor in the colonial service, he was the last Oba of Lagos before independence in 1960. He was politically active in the fight for independence and was a member of Awolowo’s ‘Egbe Omo Oduduwa’, supporting the Nigerian Youth Movement in opposition to Azikiwe’s and Herbert Macaulay’s NCNC/NNDP.

The descendants of the House of Dosunmu contested his ascension to the throne. However, the Privy Council of England upheld his right to the throne in 1957, and he remained on the throne until his death in 1964.

Falolu Dosunmu {1932 - 1949}

Of the house of Dosunmu, he was a fisherman whose election as king was a rushed affair contested by Sanusi Olusi, who sought reinstatement after the death of Oba Eleko. Between the government and the chiefs’ majority votes, his kingship was affirmed.

Olusi then proceeded to undermine him by insisting on the use of the royal insignia, dress, and manner. Oba Falolu sought the intervention of Governor Cameron who ordered Sanusi Olusi to stop.

Oba Falolu resisted the idea of taking his directives from the commissioner, showing deference to British officers, or meeting the commissioner at his office. He also instituted the practice of documenting native laws, customs, and meetings concerning the kingship of Lagos. He worked to strengthen the influence of the throne until his death in 1949.

Sanusi Olusi { 1928 - 1932}

The great grandson of Ologun Kutere, he was a trader and the first Muslim Oba of Lagos. He had contested the throne of Lagos three years prior but lost to his predecessor.

Ibikunle Akitoye { 1925 - 1928}

The grandson of Oba Akitoye, he was elected king after the deposition and exile of Oba Eshugbayi Eleko. He was a western-educated Christian, an alumnus of CMS Grammar School, and President of the United Native Africa Church.

Owing to the reason behind the deposition of his predecessor, the people rejected him as king and agitated for the return of Eleko, attacking him in 1926.

By 1928, Eleko’s advocates scored a major victory with the Privy Council of England advising that he apply for a writ of Habeas Corpus. Knowing the implication of this development, Akitoye sought proof of this decision.

Upon confirmation, he reportedly loaded his revolver and drank a lot when he returned home. He died the following day.

Esugbayi Eleko { 1901 - 1925 and 1931 - 1932}

The son of Dosunmu and brother of his predecessor, Oyekan I, he was a symbol of the indigenous-colonial struggle between the British colonial government and traditional systems in Nigeria; the beginning of the eventual struggle for independence.

He protested the water tax levy imposed by the colonial government for the introduction of pipe-borne water, on the grounds that it was a necessity for only the Europeans and should therefore be funded by them.

He also clashed with the government over the administration of his traditional and political powers in appointing four Muslim leaders at the Central Mosque, without seeking government approval.

He then fought legal battles with the British government over his deposition and deportation from Lagos to Oyo owing to his tacit support for Herbert Macaulay’s anti-colonial actions and utterances, a fiasco referred to as the ‘Eleko Affair’. This deportation put an end to his first reign leading to the installation of two other kings while he was in exile.

When legal proceedings began to look favourable for Oba Eleko, and agitations for his return from exile became insistent, the then incoming Governor Cameron decided to settle with him out of court. With this victory, he returned to the palace in 1931 where he remained until his death in October 1932.

Oyekan I { 1885 - 1900}

The son of Dosunmu, he ascended the throne a month after his father’s death in 1885. It was in his time that the political and financial strength of the throne experienced even greater decline than was experienced by his father.

Despite being known for his gentle disposition, he still managed to acquire an enemy; Apena Ajasa. This haunted him for the rest of his reign, leading to a decline in his influence among some powerful chiefs including Apena.

His annual income from the British government also dropped to £200 from £1,000, before peaking at £400. He reigned for fifteen years, and died in 1900.

Dosunmu { 1853 - 1885}

The son of Akitoye, he succeeded his father as Oba and was a first cousin to his father’s predecessor the second time around. He was also the first Oba to accede to the throne after Lagos had officially become a British colony and, in a break from tradition, was appointed by the British Consul Campbell. In 1861, he was compelled to cede Lagos to the British government.

From then, he received an annual income from the British government to the tune of £1,000 according to the treaty signed by his father, Akitoye, in return for giving up rights to custom duties and unrestricted trade.

Like his father, Akitoye, he contended with Kosoko for much of his reign. This inherited rivalry greatly contributed to a decline in his political and financial power. He died in 1885.

Kosoko { 1845 - 1851}

The son of Osinlokun, he was the nephew of his predecessor. He was deposed by the British government and replaced with his uncle whom he had ousted earlier. This was due to his support of slave trade as opposed to his uncle who sought to end it.

After Akitoye won the final war over the throne with the help of the British government, Kosoko fled to Epe, where he continued to make trouble for Akitoye by having his men abduct people from their farms.

He eventually resorted to more subtle ways of undermining Lagos under the reign of the next king, Oba Dosunmu, through an agreement with the British representative, Consul Campbell. The Treaty of Epe, signed in 1854, gave him the means to flourish economically while Dosunmu began to experience a decline both politically and economically. Enjoying a close friendship with Governor Glover, he continued to increase in wealth with fewer restrictions to trade than his rival. Kosoko lived a long, albeit turbulent life, and died in 1872.

Akitoye { 1841 -1845 and 1851 - 1853}

One of the sons of Ologunkutere, he had a unique place in the line of succession. He reigned twice and, thus, was an uncle to his predecessor and first successor, and father to his second successor.

He sought to end slave trade and was strongly opposed and eventually deposed by the people in Lagos who had stakes in the trade. His successful dethronement came about through the collusion of those slave traders with his first successor, Kosoko.

Kosoko was his nephew and the rightful successor to the throne. However, he had been in exile upon the death of the former king, Oluwole. Upon Akitoye’s accession to the throne, he naively sought to bring Kosoko back to the kingdom against the advice of his loyal chiefs, among whom was Eletu Odibo, the chief kingmaker. This would prove to be a costly mistake.

Kosoko plagued him all through his reign, fighting him with the aid of his loyal men until he had to flee to Ijebu. Kosoko ordered his men to bring back the head of Akitoye, but they couldn’t bring themselves to murder their king, paying him homage instead. They reported to Kosoko that they had been cast into a trance by him and had thus allowed him free passage.

Akitoye sought the help of the British powers who, by this time, had been slowly making colonies of the neighbouring lands. With their backing and superior military strength, he ousted Kosoko in 1851 and reclaimed his throne. He then signed a treaty with the British government, putting an end to slave trade.

Oluwole {1834 - 1841}

The son of Adele, he was a first cousin to his predecessor. He also died without a son. His accession to the throne was the outcome of a feud between his first cousin who was the rightful heir, and the kingmaker called Eletu Odibo.

The kingmaker chose Oluwole as king instead of Kosoko by switching hands from left to right and vice versa, contrary to instructions, during the consultation of the oracle.

He died in 1841 and was succeeded by his uncle, Oba Akitoye.

Idewu Ojulari { 1819}

The son of Osinlokun, Ojulari’s reign was short—shy of two years—and his end was ignominious. Said to have been peace loving and not given to oppression, he had the fatal flaw of being stingy towards his chiefs in addition to not having a child. The lack of children to succeed him became a tool in the hands of the elders even though their true grouse was with his frugality.

Word reached him of the elders’ talk of him being an unfit king because he had no children to succeed him. Recognizing the danger in such talk going about, he made overtures of generosity to the elders. But it was too late.

They would not be appeased and sent word to the Oba of Benin of their vote of no confidence in his kingship. The Oba then sent him a skull and a sword to choose how to end his life. The skull signified su***de, and the sword signified war. He could have ignored both options and gone on exile, but he took poison instead and died.

Osinlokun {1780}

One of the sons of Ologun Kutere, he was one of the brothers of his predecessor.

Adele I { 1775}

Adele’s brother, Osinlokun, was the rightful heir to the throne of their father, but Adele was crowned king because he had been his father’s favourite and enjoyed the favour of the elders. The love of the elders waxed cold eventually as they came to realized changes in Adele’s mode of government.

They considered his children’s introduction of the Egun fe**sh masquerade as beneath the dignity of the royal household. Adele himself also grew to be insecure concerning Osinlokun’s legitimate claim to the throne, and he waged war against his brother.

Osinlokun in turn, stirred up trouble for him by secretly instigating the people of Iwere to fight Adele and prevent him from successfully carrying the body of their father, Ologun Kutere, to Benin for burial.

Capitalizing on the rivalry between the brothers, the elders eventually ousted Adele and replaced him with Osinlokun.

He waged war against his brother upon catching wind of the elders’ plans, but was defeated and exiled in Badagry.

He spent the rest of his days in Badagry, becoming their Paramount Chief and helping them win their battles.

Ologun Kutere { 1749 - 1775}

He was the matrilineal nephew of his predecessor, Eletu Kekere. During his reign, trade grew, extending to the Ijebus who brought in their foodstuff and palm produce to exchange with the Portuguese slave traders for spirits and to***co, among other commodities.

With part of his name, Ologun, meaning ‘War Chief’, he displayed great military strength, subduing rebellion from the people of Iddo Island when they refused to pay tributes. While he was regarded as a good and kind-hearted king in some quarters due to the relative peacefulness of his reign, he was regarded as tyrannical in others, and his power, absolute.

He consolidated on the influence of Lagos as expanded by his predecessor, Akinsemoyin, as well as the close relationship with Badagry. He once averted a war on Badagry declared by the King of Dahomey in present-day Benin Republic, by appeasing the latter with gifts through his emissaries.

A father of many children, including Akiolu, the ancestor of the present Oba of Lagos, all the subsequent Obas of Lagos have descended directly from Ologun Kutere’s lineage.

Eletu Kekere { 1749}

The son of Gabaro, he acceded to the throne after the death of his predecessor, Akinsemoyin. His reign was short and he died without issue.

Akinsemoyin { 1704 - 1749}

One of the sons of Ado, he was the brother of his predecessor. He had sons but none of them would succeed him; instead, a nephew born of his sister succeeded him. The Iga Idunganran was built in his time, and roofed with tiles received as gifts from the Portuguese slave traders.

During the reign of his predecessor and brother, they fell out over Gabaro’s decision to elevate the sons of the Olofin to the status of chiefs and give them absolute power over their land. In the course of the dispute, Akinsemoyin was banished to Apa (Modern day Badagry), where he grew acquainted with Portuguese and Brazilian slave traders.

After Gabaro’s death, he returned to Eko and ascended the throne in 1704. Because of his good relations with the Portuguese slave dealers in Badagry, he invited them to Eko. This led to the establishment of slave trade in Eko. Trade began to flourish with the exchange of other goods such as palm oil and palm kernels for gunpowder, salt, and spirit, amongst others.

Lagos became a renowned trade centre attracting people from neighbouring lands and countries. The influence of Akinsemoyin extended to nearby Badagry as well, with both monarchs forming an attachment that extended to their descendants.

He died in 1749* and was buried in Benin.

Gabaro { 1669 - 1704}

The son of Ado, the first king, he persuaded the Idejos, sons of Olofin, to allow him move his seat of power from Iddo Island to Isale Eko.

He achieved his father’s dream of settling in the meeting hall on Aromire’s pepper farm, now known as ‘Iga Idunganran’. He also made his subjects pay annual tributes to the Oba of Benin.

It was during his reign that the Idejos emerged as White Cap Chiefs, giving them authority and power over all the land they had claimed. He made them a class of chiefs similar to the silk hat chiefs of the Benin kingdom.

His brother, Akinsemoyin, did not approve of his actions and protested loudly, thus gaining a reputation for tyranny and obstinacy.

Ado { 1630 - 1669}

Ado was the first king of Lagos; he was the son of Asipa who was appointed to govern the land by the Oba of Benin. He had successors through all three of his children, male and female. Ido Island was so named because of him. It was formerly called ‘the house of Olofin’.

It was during his reign that the Olofin’s children decided to build a meeting hall on Aromire’s pepper farm in Eko. He ruled from his base in Iddo Island and exacted tributes from Olofin’s sons, for payment to the Oba of Benin.

He had planned to move his seat of power from Ido Island to Isale Eko, but passed on before he could realize this plan.

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The Billionaire Who Lost Everything.This is a true life story of Nigerian billionaire Femi Otedola on the day he lost ev...
10/09/2020

The Billionaire Who Lost Everything.

This is a true life story of Nigerian billionaire Femi Otedola on the day he lost everything

Life was rosy for Femi Otedola until it took a sudden turn leaving him billions in the red. He had to start all over again.

In 2008, a shipment containing one million tons of diesel set sail, heading for the shores of Nigeria. The owner of the vessel, Femi Otedola, Chairman of Forte Oil, a petroleum and power generation company, had grown the company to one of the largest in Nigeria, with over 500 filling stations, according to Forbes. The growth had been rapid and profits were at an all-time high. Then disaster struck.

“I had about 93 percent of the diesel market on my fingertips. All of a sudden oil prices collapsed and I had over one million tons of diesel on the high seas and the price dropped from $146 to $34” —Femi Otedola.

That was only the beginning of his problems. The naira was subsequently devalued and interest began to skyrocket. When the dust settled, Otedola had lost over $480 million due to the plunge in oil prices, $258 million through the devaluation of the naira, a further $320 million due to accruing interest and then finally $160 million when the stocks crashed.

“I had two options, either to commit su***de or to weather the storm. I decided to weather the storm. I just knew it was a phase I had to go through.

You see God prepares you for greater things and of course experience is the best teacher so I had to learn my lessons. I took the bitter pill”. — Femi Otedola

Otedola was now $1.2 billion in debt. He sought solace in the only thing that had set him on the path to discovering oil, destiny.

“You cannot compete with destiny, so it was my destiny to make billions every month and lose billions as well. I said to myself ‘I was not going to have friends and enemies, I was only going to have competitors.”

At the age of six, Otedola had already discovered his knack for business. He would provide manicure and pedicure services to his father and his friends and write them a receipt for payment.

On his birthday, while all his friends wanted toys, Femi Otedola would ask his father for a briefcase instead. His father, Sir. Michael Otedola, as a former Governor of Lagos State, was a well respected man. But now, his son’s public fall threatened to destroy that name.

“After I lost the money, something that struck me was that my father had always been my role model in life and the first thing I had to do was to protect his name. He had a policy; honesty was the best policy, so I had to protect that name and his integrity.”

Just after the global banking crisis had struck, the Nigerian government established the Asset Management Corporation of Nigeria (AMCON) to buy up distressed loans. Otedola’s loan was sold to AMCON, by the bank he blamed for his challenges.

“Experience is the best teacher. I didn’t have a proper structure and I also put the blame on the banks for not advising me. All they were interested in was the profits. They were not interested in sustainability of the business, they were short-sighted and all they were interested in was throwing money at me. So they never advised me,” — Femi Otedola.

The banks had to shave off about $400 million from the debt leaving Otedola $800 million in the red. AMCON offered him a restructuring deal, which Otedola declined. He opted instead to repay what he owed and start all over again.

“So we got a reputable firm to value my assets. I had about 184 flats, which I gave up. I was the largest investor in the Nigerian banking sector, which I gave up, I was also a major shareholder of Africa Finance Corporation and I was the Chairman of Transcorp Hilton. I was a shareholder in Mobil Oil Nigeria Limited, the second largest shareholder in Chevron Texaco, Visafone and several companies which they valued, and I had to give up to repay the debt.”

Femi Otedola was left with just two properties, his office space and a 34-percent stake in African Petroleum, which he rebranded, to Forte Oil in 2010.

In 2014, Otedola bounced back to reclaim his place on the FORBES rich list and currently has a net worth of $1.8 billion, according to the FORBES wealth unit.

These days, he is much wiser; there are systems in place to prevent a similar collapse of his mammoth business empire.

According to the mogul, the day he lost everything was the day he learned his biggest lesson.

It taught him that he could overcome anything.

Source: CNBC Africa

PS:

Billionaires lose millions to become billionaires.

Millionaires lose thousands to become millionaires.

But the poor don't want to lose anything, so they remain where they are.

The greatest glory in living lies not in never falling, but in rising every time we fall. ― Ralph Waldo Emerson

If I fall, I'll fall five feet four inches forward in the fight for freedom. I'm not backing off. ― Fannie Lou Hamer

“When you fall down, rise up. When you fall again, rise up again. This is just a developmental process that makes a healthy baby become a successful man.” ― Israelmore Ayivor

Be Inspired

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Abiru Bows out of Polaris…Effective from tomorrow, August 31, Group Managing Director/Chief Executive Officer, Polaris B...
30/08/2020

Abiru Bows out of Polaris…

Effective from tomorrow, August 31, Group Managing Director/Chief Executive Officer, Polaris Bank Limited, Mr. Tokunbo Abiru, will retire after about 29 years out of a 32-year private sector life. At Polaris, Abiru successfully executed a transformation plan, which brought the bank from liability to profitability. Bamidele Famoofo writes

Last Monday, the Group Managing Director/Chief Executive Officer, Polaris Bank Limited, Mr. Tokunbo Abiru formally announced his retirement from the bank. His retirement will take effect from tomorrow after about 29 years in the banking sector, serving in different capacities.

The last four years were perhaps the most defining part of his 29-year banking career. On July 4, 2016, precisely, the Central Bank of Nigeria (CBN) appointed him to lead the defunct Skye Bank Plc out of insolvency. With other professionals on the board of the bank, Abiru has successfully led transformation of the defunct bank to become Polaris Bank in four years.

He provided synopsis of how he transformed Skye Bank to Polaris Bank in a short note he sent to his friends and associates, announcing plan to bow out of the bank. Specifically, Abiru wrote: “With the support of the Board and Executive Management of Polaris Bank and by God’s grace, I have delivered on the Central Bank of Nigeria’s mandate to stabilize and establish the Bank on the path of sustainable profitability.

“Polaris Bank is today a digitally enabled, customer-friendly and forward-looking enterprise, which has secured its rightful place in the vanguard of Nigeria’s banking industry. What remains outstanding is the divestment of government ownership from the bank to suitable investors in order to further solidify the journey on the path of continuous growth.”

From his personal account and the bank’s financial statements, Abiru has no doubt put Polaris on a good standing, pulling it out of liability to profitability. Evident from verified documents, the bank is now not just profitable and stable, but also poised to compete effectively with the established competitors in the Nigerian banking industry.

A Peep into Polaris

Indeed, the last two years have been noteworthy in the transformational history of Polaris Bank, a bridge bank the Central Bank of Nigeria (CBN) established September 21, 2018 to manage the assets and liabilities of Skye Bank. The apex bank resorted to this option on three related grounds.

First, as revealed in its records, Skye Bank, the defunct precursor of the bridge bank, had about 80 per cent non-performing loans far above the regulatory standard. Second, other prudential and adequacy ratios of the defunct bank abysmally performed much below the thresholds of the apex banks. Third, the owners of Skye Bank failed to recapitalise the bank.

Altogether, these grim realities shaped CBN’s decision first on July 4, 2016 and afterwards on September 21, 2018. On the former date, the apex bank announced the takeover of Skye Bank. With Abiru as GMD/CEO, consequently, the CBN appointed an 8-member Board of Directors under the chairmanship of Mr. Muhammad Ahmad for the defunct bank.

Also, on the latter date, the apex bank established Polaris to assume the assets and liabilities of Skye bank in consultation with the Nigerian Deposit Insurance Corporation (NDIC), a statutory body set up to protect depositors and guarantee the settlement of insured funds. That decision marked the second phase in the history of the troubled bank in which both customers and investors practically lost confidence.

Obviously, the rationale behind the strategy of the apex bank was pure and simple. As designed then, the CBN Governor, Mr. Godwin Emefiele, explained, the strategy is for the Asset Management Company of Nigeria (AMCON) to capitalise the bridge bank and begin the process of sourcing investors that will eventually buy out the AMCON.

Return to Profitability

From the abysmal records of its precursor, Polaris has come out stronger under its new management, now performing impressively and lucratively as much as other banks that are not in crisis. The bank’s first audited report bears witness to positive change a management structured around sound corporate governance can bring about.
Under his leadership, undoubtedly, Abiru has changed the narrative of Polaris Bank from pessimism to optimism, more aptly from liability to profitability.

In its audited report, Polaris posted N27.35 billion profit after tax in the 2019 financial year. In terms of profits after tax, relatively, Polaris performed much better than N660 million posted by Ecobank; N7.13 billion by Sterling Bank; N10.66 billion by FCMB; N16.35 billion by Union Bank; N5.03 billion by Wema Bank and N2.95 billion by Unity Bank.

Besides its comfortable return to profit, Polaris reported N857.86 billion total deposits in the 2019 financial year, a major feat most banks of its status could not record. In the same financial year, for instance, Sterling Bank could only report the total deposit of about N827 billion, Stanbic IBTC 660.93 billion, Wema Bank N578.88 billion and Unity Bank 251.91 billion.

Likewise, its return on assets was quite impressive in the year under review. With its 2per cent return on assets, Polaris ranked ahead of Ecobank, which reported 0.03per cent; Sterling Bank 0.60per cent; FCMB 0.66per cent; Wema Bank 0.70per cent; First Bank 0.72per cent; Unity Bank 0.91per cent; Union Bank 0.94per cent; Fidelity Bank 1.21per cent; Access Bank 1.35per cent as well as UBA 1.54per cent.

In terms of return on equity, Polaris reported 33per cent, almost at par with GTBank at 33.67per cent. From available records, most Tier I banks did not post better returns on equity than the bridge bank. In the 2019 financial year, Zenith could only post 15.85per cent; Access Bank 17.44per cent, UBA 15.35per cent, First Bank 6.66per cent and Ecobank as low as 0.24per cent.
With the exception of Stanbic IBTC that returned 34.79per cent on equity, virtually all Tier II banks were ranked below Polaris in their performance.

In 2019, as shown in their audited reports, Sterling Bank only returned 6.29per cent equity; FCMB 6.58per cent; Fidelity Bank 11.90per cent; Union Bank 7.55per cent; Wema Bank 9.20per cent and Unity Bank’s equity regressed by 1.22per cent, all of which were ranked below the bridge bank.

At the end of the financial year, Polaris’ capital adequacy ratio comfortably stood at 14per cent while its liquidity at 81per cent. These ratios are well above regulatory requirements, thereby demonstrating a strong return to prudential compliance and providing assurance of a strong capital buffer and careful liquidity management to customers and regulators.

With respect to its cost-to-income ratio, Polaris recorded 59per cent relatively better than Ecobank (83.33per cent), Access Bank (70.08per cent), UBA (68.26per cent) and First Bank (75.83per cent). Only GTBank and Zenith, both Tier I banks, posted better cost-to-income ratio than Polaris. When compared with banks of its status, Polaris did better than Fidelity Bank, which reported 73.79per cent; FCMB 86.71per cent; Sterling 84.24per cent and Union Bank 84.27per cent.

From about 80per cent record of its precursor, Polaris’ non- performing loans at 46per cent is relatively high given its inherited portfolio. Obviously, with its management’s aggressive efforts to improve loan quality, strengthen collateralisation and collect outstanding loans, the non-performing loans of the bank would come down significantly in the foreseeable future.

Challenges of Transformation
Without result-oriented management, Polaris would not have been able to transit from liability to profitability, only in four years of its transformation. This perhaps justified the decision of the apex bank to appoint Ahmed as the Chairman of Polaris Board; Abiru as its GMD/CEO and other reputable professionals as executive and non-executive directors to pull the bank from the brink of outright collapse.

At its takeover, a failure of corporate governance was one of the bank’s major problems. This was evident in what the new management described the bank’s high level of non-performing insider-related loans. By implication, its funding structure and risk asset portfolio mix signified improper risk management exposing it to policy and currency risks.

Also, reports of forensic audits, which reputable accounting were engaged to conduct, revealed significant infractions under the bank’s previous managers. As a result, Polaris suffered significant deposit attrition. Customers, depositors, shareholders and institutional partners alike doubted its future when the apex bank announced its take-over on July 4, 2016.

Under Abiru, however, the new management managed the bank’s grievous challenges, which culminated in reduction of deposit loss, restoration of customer confidence and stabilisation of the bank. Also, it settled many matured trade and expired bilateral obligations and restructured outstanding balances with the relevant institutions and counterparties.

Abiru’s team, substantially addressed the challenges of loan security inadequacy and improper collateral documentation in the legacy portfolio of the bank. It equally cleaned up loan and collateral documentation on most of the high value facilities, thereby putting the bank in a stronger position to enforce its rights as a lender.

With its aggressive loan recovery drive, the bank recovered over N60 billion of outstanding bad loans within Abiru’s first year in office. Under Abiru’s leadership, records showed, loan recovery rose to N100 billion at the end of the second year. Also, it reached settlement and restructuring agreements with many of the chronic bad debtors resulting in substantially improved payments and prospects of future recoveries.

Abiru, likewise, pursued other initiatives to restructure and reposition the bank based on its mandate including cost management and optimisation and divestments to improve the institution’s financial position. Among others, cost management initiatives include branch rationalisation, review of service contracts and cash management operations all of which have resulted in hundreds of millions of financial savings.

Repositioned for Future
With its profit before tax standing at N27.83 billion at the end of the 2019 financial year, Abiru and his team have returned Polaris to profitability in line with the mandate the apex bank set for the new management. Now on a strong foothold, the bank has been repositioned as a major player in Africa’s biggest economy with over 370 branches nationwide.

Already, the bank has been restructured for sustainability. At the beginning of the 2020 financial year, Abiru reeled out future plan for the bank in a note to its staff members nationwide. He wrote in part: “2018 was pivotal in the life of the bank with the transition from Skye to Polaris. 2019, however, is even more important as we commence the journey of truly building a bank and brand we will all be proud of in years to come.”

“I am confident our bank has indeed stabilised and is now headed towards our purpose, which is to become a top retail bank” in Nigeria. This was demonstrated by our collective and sustained performance trajectory in 2019. Our prudential ratios-capital adequacy and liquidity ratios are now in full compliance with stipulated regulatory requirements.

“We returned to profitability on a month-on-month basis throughout 2019. Our cost-to-income ratio is also in line with industry average. We aggressively pursued our IT infrastructure refresh with a view to replacing and upgrading the aged, obsolete and sub-optimal performance IT equipment. The impact on efficiency, effectiveness, transactions and customers’ experience will become noticeable from the end of the first quarter of 2020…”

With this impressive performance, therefore, Abiru laid out strategic initiatives for the bank’s future growth. He cited the bank’s digital transformation, which had begun with recruitment of professionals and setting up of structures and systems. He cited the bank’s agency banking platform, an initiative designed to provide banking services to the unbanked and under-banked, especially in locations where the bank is not present.
Confident of taking the bank to an enviable status in the nearest future, Abiru reaffirmed his resolve to execute its corporate transformation plan, which according to him, was designed to provide direction for the bank into the future and define its corporate and strategic aspirations.

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