Nigeria's healthy banks are hiring, while the rescued ones are downsizing
Nigeria's banking sector is a tale of two very different worlds. The rescued institutions, massively undercapitalised, live under the shadow of a September deadline to complete the M&A process imposed by the reform-minded Central Bank and the very real threat of nationalisation or liquidation.
"The regulators are moving closer to full resolution of Nigeria's banking-sector crisis and there is a new urgency to get things done," says Razia Khan, head of Africa Research at Standard Chartered. "But in the rescued banks the jobs outlook is grim and unlikely to improve anytime soon."
The healthy banks, on the other hand, have returned to profitability after the financial crisis-related losses and "they are now hiring again," says Khan. "There is a lot of movement, they are very focused and their outlook is healthy. Longer-term things look wonderful. It is interesting to see that people from abroad are now willing to move to work for the Nigerian banks."
One example of a bank focused on growth is First Bank of Nigeria, which has just announced a 144% rise in profits before tax in the last financial year. FBN Capital, the investment banking, asset management and securities trading arm of First Bank of Nigeria, is now recruiting and strengthening its position with a view to becoming the leader in the sector, and has just succeeded in poaching some experienced talent from rival institutions.
The new head of equity research is Bunmi Asaolu, who studied in London and has now left a similar role at CSL Stockbrokers. Gregory Kronsten, who went to Oxford University and was director of Africa research at Trusted Resources Ltd, will oversee macroeconomic and fixed income research. The new head of Institutional Sales is Wale Adebayo, who is an alumnus of Columbia Business School and until now worked for Standard Chartered Global Markets as head of the financial institutions sales and derivatives business for Nigeria.
"The new members to the team will bring a wealth of experience in extensive banking, risk management, operations, asset management, forecasting, technology and equity research, adding depth to our product and service offerings," says Osaze Osifo, Ceo of Lagos-based FNB Capital. "Their appointments come at a time when our goal is to have the best quality team in the region and to provide best-in-class investment banking and asset management services to our clients."
