SUCCESS WITHOUT SUCCESSOR IS NO SUCCESS– Subomi Balogun Otunba Michael Subomi Balogun, Chairman, First City Monumental Bank (FCMB) in this interview held at his Olori Omooba’s Place, Ikoyi, Lagos, spoke about the ‘small seed’ he ‘sowed’ about 30 years ago, which has today become an oak tree in the Nigerian financial system. He also spoke on other issues. BIODUN AKOMOLAFE makes excerpts: How will you describe your journey in the Nigerian financial market? My journey to what you see today has been divinely guided, and if you care to know the details, go to the Primrose Tower at the headquarters of the organisation you will read on the plaque: “This block, primrose tower is dedicated to the glory of God, as an embodiment of a young man’s faith in the unfailing support of the Almighty God and in his own destiny in spite of the seemingly insurmountable obstacles.” Secondly, it is also a monument of a young Nigerian’s determination to succeed, and to prove that given the opportunity, he has the might to attain the commanding height in the management of a financial institution. Lastly, it serves as a lesson to all mankind that in all things, mortals may have their say but in the final analysis, the Almighty God would have his way. That encapsulates my whole journey. I had a dream and a vision. I was cheated as an employee of another institution created by Nigerians and expatriates. I was actually the brain behind the whole thing. I went on a course to the United States and came back with ideas that we should set up a merchant bank, but when it came to selecting the chief executive, I was told that because I had a basic training in law, I could not be the chief executive. I was 42 and they brought a young man of 32 with little or no experience from America to come and ‘boss’ me. God gave me courage and tenacity of purpose, and that gave rise to the dream and vision which was clear by nature that God gave me. Much as I knew where I was going, the vista was misty. It was unbelievable that one Nigerian would say that if he did not get a position in a bank, he would go out to set up a bank. I was trying to prove that given the opportunity and with the support of the Almighty God, I can attain the commanding height in the management of a financial institution. I was trying to prove a point, but I was not arrogant, just by the grace of God. So when I felt cheated by not being allowed to head the institution created by a foreign institution, my former employers, I had the courage to resign, without anything in my pocket. I decided to start on a journey of self actualisation. It was not a proud journey; it was a journey of faith. It was turbulent and so many people still see me around after about 30 years of doing what no other Nigerian had done. Those of you who are older in the media know what battles I had fought, and people who didn’t know me felt I was arrogant. I wish they learned from what happened to me by being focused and having courage. You would find everything about my journey has been punctuated by my faith in God, and that faith was very strong. So 35 years ago, without thinking of what to do I threw in my letter of resignation. Dream is a personal thing and it is known all over the world that many institutions that have become large, were started by an individual, and I had a template which in this country was either known or not known. In the world, you have heard of JP Morgan, Rockefeller, Cadbury etc.; they were all individuals, and you have heard of Sir Sigmund Warburg, who was actually my template, who started the oldest merchant bank in Britain. So, when I decided to do it, I looked for him, read his book and even visited him before he died. You would find that most of his stories are divinely guided, and had been based on precedence. But in this country, for one individual to say I want to set up a bank, people thought it was sacrilegious whereas I was setting an example, I was being a pioneer. So, FCMB is a 30-year journey that was started by me. We had the old generation banks that were started by expatriates, and we had a few banks which were started by mergers, but there was no individual like in my own case. I got into it because I had a dream and vision that I put in my own personal culture of always looking for the best; culture of integrity and culture of business ethics. So when you ask how it all started; it was a dream by a young individual who felt cheated and wanted to start a bank by being a pioneer in his time. The banking industry has weathered many storms in recent times, how has FCMB survived most of the storm and come out stronger? Like a mother who has a child, though you may not walk with the child, your eyes, your mind would still be with the child. You want to see the child grow and develop. The child is able to meet up with its peers. Though at about 80, I am retired, I still continuously give advice when I am asked. Towards the end of my career, I found that investment banking was not enough for us to make profits that can make us compete with the other banks. When the idea of universal banking came, in addition to you being a good investment bank, you should be able to take deposits and give cheque books. From time to time, I try to give them my ideas, just like this morning (on the day of the chat), I asked why my shares on the market are not performing. I became an adviser; I took them through what is being quoted on the market. In those days, when I went to the central bank and announced that I wanted to start a bank, one young man told me that I would go to jail, obviously because he did not have faith in himself and the fact that no Nigerian had done it. I am now sitting as a founder and from time to time, I come out with words of wisdom and observation. Did your training as a lawyer help you get this far? I was doing very well in law as a student. The government of Awolowo trained lawyers in the drafting of laws, not just public laws alone, but laws for agreements and financial documents. After training in the British parliament, I continued in London. It was while I was in London that I heard of stocks and shares. That was when I had the idea of setting up an investment company called Primrose Investment. So definitely, that training opened my eyes. I rose to some of the highest levels in the civil service, and at 28, I was the assistant parliamentary counsel of the Federation, I was the assistant legal drafts man. I got to know of NIDB- Nigerian Industrial Development Bank and I said to myself, ‘I must go there’. What I did was useful for upcoming generations, and that training helped me to get into this financial thing. But when I was in NIDB, and I had to be offered the appointment, they told me that after all, I was just a lawyer, and to rub it in, they brought in a young 32 year-old American who only had a first degree. I was 42 and he was 32. So I wrote petitions to the then Obasanjo administration. I was a fighter and I made enemies, ill-informed enemies; I didn’t fight them back because I was focused in what I wanted to do. So that training gave me the broad mind and exposed me to finance. People expected that you should be an economist or accountant before you can do what I did. So to those of you who had different discipline, if you listen to the voice of God, if you listen to your inner self, you can be at the top. Looking at FCMB today, would you say you are comfortable with what it has become? My mind is entrenched in something much bigger, which was why I led FCMB to be quoted on the market. That was why I also disabused the myth that the bank was only meant for elites. Go to FCMB, we are very much involved in retail banking; that is why we have grown from five branches to nearly 300, and we are still growing. So, it is more or less a function of the environment that we are going the way we are going. We are just about half way to where we are going, and I thank God for the chief executive because his dreams are much wider than what I thought. He took the bank from over a hundred branches to nearly 300 branches, he has acquired nearly eight banks, and we are still growing. This means that FCMB is a dynamic institution; we have not reached our journey. The chief executive said within a certain period, he would bring us among the first five. I pray for him and I am in full support of it. When the dividend was high, at what point did you decide to go and achieve what you called an industry benchmark? I had set a target that at a particular time, I must allow the old order to change, yielding place to new. Success without a successor is not success. So at a point, I was thinking of the stage I would retire, and I chose the age of 70, but at 65 to 68, hell was let loose even when I knew I hadn’t done anything, but my God was with me. At the eve of my 70th birthday, I retired. Growth is something that is continuous, so I was making arrangement for succession. Where would you want to see the FCMB group in the next decade? Not because Ladi is my son, the sky is the limit and I want him to explore. Very soon, the London branch would be expanded and its horizon is being widened, and but in Nigeria, there is a crying need to bring back banking facility to the computer and mobile phones. The best of the state-of-the-art banking practices being cashless, I want FCMB to be among the first five as I agree with this dream, but not just in size, also in service. In London, I used my card in a big shop and within seconds I got an alert, the shop manager asked if we had a branch in London and they wanted to open an account. I felt proud, that is the next change I want for FCMB. You have seen it all in the financial sector, what will be your advice to young CEOs? Professionalism, ethics and culture of excellence, having faith in your God and anchoring what you are doing on the Supreme Being. The reason I emphasize God is because much of what has happened to me, has been God-driven. You must not compromise integrity no matter what profit you are going to make; you should be transparent and clear. I have learnt considerable lessons in life, and I have gone through the crucible of a chastising experience with the support of providence, I have renewed my strength like an eagle and I am now in a position to soar to whatever level my God would take me. Although I was thoroughly shaken, I was not uprooted, and my head was bowed, but not cut. In spite of all these, the Almighty God gave us the grace, to reorganise the group in order forge ahead. Like a swimmer, you cannot suddenly stop in the middle of the sea. If you do, you would sink. So you have to continue to swim and face the waves, but you must have confidence and faith in God. That is what has been sustaining us at FCMB. What is the secret of your health? I am either in the swimming pool or walking around this place. I just feel that God still has a big plan for me even till 100 years. But the basic thing is to ask God to give me that grace to live well and serve him in total contentment with what He has done for me. I am not over ambitious, I am like the net which a fisherman throws into the water and harvests it based on what God will give him. So the secret is the grace of God.
Posted on: Sun, 15 Sep 2013 08:10:11 +0000
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